Many U.S. workers are starting the new year with unused paid time off, a pattern workplace researchers say can contribute to burnout and increased costs for employers.
Research from the Society for Human Resource Management indicates that paid leave consistently ranks among the most valued job benefits for employees, trailing only health insurance. Despite that, SHRM data from recent surveys found that nearly half of workers did not expect to use all of their allotted paid time off.
Workers cited several reasons for skipping vacation, including heavy workloads, lack of staffing coverage, pressure from supervisors, and workplace cultures that discourage time away. Personal factors such as travel costs and scheduling challenges also played a role.
Job security concerns have become another significant factor. A survey conducted by resume platform LiveCareer found that 29% of U.S. workers said fears of layoffs made them hesitant to take paid time off, even when experiencing elevated stress levels.
Burnout And Employer Costs
Workplace experts warn that consistently skipping time off can increase the risk of burnout, which carries measurable financial consequences for employers.
A peer-reviewed study published in the American Journal of Preventive Medicine found that employee burnout costs U.S. employers an average of approximately $4,000 to more than $20,000 per worker each year, depending on role and compensation. Researchers estimated that a company with 1,000 employees could lose roughly $5 million annually due to burnout-related productivity losses, health care costs, and employee disengagement.
The study found that burnout among managers and executives generated the highest financial impact due to compensation levels and organizational responsibilities.
Time Off As A Response To Stress
Burnout is also shaping how workers use vacation time when they do take it. A November study by travel insurance company Faye found that more than half of U.S. travelers reported experiencing burnout, with many booking trips specifically to cope with work-related stress. Respondents said it took an average of four days away from work before they began to feel meaningful relief.
Human resources specialists say the findings highlight a growing gap between the availability of paid leave and employees’ willingness to use it.
They note that encouraging workers to take time off — and ensuring adequate coverage during absences — can help reduce burnout, protect productivity, and limit long-term costs tied to disengagement and turnover.