Unlimited PTO is one of those workplace policy perks that is currently getting some attention globally. The term “unlimited PTO” simply stands for “Unlimited Paid-Time-Off.” It is a flexible vacation policy currently practiced by some companies globally, especially technology companies. Unlimited PTO is becoming a thing for a lot of companies. Employees enjoy having this flexible vacation policy. Reports from MetLife’s trends survey in 2019 showed that 72% of employees want to have an unlimited Paid-Time-Off.
There’s a lot to discuss when it comes to incorporating unlimited paid time off into your company. There are a few upsides and downsides to be on the lookout for and try to avoid as well.
In this article, we’ll be talking about all there is to know about the unlimited PTO.
What is Unlimited PTO?
This is a flexible vacation policy in which employees get to enjoy limitless vacations. It allows employees to have some time for themselves to rest, refresh their minds, and improve their talents. An unlimited PTO policy example could be employees requesting the weekend off from their managers and the head of the company. This policy is good as long as it is not abused.
The Benefits of this policy
Builds trust in the company
With this flexible PTO policy, there is an increase in productivity in your company. This comes as a result of having your employee’s mental health as a priority. For this reason, employees can trust the company’s values and work to create a better workplace environment.
No need to pay for unused hours
With an accrued PTO, which most employees don’t end up using, a company will have to pay up those unused hours whenever an employee decides to leave the company. This can be a handful at times, especially when such a company wasn’t expecting it. However, with this flexible PTO policy, companies do not have to worry about that since employees get to pick the times when they would want to take some time off.
No barriers to acquiring talent
A company without this flexible vacation policy tends to lose out on great talent. Employees love the concept of having limitless time off and will definitely look out for it during job interviews. Instead of missing out on talents that could be perfect for your company, you should try and incorporate this policy into your organization.
The Cons of this Policy
Abuse of the policy
Everything good always has a negative side to it unless it is carefully maintained. When it comes to unlimited paid time off, some employees tend to mess up the policy. They start to misuse the opportunity, which makes it difficult for other companies to give such benefits to their employees.
Tension from managers
Some managers also misunderstand the concept behind the policy, and you can find them asking questions and complaining. This makes employees afraid to ask for their unlimited paid time off.
Employees may take less time off
Just like we stated above, employees get scared to take their required time off. They do not want to come off as taking too much time off or not being serious with their work. For this reason, they would prefer to stay at work and not take time off at all.
How to handle the Unlimited Policy Properly
Communicate the policy clearly
To have your messages passed across properly, you’ll need to communicate well. It’s very important that you explain how the limitless time off policy works and inform your employees not to worry about spending too much time off as long as they do not abuse it. Also, communicate the policy to managers as well, so they can prepare ahead of time and get things running even without some employees present.
Get feedback
It’s important to ask questions to understand how well the policy is improving your workplace environment. Get feedback from both the employees and the managers. Ask the employees how they feel during their time off and after they return. Do they feel refreshed and energetic? Ask your managers how they manage to handle the workflow when certain employees are not around. This will help you to improve how the policy works and create an impressive work environment.
Companies with Unlimited PTO
There are currently several companies with unlimited PTO and some of them include Netflix, Oracle, LinkedIn, Zoom, Asana, Evernote, and Roku.
Conclusion
Unlimited PTO is a policy that shouldn’t be ignored or taken lightly. It has both good and bad perks. But when handled properly, it is a great way to enhance work-life balance and improve performance in companies.