Landmark FAU/CSU study: More paid time off keeps US workers from quitting

(Press-News.org) At the height of the “Great Resignation” in 2021, more than 50 million workers in the United States quit their jobs, driven by stress, burnout and rising expectations for sustainable work. Nearly half cited inadequate benefits as a main reason for leaving.

The U.S. is the only country in the Organisation for Economic Co-operation and Development – a group of 38 high-income nations – that does not guarantee paid time off (PTO), paid vacation or paid maternity leave.

While some employers have expanded PTO, many workers still get none, and fewer than half have consolidated leave. With replacement costs for a single employee reaching a full year’s salary, a new study shows that robust PTO policies are imperative for keeping American workers on the job.

Using 18 years of data and more than 32,000 observations, researchers from Florida Atlantic University and Cleveland State University examined how PTO influences voluntary employee turnover. The study is the first to apply the Conservation of Resources Theory to PTO, which suggests employees stay when they have the time they need to rest, recover and manage personal demands.

Researchers explored not only PTO’s overall impact on resignation but also how different amounts affect early-career men and women over time.

Analysis from the study, published in the Journal of Strategy and Management, shows a clear pattern. Offering just one to five days of PTO produced only modest reductions in quitting and had no meaningful effect when men and women were analyzed separately. However, providing six to 10 days significantly lowered resignations – especially for men. The strongest effect emerged at 11 or more paid days off, where both men and women were substantially less likely to leave their jobs.

For women, PTO has little impact until they are offered 11 or more days, at which point quitting decreases significantly. Women generally need more PTO than men to meaningfully reduce the likelihood of leaving their jobs.

“While we know resignations affect the labor market and paid leave is a topic of growing interest, past research has been limited,” said Patricia A. Stoddard Dare, Ph.D., senior author and a professor of social work at CSU. “What’s been missing is a long-term, nationally representative look at how PTO impacts men and women differently and whether it truly influences employees’ decisions to stay. Our study addresses this critical gap, providing insights that could inform both workplace policy and broader discussions about employee retention.”

Notably, PTO reduces quitting for both men and women. Although men already quit at lower rates than women (4.7% vs. 6.7%), additional paid days off further decreased quitting for both groups – highlighting that all employees value meaningful time away from work, even if they may use that time differently.

The findings also directly address a key question raised by a bipartisan Congressional committee: How many paid days off actually help retain workers?

“The evidence is clear – policies that offer only five paid days off simply don’t go far enough,” said LeaAnne DeRigne, Ph.D., co-author and a professor in the Phyllis and Harvey Sandler School of Social Work within FAU’s College of Social Work and Criminal Justice. “Most state laws stop at this minimal threshold, and not a single state mandates more than eight paid days off. Yet our data show that the strongest retention benefits occur well above those limits. If policymakers and employers want to keep workers, they need to recognize that meaningful time away from work isn’t a luxury – it’s a proven strategy for stability.”

As of December 2024, 18 states require paid sick leave or PTO, but most cap accrual at five days. This study shows that offering six to 10 days significantly reduces resignations, yet only nine states mandate this level for some workers, and no state requires more than eight days (64 hours) per year – even though this research suggests the greatest retention benefits occur beyond this threshold. 

Findings from the study indicate that PTO, a factor that likely contributed to the “Great Resignation,” remains a persistent and significant concern for employers. Identifying the optimal number of paid days off offers valuable guidance for business leaders, managers and policymakers seeking to strengthen retention.

“Voluntary turnover isn’t just a staffing issue – it’s a trillion-dollar challenge that affects every corner of a business, from recruitment costs to lost clients,” said Candice M. Vander Weerdt, Ph.D., corresponding author and a professor in the Department of Management at the College of Business at CSU. “Our research shows that the number of paid days off plays a meaningful role in retention. Moving forward, it will be crucial to carefully weigh the costs of offering PTO against the far greater costs of losing employees, so organizations can make benefits decisions that truly support both their workforce and their bottom line.” 

- FAU -

About Florida Atlantic University:

Florida Atlantic University serves more than 32,000 undergraduate and graduate students across six campuses along Florida’s Southeast coast. Recognized as one of only 11 institutions nationwide to achieve three Carnegie Foundation designations - R1: Very High Research Spending and Doctorate Production,” “Opportunity College and University,” and Carnegie Community Engagement Classification - FAU stands at the intersection of academic excellence and social mobility. Ranked among the Top 100 Public Universities by U.S. News & World Report, FAU is also nationally recognized as a Top 25 Best-In-Class College and cited by Washington Monthly as “one of the country’s most effective engines of upward mobility.” To learn more, visit www.fau.edu.

 

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