Work. Sleep. Repeat. The monotonous routines of corporate work aren’t exactly nurturing for the soul. In fact, this kind of labor often makes us feel like another cog in a machine, and that can take a massive toll on our well-being.
The hard truth: Bills aren’t going to pay themselves. Work will always be, well, work.
But a recent study in the Journal of Managerial Psychology adds more nuance to the complicated relationship between our jobs and our sense of self. The researchers asked whether people would feel more human if they received additional paid vacation time versus an equivalent monetary bonus.
The study’s participants chose a clear winner, but not everyone on the internet agrees. So what did the research find, and what do everyday workers and career experts have to say? Read on to learn more about this polarizing debate.
Get Reader’s Digest’s Read Up newsletter for more money and career tips, humor, travel, tech and fun facts all week long.
What did the study find?
The research paper found that employees felt significantly more human when they received paid vacation time rather than a bonus worth just as much. After conducting three experiments involving 2,206 participants, the researchers came to a few important conclusions:
- Vacations make people feel less like little robots. Researchers asked participants to recall experiences of going on vacation and experiences of earning a monetary bonus. Respondents said that their vacations made them feel more human than the extra money.
- Time off leads to a better work-life balance. The researchers discovered that when people received paid vacation, they felt a better sense of work-life balance.
- Disconnecting from work gives us back our “humanness.” When people had a greater distance from work while they were on vacation (as in, they weren’t checking email), they overwhelmingly felt more human.
This study didn’t directly ask whether people would prefer paid vacation time or bonus money. Rather, it asked which of these perks made them feel more like people, not corporate drones.
The research also doesn’t account for a wide variety of factors, such as base pay, remote versus in-office work, or additional benefits, such as health insurance or child care. Still, it raises an important question around how work, money and vacation time affect our overall well-being—but we’ll get into that more below.
What are the arguments for more money?
For some employees, there’s nothing like cold, hard cash, because it can create financial stability.
According to Djuan Short, a licensed clinical social worker who works with high-achievers navigating burnout and financial stress, someone facing burnout could use the extra income to outsource daily household chores, which frees up more time for self-care activities or connecting with loved ones. “Investing in child care, paying for therapy or building long-term security becomes more feasible when financial resources expand,” she says.
Taking the extra money can also improve well-being by alleviating financial stressors. “That type of stability can reduce anxiety about emergencies, retirement or caregiving responsibilities,” Short adds.
The key is to use your work bonus strategically, says certified professional career coach Chelsea Jay. The extra money goes furthest when you use it to increase savings, lower debt or build assets. “An extra $5,000 a year can wipe out high-interest debt faster,” Jay says. “If someone invests $5,000 annually at a 7% return, that can grow to around $70,000 over 10 years.”
With every decade, those retirement earnings continue to grow. This can set you up well in the long term—provided you don’t give in to the temptation to spend. “Where people go wrong is treating a raise as permission to upgrade their lifestyle,” Jay adds. “If expenses rise with income, the advantage disappears.”
What are the arguments for more vacation time?
Research shows that burnout is on the rise in response to our fast-paced, high-stress modern lifestyles. And a major benefit of taking a vacation is that it can improve work-life balance.
“Time away can prevent the kind of burnout that pushes people to quit altogether,” Jay says. “Extra days off also create space—travel, family time or even a week without constant decision-making can reset focus.”
For some people, a regular reset may be exactly what they need to feel their best, which helps them better show up at work and in life. “If employees are actually able to use their time without penalty, that usually reflects healthier expectations overall,” Jay adds.
Vacation time not only protects your energy, but it also helps ward off the mental fatigue that inevitably arises when working in a demanding role.
And in case you’re only concerned with the dollars and cents, it’s worth noting that you’ll pay more taxes on a bonus than you will on paid time off. “Bonuses are withheld at a higher rate,” says Chase Calabrano, an operations manager who now works remotely after spending his career in on-site roles. It’s true: For any bonus under $1 million, the federal withholding amount is 22%. In contrast, paid time off is taxed at your regular rate, with no change in your salaried pay.
“More importantly, time is so valuable,” Calabrano says. “It is the ultimate nonrenewable, nonconsumable resource.”
What complicates this choice?
Personal circumstances can play a significant role in where you stand in this debate. Here’s what to consider if you’re ever faced with this decision.
Time off may be your highest priority
You may need extra vacation days more than you need extra cash. When you have health issues or a disability, for instance, your sick days may not cover all the time off you need. And if you have young children, you may want more time off to spend with them.
At the end of the day, money can’t clear your schedule for doctor visits or make up for the time you missed with your children as they grew up.
Your job might not respect vacation time
Before you jump at that vacation offer, consider how your workplace respects vacation. “Extra days mean little if work simply piles up while you are gone,” Jay says. Walking into a tornado of work the minute you return from vacation puts you back on the path to burnout—and fast.
Likewise, if a boss is emailing or calling you while you’re taking personal time off, it isn’t exactly a relaxing time.
Besides, you might not need more vacation days. If your employer makes it difficult to take time off, you may have a store of vacation days that you end up losing at the end of the year. Remember, the study found that taking time off made people feel more human—not simply having a jumbo cache of vacation days. In other words, the perk is in the vacationing.
You might really need the money
Financial standing and emotional state are impossible to ignore in this debate. If you really need the money, that takes precedence over a vacation.
“If debt is high or savings are thin, more income may reduce stress more effectively than extra days off,” Jay says. “If someone is already financially stable but running on empty, time off may have a bigger impact.”
So which is the better choice?
The verdict, according to the study: vacation time. The researchers say people feel more human when they have more time to take a vacation, disconnect from work and tune in to what matters to them most.
Of course, it’s not that simple. In an Instagram poll of 100 of my followers, 59% voted for vacation, while the remainder (41%) chose the financial bonus.
If you find yourself faced with this choice, think about which option best protects your capacity. “If financial anxiety is keeping you up at night, more income restores stability. If exhaustion is eroding your health and relationships, more time is the intervention,” Short says. “The most sustainable choice is the one that relieves the strain you are carrying right now.”
RELATED:
- Here’s Why Gen Z Is Actually Welcoming the Return to Office—And You’re Totally Going to Get It
- Ouch! New Study Reveals the Top 10 Cities Where Residents Are Hardest Hit by Inflation
- This Is the Highest-Paying Hourly Job at Walmart—And They Definitely Deserve It
About the experts
|
Why trust us
At Reader’s Digest, we’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Djuan Short, LCSW, licensed clinical social worker with Dahlia Rose Wellness Center; email interview, Feb. 18, 2026
- Chelsea Jay, certified professional career coach with ResumeCoach; email interview, Feb. 18, 2026
- Chase Calabrano, operations manager; Instagram interview, Feb. 19, 2026
- Journal of Managerial Psychology: “A humanizing separation from work: the benefits of rewarding people with vacation instead of money”
- Scientific Reports: “Burnout and stress: new insights and interventions”
- Fidelity: “How are bonuses taxed?”
- Ramsey Solutions: “2025–2026 Federal Income Tax Brackets and Tax Rates”
The post Debate of the Week: Would You Prefer More Money or More Vacation Days? appeared first on Reader's Digest.
from Reader's Digest https://ift.tt/BaJkstp
Comments
Post a Comment