Today, Sorbet, a fintech solution that helps employees access the cash value of their unused paid time off (PTO) as they accrue it, released its PTO Report 2024, the first post-pandemic assessment of PTO. The report sheds light on the ongoing PTO crisis in America, impacting both employees and employers – uncovering PTO trends, issues, and YOY shifts in PTO policies across industries, states, gender, age and more.

The comprehensive survey found that nearly two-thirds (62%) of Americans don't use all of their PTO. This is climbing at an alarming rate – shy of doubling from just 4 years ago. 5.5% of American workers did not take any PTO in 2023.

The increase in unused PTO – up 14.7% since 2017 – presents a significant challenge for employees and employers alike. Employees begin to accumulate an asset that they typically can't access unless they separate from their current employer. For employers, PTO represents one of the most expensive, unutilized and underappreciated employee benefits, with the lowest perceived ROI – while their employees grow increasingly frustrated and disgruntled by financial pressure and burnout. But despite buzz around unlimited PTO policies, the policy has only been adopted by less than 15% of American companies – in fact, more than half of companies still offer traditional PTO policies by which unused PTO accrues, carries over and gets paid out at termination.

The data reveals a concerning glimpse into American work culture — modern, younger and remote workers aren't taking vacation days. ⅓ of American employees (32%) say it's difficult to take time off when working from home.  Gen Z employees are 15% more likely to say it's difficult to take time off – therefore, employees between ages 21-34 take about one week less vacation time than employees over 55.

The report also revealed inequalities in employee workplace benefits, especially across gender, industry and region. Women take 10% less PTO than men, and are more comfortable taking sick days than vacation days. As far as industry, employees in the finance space take the most advantage of their time off, using 78% of their allocated time. Minnesotans seem to utilize the most PTO — allotting an average of 18 vacation days — and Minnesota is also the #1 State for employee PTO utilization (14 days used).

"Unused PTO is worth actual money and can be used as an additional source of compensation," says Veetahl Eilat-Raichel, co-founder + CEO of Sorbet. "PTO can also be used as a cash benefit to reduce financial stress. Employers need supportive PTO benefits in the workplace which offer employees choice and flexibility – including the ability to advance unused PTO days."

Selected as one of the 20 most promising startups in 2021, Sorbet's app allows employees to unlock the value of their unused PTO days through a cash advance, allowing them to access money that they never even knew existed – while offering employers the ability to provide their employees an impactful financial benefit – risk and cost free.

For a more in-depth look at the survey findings, please visit https://www.getsorbet.com/.