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For years, the prevailing theory amongst workers about “unlimited vacation” is that it actually encourages workers to take less time off. Without the entitlement to a set number of days, employees can feel awkward requesting days off, or worried that doing so will make them look less committed to work.
But a new study from payroll and HR platform Deel finds it’s less about specific PTO policies than about culture. It all depends on where you live, says Lauren Thomas, the startup’s economist.
On average, European employees with unlimited vacation policies took four more days off than their counterparts with fixed time off this year—27 vs. 23. But in North America, there was hardly a difference, as both those with unlimited and fixed vacation policies averaged about 17.
“Americans and Canadians are definitely getting less time off, even when you only look at fixed time, than Europeans are,” Thomas said. “That is a combination of policy and culture.”
In fact, Canadian workers are taking less time off than those in the U.S. Thomas said this is because 77% of U.S. workers have access to paid vacation, while just 73% of Canadians do, based on U.S. Bureau of Labor Statistics and Statistics Canada data.
But Americans and Canadians who work for companies that span the Atlantic do take more time off than their counterparts working for companies that do not have hires in Europe, Thomas said.
“I think companies need to think really carefully about how much productivity they’re really getting when they’re requiring so much [working] time from their employees,” she said. “At the end of the day, we know that time off is important for productivity, it’s important for making a good company, it’s also really important for attracting talent.”
Which cities are best at encouraging workers to take time off to rest and recharge? Stockholm, Berlin or Paris, where Thomas found employees took 25 or more days off this year.
Kristin Stoller Editorial Director, Fortune Live Media [email protected]
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