As one of the largest telecommunications companies in the world, Verizon is known for being a leader not just in technology and innovation, but also in employee experience. Central to this reputation is the company‘s generous vacation policy, which grants ample paid time off to all team members, from part-time retail workers to senior executives.
In this deep dive, we‘ll explore the ins and outs of Verizon‘s vacation policy, the business advantages of prioritizing time off, and what it means for the company‘s over 130,000 employees. As a retail and consumer expert, I‘ll also share insight into how Verizon‘s investment in employee wellbeing translates to a better customer experience.
Verizon‘s Vacation Allowance: The Basics
Let‘s start with the foundation of Verizon‘s vacation policy: the amount of paid time off (PTO) employees earn. As of 2022, here is the breakdown of vacation days based on tenure:
| Years of Service | Vacation Days |
|---|---|
| 0-2 years | 15 days |
| 3-7 years | 20 days |
| 8-24 years | 25 days |
| 25+ years | 30 days |
These figures reflect an update to the policy in 2019, which increased PTO for employees in the 3-7 year and 8-24 year tenure bands. Previously, the jump from 15 to 20 days didn‘t happen until year 7, and 25 days weren‘t earned until year 15.
It‘s worth noting that all full-time employees qualify for the 15 day minimum, even new hires. This is a significant perk, as many companies require a waiting period before PTO starts accruing. Part-time employees are also eligible for vacation time on a prorated basis.
The Business Case for Generous PTO
On the surface, offering more paid vacation days might seem like a sunk cost for employers. In reality though, the business benefits of a robust PTO policy are well-documented.
Studies have consistently shown that employees who take regular time off are more productive, creative, and engaged at work. For example, a report from the U.S. Travel Association found that 78% of managers saw an improvement in employees‘ focus and productivity after taking vacation.
Generous vacation policies also play a key role in talent attraction and retention. In a survey by HR consulting firm Mercer, 64% of employees said their company‘s time off policy was an important factor in their choice to work there. 52% said they would be less likely to leave their job if they had more vacation days.
These advantages translate to a meaningful competitive edge and cost savings for Verizon. Voluntary turnover can cost employers up to 2x an employee‘s salary to replace them, so retention is a major priority. By offering industry-leading PTO, Verizon makes a strong case for top talent to join and stay with the company long-term.
How Verizon‘s PTO Stacks Up
To put Verizon‘s vacation allowance in perspective, let‘s compare it to some of the company‘s major competitors and peers in the retail and telecom space:
-
T-Mobile: Employees accrue 15 days of PTO in years 1-5, 21 days in years 6-10, and 26 days after year 10. Retail employees must wait 90 days before accruing PTO. (Source)
-
AT&T: No public data on exact vacation allowance, but employee reviews suggest 2-4 weeks based on tenure. (Source)
-
Target: New employees receive up to 2 weeks of vacation, increasing to 3 weeks after 5 years and 4 weeks after 10 years. (Source)
-
Walmart: Full-time hourly employees earn 2 weeks of PTO at one year, 3 weeks at three years, and 4 weeks at ten years. Most part-time workers are not eligible for PTO. (Source)
While some retailers like Target are competitive with Verizon‘s starting PTO allowance, none can match the potential for 25 or 30 days of vacation. Verizon also stands out for providing PTO to part-time employees and not enforcing a waiting period for accrual.
Vacation Usage and Barriers
Of course, a generous vacation policy is only impactful if employees actually use their earned PTO. Thankfully, Verizon fosters a culture that not only allows but actively encourages team members to take time off.
Leadership sets the tone by taking vacations themselves and frequently communicating the importance of PTO. Supervisors work with employees to ensure time off requests are granted fairly and efficiently. And company policies like vacation carryover and flex days provide a pressure release valve for workers who need to bank some extra time.
Still, Verizon isn‘t immune to a pervasive challenge across all industries: vacation hesitancy. Over half of American workers don‘t use all their earned PTO each year, whether due to fear of falling behind, a lack of coverage, or perceived pressures from management.
To combat this, Verizon has instituted mandatory company-wide mental health days. In 2021, the telecom giant scheduled two "Self-Care Friday" days off for all U.S. employees to unplug and recharge. Leadership also more frequently reminds employees to take advantage of available mental health resources and flexible work arrangements.
As an expert in retail and consumer behavior, I believe these efforts are crucial not just for employee wellbeing, but also for customer experience. Frontline retail workers who are stressed, burnt out, or distracted aren‘t able to provide the level of service customers expect. By contrast, employees who feel rested, supported, and valued by their employer are empowered to go the extra mile.
Verizon store employees I‘ve spoken with consistently express appreciation for the company‘s vacation policies and how supervisors work with them to balance time off requests with business needs. Several noted a clear link between taking regular vacation and being able to provide friendly, knowledgeable, and attentive service to customers.
The Bigger Picture
Verizon‘s vacation allowance is certainly generous compared to many employers, but the company is by no means an outlier. In recent years, organizations across a range of industries have significantly expanded and enhanced PTO policies.
Some major companies like Netflix, LinkedIn, and Goldman Sachs have even embraced unlimited vacation policies. While in practice employees tend to take about the same amount of PTO under these plans, the move away from accrued banks reflects a shift in how businesses view time off.
Rather than a liability on the balance sheet, vacation is increasingly seen as a strategic investment in human capital. And in a tight labor market and an era of remote work, generous PTO has become table stakes for attracting and retaining talent.
Verizon‘s vacation policy and associated culture is very much aligned with this broader sea change. By providing ample paid time off from day one and empowering employees to use it, the company is making a clear statement about the value it places on employee wellbeing and work-life balance.
Key Takeaways
To sum up, here are the key points about Verizon‘s vacation policy:
- Employees earn 3-6 weeks of paid vacation time based on tenure, with all full-time new hires starting at 3 weeks
- Part-time employees are eligible for prorated vacation time
- Verizon‘s policy is among the most generous in the telecom and retail industries
- Leadership actively encourages employees to use their earned PTO and take mental health days
- Generous vacation allowances benefit Verizon through improved retention, productivity, and customer experience
- Verizon‘s policy reflects a larger trend of businesses expanding PTO as a talent attraction and wellbeing strategy
For Verizon employees, the key takeaway is to take full advantage of your earned vacation time. Work with your supervisor to schedule days off in advance when possible, but don‘t hesitate to use PTO for unexpected needs or last-minute breaks. Stepping away from work is essential for your wellbeing, and in turn, your ability to thrive in your role.
As a consumer, you can feel good about doing business with a company that walks the walk in terms of employee experience. When team members are rested and empowered, it shows in their interactions with customers. And in an economy driven by customer experience, that‘s a powerful differentiator.
