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What is unlimited pto

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An unlimited PTO policy gives employees the right to decide for themselves how much paid time off to take as long as it doesn’t affect their work. Unlimited PTO can cover sick days, vacation, and specific leave scenarios.

Is unlimited PTO worth it?

For businesses, unlimited PTO may seem risky, but there are many benefits. The pros of unlimited leave include:

  1. More productive employees – employees with extra-flexible schedules tend to get more done overall.
  2. More trust between employers and employees – employees feel employers trust them more when they have more control over their schedules. Increased trust can lead to more loyal employees.
  3. Helping the business stand out from competitors – In addition to salary, professionals seek companies who offer unique experiences such as unlimited vacation days.

Unlimited PTO isn’t a fit for every company, but when implemented correctly, the policy can become a strong tool for talent recruitment and retention.

How to implement unlimited PTO

A successful unlimited PTO policy often requires a few stipulations. This can include having employees check in with their managers beforehand to ensure their work will be completed on time or using tools that help track PTO requests and approvals, dates, and other important information managers need to know.

What are the downsides of unlimited PTO?

Unlimited PTO may not work at some companies, especially those with many employees who work shifts that need to be covered. Here’s why the policy can fall short for certain businesses:

  1. Unlimited PTO can leave businesses understaffed – if employees take leave at the same time, there may be holes in the work schedule leading to poor customer service.
  2. The policy can be hard to manage – Organizations must follow certain legal requirements and guidelines, which can distract from other important action items.
  3. Employees may feel resentment towards each other – If some employees take 60 days off a year and others take two weeks, the discrepancy can cause resentment among employees and managers.
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