VTO can mean two different types of leave: voluntary time off (unpaid) or volunteer time off (paid). Understanding the difference is crucial when shaping your company’s leave policies and communicating them to employees.

What Is Voluntary Time Off?

Voluntary time off is an unpaid leave option that allows employees to step away from work without penalty when staffing levels exceed business needs. Companies often use VTO to quickly adjust to fluctuating workloads and reduce labor costs.

A well-known example is Amazon, which has encouraged warehouse employees to take VTO during slower periods to maintain operational efficiency.

Potential Drawbacks

• Can create tension between staffing levels and workload.
• May give the impression that cost-cutting takes priority over employee income.
• Employees might feel pressured to choose between earning wages or supporting the company’s staffing goals.

What Is Volunteer Time Off?

Volunteer time off, on the other hand, is paid leave that allows employees to volunteer for approved charities or community organizations while receiving their regular pay. This policy supports corporate social responsibility (CSR) efforts and can strengthen employee engagement and brand reputation.

Rather than only donating money to nonprofits, companies offering VTO empower employees to make a direct community impact.

VTO vs. PTO (Paid Time Off)

• Volunteer Time Off: Paid hours dedicated to volunteering.
• Voluntary Time Off: Unpaid hours employees can choose to take.
• Paid Time Off (PTO): A broader category that includes vacation, sick leave, and volunteer leave.

Volunteer time-off hours should be balanced with other forms of PTO to ensure employees have enough time for rest, sick days, and personal needs.

Prevalence of Volunteer Time Off Programs

Volunteer time off is increasingly popular. In 2022, nearly 47% of companies offered community volunteer programs, and many expanded to virtual opportunities during the COVID-19 pandemic to accommodate remote workforces.

Examples of Companies Offering VTO

• Rocket: Offers up to 8 hours of volunteer time with any 501(c)(3) organization, plus unlimited PTO for company-sponsored events.
• Salesforce: Provides up to 7 paid days for volunteering, encouraging skills-based contributions to nonprofits.
• Johnson & Johnson: Includes 4 paid volunteer days in its benefits package to empower employees to give back.

Creating a Volunteer Time-Off Policy

To establish an effective VTO policy, clarify:

• Which organizations or causes are eligible (e.g., political causes or nonprofits).
• Alignment between chosen organizations and company values.
• Who approves and tracks VTO requests.
• What proof of participation or verification employees must provide.

A well-structured VTO policy ensures your program aligns with your organization’s culture and makes volunteering a meaningful part of your employee benefits package.

Key Takeaway: VTO can mean unpaid voluntary time off or paid volunteer time off. Both options, when used thoughtfully, can improve workforce flexibility, support CSR efforts, and strengthen employee engagement.