The Importance of Vacation for Employees

The importance of encouraging employees to take time away from work

When was the last time you took a long vacation—or even a few days off to recharge? What about your employees? Nearly half of Americans don’t use all their available time off, despite acknowledging its importance.[1] Without regular breaks, personal and professional demands can lead to stress, burnout, and productivity issues. Taking time away from work can help prevent these problems and others.

Benefits for both employees and employers

Taking time off is just as vital to wellness as eating healthy, exercising, and getting enough sleep. It gives employees something to look forward to and a chance to step outside their routines for “me time.” Vacations create space for people to renew health habits, consider long-term changes, spend quality time with family, and practice self-care—all of which can reduce stress.[2]

Our mindset affects both our personal life and work. Research suggests that happier people may enjoy better health, stronger relationships, higher incomes, and superior job performance.[3],[4],[5],[6]

Importantly, time off doesn’t have to mean a full vacation. It can be a day for preventive care or other health services, self-care, or tending to family responsibilities. Employees often face complex caregiving obligations, from bonding with a new child to supporting aging parents. When employers openly and regularly encourage employees to take time for life’s demands, employees feel supported in using their benefits instead of trying to push through stress at work.

What does all this mean for employers? Those who actively promote time off may experience valuable direct and downstream benefits.

1. Better support for mental health 

Time-off benefits may seem like simple budget items, but they’re actually tools for self-care. When employees take time to rest, they’re better equipped to cope with stress and preserve their mental health.[7]

Time off can also offer relief for those focused on urgent family issues. Without that space, the pressure to juggle work and family responsibilities can be overwhelming. Managing stress is critical for building resilience—a key component of good physical and mental health.[8] And healthier employees may be less likely to have unscheduled absences related to mental fatigue.

2. Improved employee retention and morale

Holistic time-off policies that recognize vacation and other life needs can help companies retain and attract talent. Further, encouraging employees to take time away from work shows employees that they are valued and appreciated. This support can boost workplace morale and give employees flexibility to take time away for observances that are important to them.

The practice of holistically supporting time off is one that UPMC employs, according to Tim Holt, vice president of Human Resources for the UPMC Insurance Services Division.

“At UPMC, we focus on the physical and emotional well-being of our employees. One of the ways we do this is through our paid time off options, which are some of the most robust in the industry,” Mr. Holt said. “We recognize that our employees feel valued and respected when they have the flexibility and support to choose paid time off options that work best for them.”

3. Potential productivity gains

Poor mental health and stress among employees can be detrimental to organizations. These factors can negatively affect employees’ job performance, productivity, and how they engage with one another.[9] Time away from work can help reduce employees’ stress and have downstream benefits tied to productivity.   

4. Reduce burnout risk

Balancing personal and professional responsibilities can be challenging. Over time, this balancing act can lead to burnout, which is defined by the National Institute for Occupational Safety and Health as an “occupational phenomenon” that involves chronic exhaustion and a strong, persistent negative attitude. Both of these elements can impair employees’ ability to successfully perform their job duties.[10] Regular, supported time off gives employees time to rest and avoid burnout. As caretakers of your company, employees must be well enough to perform at their highest level to best serve the organization.

5. Stronger company culture

A supportive approach to time off can transform company culture. When leaders encourage breaks, employees are more likely to feel safe stepping away from work. Such a practice also shows that employees are valued as individuals, not just workers.

Not taking vacations affects employee well-being and your bottom line

There’s a misconception that time off is costly for companies, but what’s actually costly is employees not using this benefit. When employees don’t take time away from work to destress, they can put their mental and physical health at risk.

Poor mental and physical health can have costly outcomes. The indirect costs of absenteeism, disability, or reduced work output may be several times higher than direct medical costs.[11] In fact, health-related productivity losses cost U.S. employers an estimated $218 billion each year.[12] These numbers underscore why vacation time isn’t just a perk for employees—it’s a strategic financial investment for employers.

Encourage employees to take vacations

When employees don’t use vacation time, it’s often because of a lack of communication about available benefits or mixed messages about using them. According to Mr. Holt, companies can bolster support for time away by employing these tactics:

  • Keeping leaders informed. It’s important for company leaders to know what employees’ time-off benefits are and the policies around them. That information can then be regularly shared with workers. Such communication will help ensure employees know that taking time away from work is supported.
  • Put employees at ease. Employees may be reluctant to take time off if they’re concerned about returning to an overwhelming workload. If possible, help them reschedule or redistribute their work. Your team will be more bonded when they know they can leave their work to their colleagues.
  • Model time off at every level. Everyone—from executives to front-line staff—can benefit from stepping back to recharge and refocus. When leaders take time off for themselves, employees may be more likely to follow suit.

Mr. Holt added that these measures are exemplified at UPMC. “We encourage our teams to spend time away from their workspaces. They return more focused, energized, and engaged,” he said.

With UPMC Health Plan, care travels with you

UPMC Health Plan strives to ensure that employees who are our members can enjoy their time off without worrying about coverage for care. They can access virtual or emergency care while traveling thanks to our extended national network, plus these benefits:

  • UPMC MyHealth 24/7 Nurse Line: Members can talk to a registered nurse who will tell them how to treat their condition at home or advise them to seek care.*
  • Virtual visits: UPMC AnywhereCare allows members and their covered dependents, including children, to access high-quality care using their computer or mobile device—24/7. It’s an easy way for members to have a virtual visit with a provider for nonemergency conditions, including the flu, allergies, rashes, and pink eye.**
  • Global emergency assistance: UPMC Health Plan members can travel anywhere in the world with the peace of mind that comes from having access to Assist America. This service can connect them to doctors, hospitals, and other emergency services—free of charge.***

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