As businesses brace for the annual wave of summer vacations, new data from Paycom reveals a costly habit hiding in plain sight: 25 percent of U.S. employees don’t submit their PTO requests until the day they leave or even later.

This last-minute approach to PTO is more than a nuisance — it creates payroll errors, disrupts staffing plans, and raises compliance concerns, particularly in customer-facing industries where consistency is key.

Paycom, a provider of cloud-based workforce management tools, points to confusion as a deeper issue. According to a 2023 study by the company, 33 percent of employees say they struggle to understand their company’s time-off policies.

That lack of clarity may deter them from submitting requests properly or on time.

The Timing Couldn’t Be Worse

Businesses are about to experience a 40 percent spike in time-off requests during the summer months. July 5 alone sees 326 percent more vacation requests than the average day, according to Paycom’s data.

To stay ahead of the chaos, Paycom recommends organisations tighten their policies before peak season hits.

Tiffany McGowen, senior executive vice president of HR and talent acquisition at Paycom, said: “Undermanaged time-off processes are often the root of understaffing or downturns in productivity during popular vacation seasons. Organisations need accessible, efficient and consistent time-off systems that prioritise business continuity and employee experiences.”

That means auditing PTO rules, enforcing advance request deadlines, and making sure managers regularly communicate expectations. For high-demand days, the typical employee submits their request 34 days in advance, a window that businesses can use as a planning baseline.

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