Increasing PTO days can have an astounding effect on employee turnover. This particular fact is neither groundbreaking nor news to employers and HR teams, but evidence from newer studies does serve to drive the point home.
Most businesses have a set policy in place for offering employees paid time off, but the number of days available and the work culture built around it often vary. Employees who are allowed to relax and take occasional breaks are more likely to feel positively inclined towards their employers, but with the recent changes in global work culture, employers have grown reticent about drawing too much attention to unused PTO days or the option to take a break from work.
A new study from Florida Atlantic University and Cleveland State University shows that offering employees at least 6 to 10 days of PTO could significantly reduce resignations and improve worker retention and engagement overall.
There is a link between PTO and employee turnover, with additional paid time off helping employees stay on the job. (Image: Pexels)
The Link Between PTO and Employee Turnover: Happy Employees Stay Out of Interest, Not Obligation
“Does one week now prevent two weeks’ notice later?” That’s what a new report published in the Journal of Strategy and Management asked and explored in great detail, and it’s an investigation that deserves mention. The study found that offering employees between 1 and 5 paid days off per year has little effect on voluntary resignations, however, when the number is increased to a moderate 6-10 days, or a high 11 or more paid days off annually, there is a meaningful reduction in employee resignations. Women were also found to be more responsive to higher levels of paid time off than their male counterparts.
While 11 days of PTO are not high by international standards, they are not always a common offering in many businesses and industries. Employees who need time away from work are forced to compromise on pay as a result or rely on other strategies to get by at work. Trends like microshifting provide the illusion of time away from work, but for the most part, they only allow work to shift into a more constant presence in the life of an employee.
The link between PTO and turnover decline is a very clear one. When workers have more time to attend to their personal lives and take breaks, they are less likely to allow their anger and resentment towards their employers to build up. Unlimited PTO policies may not be feasible for every business, but more generous paid leave days are always a viable solution, especially when it’s backed by a careful strategy that allows for it to be implemented without disturbing the rest of the organization’s operations.
Is Employee Retention Going to Be a Problem in 2026?
PTO and the related employee outcomes should be prioritized in 2026 as a matter of principle, but it is also evident that many organizations have settled into a sense of complacency in terms of employee retention. Due to the fluctuating job market, employees appear to be staying on at their jobs regardless of their feelings about the role. Despite this state of stability, it appears that workers are getting ready to take charge of their careers.
Adecco’s 2026 Workforce Trends report suggested that employees are hoping to find job security and professional agility in 2026, returning to their ambitions of building long-lasting careers that don’t stagnate. While training, opportunities for professional development, and flexibility are key to reducing employee turnover, PTO policies may be a great way to ensure they hear you out.
Introducing a PTO Policy Requires a Culture Where It Is Acceptable for Employees to Utilize It
It isn’t enough to merely introduce a generous PTO policy to cut resignations down. Businesses like Olipop have been applauded for their generous leave policy, but the real reason for their popularity is the active encouragement and support shown towards employees to use their leave days. Many employees hesitate to use their PTO days because the culture at work makes it hard for them to do so. As a result of a lack of support from managers and colleagues, employees only feel burdened by the prospect of going on vacation and returning to criticism.
Establishing clear PTO norms in the workplace is a part of the process of ensuring employees benefit from the policy. Providing other benefits around PTO can also be a way to guide workers towards appreciating the generous PTO leave days, which should ideally go above 11. From travel allowances to subsidized travel support, there are many ways to support employees with their desire to take some time away from work.
It may be too soon in this discussion to broach the idea of unlimited PTO days, but that’s an idea worth exploring someday as well.
Could increased PTO days really help with employee turnover? We’d like to hear from you, so share your thoughts in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
