Is Your PTO Policy Actually Working? New Research Says Probably Not
If you've ever offered unlimited PTO thinking it would be a win for your team, this study is worth a read.
Patriot Software, an accounting and payroll software company for small businesses, recently surveyed 1,000 employed Americans about how they actually think and feel about their paid time off — and the results reveal something important for anyone who leads a team.
The biggest headline: 66% of workers would still take 15 days or fewer per year even with unlimited PTO. Among younger employees (Gen Z), nearly half would take 10 days or less. Unlimited, it turns out, doesn't mean people will take more time off. In many cases, the opposite is true. As the study notes, "without a defined number, employees look to managers and peers for cues. If leadership doesn't model extended breaks, the safest move is often to take less time off."
Why? Because without a clear number, employees start guessing. They look to their manager's behavior, their team's habits, and the unspoken norms of the workplace. Industry research backs this up — a Namely study found that employees with unlimited PTO actually averaged fewer days off than those on traditional plans.
Here's where it gets interesting for small business owners and team leaders: 91% of workers say they'd find a mandatory minimum time-off policy paired with unlimited PTO appealing. People don't want less structure. They want clarity and permission.
Two-thirds also say a fair annual PTO allowance is 11 or more days. That's not extravagant — it just needs to be real, communicated, and encouraged.
There's also a fairness gap worth paying attention to. 27% of women say their PTO doesn't feel fair relative to the work they do, compared to 20% of men. Time off often covers far more than vacations for many employees — it covers the invisible labor of caregiving that doesn't clock out at 5pm. This matters for retention, too: research shows that 52% of employees reported burnout in 2024, and it's hitting women and younger workers especially hard.
For Millennials on your team, 40% have taken unpaid leave after running out of PTO, with another 25% needing to but not being able to afford it. That's a retention and wellbeing risk hiding in plain sight.
As a business leader, you set the tone. If you want your team to actually rest — to come back recharged and at their best — that starts with building a culture where taking time off is genuinely supported, not just theoretically permitted.
Start with the policy. Then model the behavior yourself.
See the full data from Patriot Software here.