Organizational Wellness

How Volunteer Time Off (VTO) Can Enhance Employe Benefits Packages

Last Updated Nov 8, 2024

Time to read: 7 minutes

Ever noticed an employee’s motivation dip? It’s easy to blame work pressures, but burnout is often the real culprit. Balancing work and personal life is tough, and creating boundaries for work-life wellness can be tricky for both employees and employers.

But it’s worth it—85% of companies with work-life wellness programs report a boost in productivity. One powerful tool to support your teams? VTO (Volunteer Time Off).

VTO goes beyond standard PTO, giving employees the chance to give back to their communities while boosting morale and engagement. Companies offering VTO see higher employee satisfaction and loyalty—critical for attracting and retaining top talent.

Let’s explore how adding VTO to your benefits can bring fulfillment to your teams and elevate your organization!

What Is VTO (Volunteer Time Off)?

Volunteer Time Off is a policy that gives employees dedicated time off to engage in charitable activities. Paid time off can play a big role in an employee’s work-life wellness, and VTO adds another layer of meaning and satisfaction for people.

This policy actively encourages employees to contribute their time to volunteer work without being penalized at work. VTO recognizes the value of employees' time since they are rewarded for sharing their time and skills with those in need.

Keep in mind that VTO can also stand for Voluntary Time Off, which is a different concept entirely. While Volunteer Time Off focuses on paid time for community service, Voluntary Time Off typically refers to unpaid or paid personal absences like vacation or personal days, depending on company policy. Clearly defining these terms helps your employees fully understand their benefits and the compensation strategy within your organization.

By incorporating VTO into your organization's framework, you empower your employees to make a positive impact in the community. Plus, this helps HR managers create a thriving organizational culture where altruism and personal fulfillment are just as valued as business objectives.

The Evolution of VTO

Not so long ago, offering paid time off for volunteer work was seen as a novel and generous benefit — a way for companies to differentiate themselves in the competitive talent market. However, as work-life wellness has gained traction, employees are seeking greater purpose in their professional lives more and more: 80% of workers say that participating in charitable activities is important to their wellbeing, according to The State of Work-Life Wellness 2024 report from Wellhub.

VTO has evolved into more than just a perk—it's become a powerful part of fostering work-life wellness, helping employees balance professional responsibilities with personal fulfillment. When companies offer VTO, they’re not just supporting charitable activities. They’re creating an environment where employees can recharge emotionally and mentally through meaningful engagement. This leads to a healthier, more productive workforce, and research shows that employees who feel supported in their personal passions are more likely to stay loyal and engaged at work.

The Impact of VTO on Workplace Dynamics

Many organizations appreciate the benefits of PTO, and volunteer time off takes it to the next level. One of the exciting aspects of VTO lies in how it creates a positive ripple effect within the workplace. This is especially true for employee morale and retention. Engaging in meaningful activities outside the workplace contributes to a sense of purpose, and this sense of purpose boosts overall job satisfaction.

Organizations that embrace VTO often find themselves reaping the benefits of increased employee loyalty, too. When employees feel supported in pursuing their passions and making a positive impact beyond their daily tasks, it creates a feeling of commitment to the company. This is impactful for organizations since such loyalty and engagement can help reduce turnover rates and retain valuable talent.

Employee retention isn’t the only advantage. VTO is also an attractive benefit that top performers may be especially interested in during recruitment. It tells candidates that your organization values a holistic approach to employee satisfaction beyond the confines of the workplace. Plus, VTO is a tangible show of a company's values, and prospective employees may be drawn to a workplace that aligns with their own values. VTO may make finding talent that much easier for your recruitment team.

Crafting a VTO Policy That Resonates with the Workforce

How do you create a VTO policy that appeals to employees? Consider these basic components of a typical VTO policy to see how it might align with your company's values and procedures.

Clear Eligibility Criteria. It’s important to be fair and consistent with your policy. You can do this by defining who is eligible for VTO with factors like employment status and tenure.
Amount and Frequency. Specify the allocated time for VTO and the frequency of its use. This could be a set number of hours per month or a yearly allocation.
Approval Process. Set up a simple approval process that makes it easy for employees to request VTO while ensuring their volunteer activities align with company values and goals.
Integration with PTO. If you were to add a VTO policy, does it overlap with any existing ones like PTO? If it does, how so? Clarify how VTO aligns with other time-off policies so that employees can strategically use their time off.
Tracking and Documentation. Having a system that tracks PTO hours and activities can be helpful, too. It helps HR manage the policy fairly and celebrate the positive impact their workforce makes in the community.
Flexibility and Diversity. There is a wide variety of volunteer work that employees may want to try. Whether it's supporting local charities or participating in environmental projects, you can encourage a diverse range of options.

Overcoming the Challenges of VTO

While VTO has many advantages, it’s not without challenges. HR leaders need to consider how VTO may affect daily operations. For example, this policy is designed to enhance, not disrupt, workplace dynamics. It’s important to consider how VTO affects other employees and the workflow of your organization. Are there boundaries in place that prevent employees from being absent too often? How is work distributed during these absences? HR leaders are responsible for the wellbeing of all employees, including those that are affected by coworkers using VTO.

There are also financial considerations, as compensating employees for time spent outside the office requires careful planning. However, with the right strategies—such as clear guidelines and flexible scheduling—VTO can become a seamless part of your company’s workflow.

Despite these challenges, it is possible to create an effective VTO policy. You can ask yourself questions like:

Is the organization in a financial position to uphold a VTO policy?
Who will approve VTO requests?
What verification will you require from your employees?

Once you’ve decided whether or not a policy like this makes sense for your company, the rest comes down to balancing business goals with giving employees the flexibility they need. If you want to include VTO in your benefits package, consider these best practices to avoid major pitfalls.

Transparent Communication. Communication is key. Provide clear expectations and guidelines surrounding VTO to help everyone remain on the same page. This includes providing information during onboarding and in written documentation and being clear about any regulations. Being extra clear helps employees and management align on the impact of volunteer time on day-to-day operations.
Strategic Planning. You can also encourage employees to plan their VTO in advance so that teams can manage workloads and deadlines. By incorporating VTO into overall business planning, organizations can mitigate potential disruptions and help others stay engaged, not overwhelmed.
Flexibility in Scheduling. You can focus on flexible scheduling arrangements to accommodate VTO without compromising operational efficiency. Whether it's staggered work hours or collaborative project management, flexibility protects both the business and employees. It may help to get the employee's perspective and send out HR surveys to see what teams and individuals need when VTO comes into play.

There will always be HR management challenges and you may find that VTO doesn’t work for your company. Still, with the right processes in place, many companies can offer VTO while meeting their business objectives.

Boosting Employee Wellness with VTO

More than one-third of workers say their company rarely or never gives employees time for charitable activities, which can take a hit on employee satisfaction. However, something as simple as VTO can provide your employees with more opportunities to give back. It enriches your workplace culture and shows that you care about employee wellbeing.

You can also round out your employee wellbeing initiatives with a wellness program, which can focus on the physical and emotional needs of your workforce. Plus, these programs financially pay off for employers — 56% of companies see a return of over 100% from their investment in a wellbeing program.

With a partner like Wellhub, you can discover what your employees need to be healthy and balanced. Speak with a Wellbeing Specialist to see how employee wellness programs can reinvigorate your workforce!