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Unlimited PTO – the Pros & the Cons

Posted by: Karen Booher on August 17th, 2022

If you are looking for an enticing benefit to attract talent, unlimited paid time off (PTO) is certainly one offering that tops the list. It’s a progressive policy that allows employees to take as many days off work as they need to or want to. It’s a concept that is both intriguing and terrifying to executive management and HR departments.

Unlimited PTO doesn’t mean getting a free pass to play hooky from work anytime you want. People are hired to do a job and they’re expected to deliver during work hours. But, with unlimited PTO, gone are the days of deducting 2 hours for a doctor’s appointment against a lump sum of PTO. Employees can take time off when needed for a personal appointment, to volunteer at their kid’s school, and to go on vacation.

Sound idyllic? Yes, it does. As long as it’s not taken advantage of, the work gets done, and it doesn’t create an undue burden on – or resentment from – the rest of the team.

Implementing an unlimited PTO policy is a big decision with plenty of pros and cons to be considered. Any benefit is hard to take away once it’s been offered, so it must be strategically and carefully thought through first.

A Few of the Pro’s

A Few of the Con’s

Other Thoughts and Considerations

In conclusion, unlimited PTO is certainly an interesting concept and one that may warrant further research and consideration by your company. Before making the jump, it is certainly best to consult with an employment attorney for help structuring and fine-tuning any new benefit, perk, or policy.


Sources:

  1. Glassdoor for Employers, “Why your company’s unlimited PTO isn’t working (and how to fix it)”, by The Glassdoor Team, July 22, 2022.
  2. https://eightfold.ai/blog/unlimited-paid-time-off-policy/
  3. https://blog.bqe.com/2019/08/19/unlimited-pto-the-key-to-productivity#:~:text=Unlimited%20PTO%20can%20also%20increase,stress%20and%20improves%20mental%20health

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