What is volunteer time off (VTO)? A complete guide

Everyone needs to take time off from work to recuperate and avoid burnout. But what if your time-off policy could strengthen teamwork and engagement among employees while boosting your brand perception?

Volunteer time off, or VTO, allows workers to get paid while giving back to their community when they otherwise couldn’t afford to give up their time. It benefits your company, employees, and community, and promotes a culture of giving that can do wonders for your brand.

What is volunteer time off?

VTO is a form of leave where companies pay employees their standard compensation for time spent supporting an approved charitable organization. This paid volunteer time off is an attractive benefit for philanthropic employees that fosters a sense of community and emphasizes the importance of giving back within your company.

Benefits of volunteer time off

Offering paid time off for volunteering yields several potential benefits for an organization. By supporting your workers' communities, you not only enhance employee satisfaction but also strengthen your company’s corporate social responsibility. It can help improve your brand image and leave a positive impression on stakeholders, community members, and customers. It can also attract job seekers with a passion for volunteerism and giving back. 

Companies that offer volunteer time off enjoy many perks related to keeping their employees happy and promoting their brand. It can be a boon to their community (e.g., cleaning up a park) and, therefore, your company (by giving employees a cleaner park to enjoy during their lunch break).

Organizations that emphasize volunteerism as a component of their corporate culture—including companies with volunteer time off—enjoy the following benefits:

• Better retention: Employees who participate in exciting volunteer opportunities often return to work feeling fulfilled and re-energized.
• Employee engagement: A VTO policy shows team members you care about them, their community, and the world. Proving your company’s commitment to workers will increase employee engagement.
• Morale: Deriving deep satisfaction from packing boxes all day is the stuff of lofty corporate seminars—not childhood dreams. Pay people to do something they believe in to raise morale and help them obtain a real sense of purpose.
• Brand perception: Offering paid volunteer work shows potential customers and clients that the world is better off with your company in it. In other words, reimbursing your employees for their volunteering time could drive revenue for your business.
• Increased teamwork and cohesion: Including VTO in your compensation plan creates opportunities for employees to bond outside the office. Working side-by-side on a meaningful project fosters a connection and makes for a more harmonious and empathetic working environment back on the job.

Another monetary benefit? You may be able to write off some of these costs during tax season. Businesses in the United States can deduct qualified contributions up to 25% of their taxable income. However, employees can’t write off volunteer time on taxes, even if paid. Consult your accountant to determine your business’s unique tax opportunities.

Volunteer time off vs. voluntary time off

Unlike paid time off for volunteer work, voluntary time off (also sometimes referred to as VTO) is a different type of leave. As the name suggests, employees take time off work without pay, with the assurance that their job will still be there when they get back. This type of leave might be used for maternity/paternity leave, extended vacations, or to reduce staffing levels during slow periods.

Creating a VTO policy

Many companies offer paid time off for volunteering, but these policies can differ between businesses—especially when hiring in other countries. Your policy’s structure should align with your company’s culture, strategy, and objectives.

Consider following this volunteer time-off policy template when developing your volunteer program:

1. Establish a clear, concise purpose

Develop a mission statement with goals that align with your corporate mission and company culture. Consult with workers to learn what causes matter to them. Employees should feel like they’ve been given a gift, not an obligation. Be mindful of possible value differences at home and abroad. 

2. Create a time-off policy

You may require a specific amount of notice before taking time off to volunteer. You might also consider how many days or hours will be provided, at what compensation rate, and whether unused hours can roll over.

Even a few hours per month can make a difference to an understaffed organization, but meaningful work often takes time. Some activities, like a river cleanup, may require several hours per person. 

3. Determine eligibility

Certain factors may disqualify employees from this benefit. For example, employees may have to be with the company for a certain period before receiving volunteer time-off hours.‍ VTO may vary by union status or seniority. This should be as easy for workers to track as PTO.

4. List approved organizations or activities

Designate the causes or organizations that qualify for volunteer time off. Provide examples of volunteer time off or a list of approved organizations with local chapters. Options might include volunteering at a food bank, working at an animal shelter, cleaning up the local community through environmental nonprofits, helping out at a school, conducting relief work overseas, or assisting recently displaced refugees. 

Be mindful of the diverse needs of workers' local communities, especially when they are spread across different regions worldwide.

Volunteer time off best practices

Each organization must structure their volunteer time-off program in a way that works best for them. With that in mind, here are some general recommendations on how to create a volunteer time-off program:

• Establish a budget: Determine the amount of time your company can realistically offer employees for volunteering with compensation. Involve key stakeholders during budgeting, including your human resources team and financial decision-makers.
• Create a policy: A volunteer paid time-off policy should outline the program’s expectations, requirements, and other details. It should be clear, concise, and enforceable. It can exist independently or as part of a flexible work strategy.
• Select and implement tools: Most companies already have systems for tracking time-off requests. Determine who will manage volunteer time-off request forms and data. You may need a designated individual to oversee the program. Consider whether you’ll use apps or other programs to track volunteer time.
• Promote the program: Communicate through employee channels to spread the word about your company’s volunteer time-off program. Encourage everyone to get involved, including managers and leadership.

Oyster can help build your VTO strategy

Many employers offer 8–40 hours of volunteer time-off benefits per year. Smaller employers may provide fewer volunteer hours, while larger corporations typically have the means to offer more. Regardless, a flexible working package that includes VTO is a powerful draw for top talent worldwide. 

Oyster streamlines the process of managing all types of time off, from VTO and PTO to sick leave. Discover how the comprehensive platform can help you build and implement a competitive total rewards strategy that works for you and your team.