Volunteer Time Off (VTO): What It Is and Why It Matters for SMBs

Quick look: Volunteering strengthens communities, and when it’s woven into your workplace, it can strengthen your organization, too. This guide helps small business employers understand what volunteer time off (VTO) is, why it works, and how to build an effective and compliant program.

Offering paid time off for volunteering is gaining ground, and employee enthusiasm is keeping pace. According to SHRM’s 2025 Employee Benefits Survey, 28% of U.S. companies now offer this perk, and that number continues to climb. Employee engagement is increasing as well: volunteer participation has risen 12 percentage points since 2020, and median volunteer hours have grown by nearly 50% since 2022.

A successful volunteer time off policy comes down to understanding the benefit, making the business case, and executing it well.

What is volunteer time off?

Volunteer time off (VTO) is paid leave in which employees receive their regular compensation for time spent volunteering with an approved nonprofit or community organization. It’s separate from standard paid time off (PTO); employees don’t have to sacrifice vacation days to give back.

Some common VTO activities include:

• Cleaning up public spaces
• Volunteering at a food bank, homeless shelter, or animal rescue
• Building homes for families in need
• Donating blood
• Distributing care packages

The benefits of volunteer time off for employees and employers

Corporate volunteerism is a win-win; it supports good causes, encourages employee well-being, and delivers measurable business value.

For employees, VTO can lead to:

• A stronger sense of community: Hands-on civic work helps people feel more connected to their world and their coworkers.
• Improved wellness: Research shows that many volunteers experience improved mental well-being, greater self-esteem, and reduced stress.
• Increased engagement: Stepping outside the daily routine can spark fresh thinking and renewed motivation.
• Greater job satisfaction: 71% of employees say that a work culture that supports giving back is very important to them.

And for employers, the impact is just as powerful:

• Supporting charitable causes that align with company values in a way that goes beyond financial donations
• Strengthening recruiting and retention (86% of employees say it’s important for their company’s values to align with their own)
• Enhancing public reputation and employer brand
• Fostering a more connected and friendly work environment

4 steps to implement a VTO program

Rolling out a VTO policy takes some planning, but the payoff is worth the effort. Here’s how to get it right:

1. Create the policy

Start by answering these foundational questions as you draft your program guidelines:

• What are our goals for the program?
• Which charitable organizations are eligible for VTO?
• Can employees choose their own causes, or is there an approved list?
• If we have employee resource groups (ERGs), can they help surface volunteering opportunities?
• Is VTO available to part-time employees, or only full-time staff?
• What documentation will employees need to submit?
• How many VTO hours will be offered annually?
• Which time and labor tool will track VTO usage?
• Who approves or denies VTO requests, and how far in advance must employees submit them?
• Are there peak periods when VTO should be avoided due to coverage needs?
• What are the wage and hour laws impacting VTO, if applicable?

2. Get leadership buy-in

Before launching, present the program to key stakeholders. Showing leadership that VTO aligns with company values and has concrete business benefits helps ensure active support rather than passive approval.

3. Communicate the program widely

Even the best policy won’t succeed if employees don’t know about it. Spread the word through multiple channels:

• Add it to your employee handbook
• Announce it at a company town hall
• Ask managers to share it directly with their teams
• Post it on your intranet and collaboration tools (e.g., Microsoft Teams, Slack, etc.)
• Discuss during employee onboarding

Encouraging employees who participate to share photos or a quick recap on social media or in team channels is a great way to build momentum and inspire others to get involved. Public recognition, like a company-wide shout-out for a team that spent a Saturday at the local food bank, for example, goes a long way.

4. Track and measure effectiveness

Human resource (HR) leaders should monitor participation rates on an ongoing basis to identify whether adjustments or additional promotion are needed. Your time and labor portal can make it easy to view how VTO hours are being used across the organization.

Consider surveying employees periodically to gauge awareness, measure satisfaction with the program, collect feedback, and uncover any barriers to participation. The insights you gather can help you refine the policy over time.

Support your community without stretching your team thin

Launching a VTO initiative is worthwhile, but for small HR teams, carving out time to plan and manage it can be a challenge.

That’s where HR outsourcing, like partnering with a professional employer organization (PEO), can help. PEOs support companies across HR, employee benefits, payroll, risk and compliance, and more.

ExtensisHR, for example, provides clients with dedicated SHRM-certified HR Business Partners who can offer hands-on VTO guidance, including policy creation and adjustments, handbook updates, and more.

Plus, our mobile-first Work Anywhere® platform makes it easy for employees to manage time off requests from anywhere, while our Time and Labor Cloud helps ensure accurate tracking and payroll.

Giving back doesn’t have to come at the expense of your other priorities. Learn more about how PEO works or take our free quiz to see if it’s the right fit for your business.