This issue largely depends on the company and its work-rule policies. Some of ATS’s larger customers have set policies in place that deals with vacation time and these policies clearly articulates what happens if and when benefit accruals  are carried over to the next year. On the other hand, small and mid-size companies, may have a verbal have understanding with their workforce regarding vacation and other leave requests.

An article written by Katie Johnson of The Boston Globe based on a recent survey states the following:

“A growing number of North American workers do not take all of their annual allotted days off, companies report. Although some of those days can be rolled over into the next year, workplace analysts estimate that more than half of employees lose at least some vacation every year.

With staffs reduced and workloads increased since the last recession, employees find it harder to get away. Technology has added to the expectation that employees are supposed to be on all the time — working evenings and weekends, checking in even when they finally do use some vacation time.”

Susan Krauss Whitbourne, PhD penned an article for Psychology Today that says, in part, “chronic stress takes its toll in part on our body’s ability to resist infection, maintain vital functions, and even ability to avoid injury. When you’re stressed out and tired, you are more likely to become ill, your arteries take a beating, and you’re more likely to have an accident. Your sleep will suffer, you won’t digest your food as well, and even the genetic material in the cells of your body may start to become altered in a bad way. Mentally, not only do you become more irritable, depressed, and anxious, but your memory will become worse and you’ll make poorer decisions. You’ll also be less fun to be with, causing you to become more isolated, lonely, and depressed.

It’s important for employees to stay on top of their allotted time-off and make the time to use them. An effective time and attendance system can help companies track vacation balances on-the-fly.  Studies show that when employees are well rested, they are productive and that in turn, can boost a company’s bottom-line.