Mié, Ago 17th 2022
You’ve seen the jokes all summer – “See you in September,” Europe says; meanwhile workers in other countries are putting off surgeries because they haven’t accrued enough time off. Why do Europeans have so much paid time off? How did this evolve and how does it work?
In many countries like Switzerland, there are so few businesses open during the month of August that it makes more fiscal sense to close down for two or three weeks.
Despite a long history of impressive growth and wealth, employees in the United States still work longer hours and take shorter vacations than employees in Switzerland and other European countries. Why do the Swiss enjoy so much vacation time? And what effect does paid time off have on employees’ level of productivity and mental health?
Swiss labor laws
The minimum number of paid vacation days granted to every Swiss citizen is at least four weeks – or 20 days– each year (and five weeks for workers under 20 years of age). However, there are exceptions to the rule where employees over 50 are given more than five weeks of paid leave. And this paid time off is on top of the 13 paid Swiss public holidays.
Again, this is minimum. It is very common for Swiss employees who have been with companies for many years to accrue 6, 7 or even 8 weeks per year.
According to the Organization for Economic Cooperation and Development (OECD), that 20-day Swiss minimum hovers around the global average.
In stark contrast, the United States is the only country in the OECD — an organization of 37 countries that collaborate on matters of world trade and economy – that does not legally grant any paid days off for full-time employees.
Lunch is sacred in Switzerland and not for sad desk meals.
Work/life balance in Switzerland
Research studies confirm myriad health benefits of taking paid time off, such as lowered stress levels, greater productivity, and improved mental health. But a striking difference in the work/life balance plays a significant role in how Switzerland and the U.S. manage their paid time off.
Many factors contribute to a positive work/life balance in Switzerland. The main benefits of a robust labor system that legally mandates paid time off, available childcare services, and workplace flexibility. Moreover, lunchtime and weekends are sacred. Lunches are not eaten at desks and bosses are discouraged from contacting employees after work hours. Weekends are encouraged leisure time, and most businesses – even grocery stores – are closed on Sunday.
According to a study by the OECD, Swiss employees on average work 1,557 hours per year (about 222 hours less than their American counterparts). In fact, working hours are capped under Swiss law – 45 hours a week for industrial, office, sales and technical jobs. Fifty hours a week for all other sectors.
Moreover, Swiss employees are encouraged to take their vacation time and never rewarded for choosing one’s job over their PTO. On average, employees in Switzerland enjoy their paid time off by traveling within the borders or abroad to neighboring European countries such as France, Spain, and Italy.
Working hard or hardly working? Some European countries are introducing a four-day work week to improve productivity.
Work/Life balance in the US
Employees in the U.S. have become vacation averse due to a puritanical work culture where companies do not encourage or prioritize their employees’ PTO. Working longer hours are rewarded with promotions, which leaves employees less inclined to take time away from the office even if they are entitled to vacation days.
Nearly half of Americans do not use up all of their vacation days, and 21 percent leave behind more than five vacation days, according to studies from Kimble Applications. The study found that the main reasons why U.S. employees are vacation-phobic are:
– Employers don’t like when their employees are away and sometimes will pressure employees not to take a vacation;
– PTO causes stress because there are too many deadlines or projects and too much work to complete upon return. Often, workload prevents U.S. workers from taking vacation time as well as sick time for the same reasons;
– PTO could derail opportunities for advancement; and
– It is more challenging to unplug and disconnect due to technology, Wi-Fi, and mobile phones.
It can be problematic for businesses to cultivate a culture that supports employees to take time off when their workload clashes with their ability to take time off. This is incredibly stressful for new parents employed in the U.S., who would benefit from maternity or paternity leave — if their employer even offers it.
The U.S. is only first world country that does not offer statutory paid maternity. A survey from Skynova found that only 45 percent of Americans were entitled to maternity leave and 22 percent to paternity leave.
Giving birth in Switzerland: Worth the hype and the cost?
In Switzerland, new parents are granted four months of leave following the adoption or birth of a child. In comparison, Swiss mothers are entitled to 14 weeks of maternity leave after giving birth or adopting a child. Maternity benefits amounting to 80 percent of total income, capped at CHF 196 per day. Swiss fathers are allowed a minimum two weeks of paternity leave.
In short, the idea that “working harder makes me a better person” was handed down from early Puritan settlers and has been baked into American culture for centuries. But what effect does consistently valuing one’s job over one’s mental health have on American employees? Their productivity dips, job satisfaction decreases, stress, health issues arise, and burnout occurs, according to employment researchers.
While U.S. employers changed PTO policies dramatically during the Covid-19 pandemic, the Swiss policies remained largely unchanged.
Pandemic leave
In the aftermath of Covid-19, the U.S. has pivoted in its position on PTO and surprisingly taken the lead in offering flexible time off and additional sick days. American businesses have shifted towards a focus on health-related needs, such as giving employees time off to get tested, recover from illness, or care for sick loved ones. This seismic shift has completely altered employees’ relationships with work.
More than 80% of Americans stated that their employers have become more flexible about time off, compared to 59% of Europeans. Furthermore, 80% of Americans acknowledged receiving increased sick time or paid time off due to COVID-19.
It’s a modification that may last as U.S. employees head into the third year of the pandemic. Providing a more flexible work culture benefits employees and creates an atmosphere of company loyalty when businesses are clamoring to retain workers.
Zurich is the most expensive city in Europe, but at least they have a healthy work/life balance.
Why PTO policies matter
The U.S. can certainly learn something from Switzerland’s PTO policy – which has not changed much in the last two years. When employees take paid time off, it allows them to recharge their batteries and return to work more productive, focused, and engaged. In fact, the top-performing employees at most businesses are those who fully disconnect and use up all their vacation time.
A more productive and happier employee means fewer sick days, less burnout, and potentially higher company revenues. Moreover, companies that encourage and promote employees to take vacation time may improve their bottom line.
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