Sorbet, a fintech solution that helps employees access the cash value of their unused paid time off (PTO) as they accrue it, has released PTO Report 2024, the first post-pandemic assessment of PTO. The report sheds light on the ongoing PTO crisis in America, impacting both employees and employers—uncovering PTO trends, issues, and year-over-year shifts in PTO policies across industries, states, gender, age, and more.
The comprehensive survey finds that nearly two-thirds (62%) of Americans don’t use all of their PTO. This is climbing at an alarming rate—shy of doubling from just four years ago. In fact, 5.5% of American workers did not take any PTO in 2023.
The increase in unused PTO, up 14.7% since 2017, presents a significant challenge for employees and employers alike. Employees begin to accumulate an asset that they typically can’t access unless they separate from their current employer. For employers, PTO represents one of the most expensive, unutilized, and underappreciated employee benefits, with the lowest perceived ROI—while their employees grow increasingly frustrated and disgruntled by financial pressure and burnout. But despite buzz around unlimited PTO policies, the policy has only been adopted by less than 15% of U.S. companies. In fact, more than half of companies still offer traditional PTO policies by which unused PTO accrues, carries over, and gets paid out at termination.
The data reveals a concerning glimpse into American work culture—modern, young, and remote workers aren’t taking vacation days. One-third of employees (32%) say it’s difficult to take time off when working from home. Gen Z employees are 15% more likely to say it’s difficult to take time off. Therefore, employees between the ages of 21 and 34 take about one week less vacation time than employees over 55.
The report also reveals inequalities in employee workplace benefits, especially across gender, industry, and region. Women take 10% less PTO than men and are more comfortable taking sick days than vacation days. As far as industry, employees in the finance space take the most advantage of their time off, using 78% of their allocated time. Minnesotans seem to utilize the most PTO—allotting an average of 18 vacation days—and Minnesota is also the top state for employee PTO utilization.
Unused PTO is worth actual money and can be used as an additional source of compensation,” says Veetahl Eilat-Raichel, co-founder and CEO of Sorbet. “PTO can also be used as a cash benefit to reduce financial stress. Employers need supportive PTO benefits in the workplace which offer employees choice and flexibility, including the ability to advance unused PTO days.”
