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Leading by Example: Vacation Policies and Time Off

Nearly half of US workers don't use all their vacation time. Why leaders set the tone, and how to actually get your team to unplug.
Published
October 2026
Table of Contents

Vacation and time off are essential components of employee well-being and productivity but it seems that US workers are not taking as much time as they should. Leadership consultant, Mark C. Crowley, recently tweeted about the lack of vacation time taken by US workers, raising questions about the cultural and systemic reasons behind such behavior.

Let's explore the reasons behind this trend and the pivotal role leaders play in setting a precedent.

The Role of Leadership in Setting the Tone

Leaders and managers shape organizational culture.

If a manager seldom takes time off or is active during their vacation, it subtly communicates that time off isn't genuinely valued.

Leaders taking regular breaks encourages their teams to do the same.

Benefits of Encouraging Time Off

  • Improved Employee Morale: Regular breaks prevent burnout and boost morale.
  • Increased Productivity: Well-rested employees produce better quality work efficiently.
  • Strengthened Team Dynamics: Fresh perspectives after breaks enhance collaboration.

Strategies for Leaders and Managers

  • Open Communication: Discuss the importance of breaks and encourage team members to share their vacation plans.
  • Plan in Advance: Promote scheduling vacations in advance for minimal disruption.
  • Genuine Breaks: Implement "no-email during vacations" policies.
  • Share Personal Experiences: Leaders should share positive vacation experiences.

Crafting Effective PTO Policies

Unlimited PTO policies have gained popularity as companies aim to attract top talent. However, implementing such a policy requires careful consideration.

If unlimited PTO is something your team is considering, check out our article, Crafting an Effective Unlimited PTO Policy for Your Company, which discusses its pros and cons and offers tips for effective implementation.

Regardless of your policy, it's crucial to clearly communicate the rules and expectations to employees.

Creating a PTO Policy that Works

Whatever the approach, clear communication is key. Paid time off (PTO) and vacation policies can be complex.

It's vital to find a system that aligns with your team and sets the tone for your organization's culture. There are various PTO options you can choose from, and as such it's important to understand the potential impact on company culture, and how to make and implement the best decision for your team.

Whether it's a set number of days, unlimited PTO, or required PTO, the policy should reflect the company's values and goals.

Leading the Charge for a Balanced Work-Life Culture

Leadership isn't just about achieving business goals; it's about setting the right example in every aspect, including work-life balance.

By prioritizing their well-being and that of their teams, leaders can foster a culture where everyone feels valued and physically/mentally fresh so that you can collectively contribute to long-term success and sustainability of the organization.

FAQ

Why don't more employees use their vacation time?

Pew research found 46% of US workers don't use all their allotted time off, including sick and mental health days — and the rate of underuse actually rises the more people earn.

How can leaders encourage employees to take time off?

By modeling it themselves. Leadership shapes organizational culture, and if managers visibly skip vacation, employees read that as the real expectation regardless of stated policy.

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