VTO ​​can refer to one of two leave categories:  voluntary leave  or  volunteer leave  . Understanding the differences between these paid and unpaid time-off options is essential to developing your leave policies and promoting them to your employees.

What is voluntary leave?

Voluntary leave is a leave category that some companies use to balance staffing needs with a rapidly changing workload. When there are more employees available to work on a given day than needed, they are given the option to take leave without pay without any impact on their employment status.

Online retail giant Amazon  is a high-profile example of a company  that has used this approach, encouraging its warehouse employees to adopt VTO to increase efficiency and save on staffing costs.

What are the disadvantages of voluntary leave?

Voluntary leave policies can help reduce unproductive hours in warehouses and call centers, but they can perpetuate a mismatch between staffing and workload. Additionally, voluntary leave policies can lead to the perception that saving money is more important to the employer than the livelihood of its employees.

Employees may be confused when deciding whether to take a VTO or stay and earn the necessary funds, especially if management has the responsibility to fill the VTO quota.

What is a volunteer holiday?

Volunteer leave is a type of paid leave in which employees receive regular compensation for hours spent volunteering for an approved charity or community organization. This form of VTO  reinforces an organization's value in corporate social responsibility  . It can be one of many programs used to make an impact or attract employees who want to make a difference in their local communities. VTOs also provide a way for employers to provide support to nonprofits or communities beyond just monetary donations.

VTO ​​vs. Paid Leave (PTO)

Paid time off (PTO)  is a broad term that covers all types of paid leave - voluntary time off is just one type of PTO. Alternatively, voluntary time off is   not included in PTO because it is unpaid.

Voluntary leave hours should be balanced with other forms of paid leave to ensure employees have adequate discretionary time for vacation, sick leave, and to fulfill their VTO duties.

How many companies offer voluntary leave?

Volunteer leaves have become a popular benefit among employers. In 2022,  47% of companies  offered community volunteer programs. Many organizations also offer virtual volunteer programs, broadening the options for their employees during the COVID-19 pandemic and beyond.

When implemented correctly, VTO shows that employers value their employees' desire to make a difference in the world around them — an affirmation that can strengthen the relationship between you and your employees. Some businesses that offer volunteer leaves include:

• Rocket:  The home and auto financing company gives its employees  up to eight hours of volunteer time with any 501(c)(3) organization  , as well as unlimited PTO for company-sponsored volunteer events.
• Salesforce: This cloud-based software company   offers up to  seven paid days of VTO . They encourage employees to pursue skills-based opportunities that allow them to use their expertise to help organizations in need.
• Johnson & Johnson:  In addition to crafting products that have become household staples over the years, Johnson & Johnson  empowers its employees to contribute with four days of paid volunteer work as part of its benefits package  .

How to Create a Volunteer Leave Policy

It's important to develop a voluntary leave policy that helps employees select eligible organizations for their VTO hours. Your policy will need to answer the following questions:

• Is your organization in a position to volunteer for political causes?
• Are there organizations that operate contrary to your company’s mission and values?
• Who will approve VTO requests?
• What kind of validation do you want from your employees?

Designing the best VTO policy for your company lays the groundwork for a successful and memorable program.