Oakland County EPLI: Is Unused PTO Hurting the Economy?
An Oxford Economics study released in February 2014 reveals that employers looking to increase productivity should encourage their employees to use their paid time off, or PTO. In 2013, Americans left an average of 3.2 PTO days on the table, despite the fact that employees and managers alike recognize the benefits of taking leave.
The biggest benefits of employees using PTO and reducing an employer’s Oakland County EPLI (Employment Practices Liability Insurance) claims risk is higher productivity amongst staff, stronger workplace morale, greater employee retention, and significant health benefits.
Experts believe that there is a disconnect between what managers believe and what employees perceive about PTO. Nearly 34% of employees indicated that their employer neither encourages nor discourages leave, while 17% of managers considered employees who take all of their leave to be less dedicated. 4 out of 10 American workers said their employer supported time off, but their heavy workload kept them from using their earned days.
Adam Sacks, president of the Tourism Economics division of Oxford Economics, says that stockpiled time off creates considerable financial liability for companies and governments when employees “cash out” upon departure.
The Oxford Economics study, based on a survey of 971 employees, 700 of whom receive PTO as part of their benefits package, also found that unused PTO hurts the economy, to the tune of billions of dollars. The conversion of unused days of paid time off into travel would result in an additional 580 million days of travel and thus an additional $67 billion in travel spending. The total economic impact of this additional spending, including indirect effects, would be 1.2 million U.S. jobs and $52 billion in additional income earned.
As a business owner, it’s important to ask yourself how you are communicating your PTO benefits to your staff, and if they feel encouraged to use their PTO or not. Open communication can relieve tension in the workplace and potentially reduce the chance of an Oakland County EPLI Claim occuring. At Capital Insurance Group, we understand the financial protection you need, and offer competitive Oakland County Business Insurance Products to serve you. Please contact us today for more information at (888) 296-0418.