There are three paid time off options to offer your employees: traditional, flexible, and unlimited. While there are pros and cons to all three options, unlimited PTO is a swiftly growing trend for many of the most competitive companies. Here’s everything you need to know about this popular policy.
The Pros:
Easier for HR departments
It’s important to note that paid time off is not purely vacation. This can include bereavement, sick days, vacation time, parental and family leave, short or long-term disability, and holiday pay– and keeping track of each of these allotments can become a logistical nightmare for HR departments. With unlimited PTO, while there should still be a system in place for approving time taken off, HR departments will not be bogged down with tracking and reinforcing hours taken and hourly limits of each category.
It’s surprisingly cost-efficient
Assuming employees don’t abuse the policy (which hasn’t historically been an issue– check the “con” list below for more information on this), unlimited amounts of PTO can save your company money. When there exists a specific amount of time that can be taken off, many employers will have to pay out the vacation days that aren’t used by the end of the year (or the end of employment, in some cases). With unlimited PTO, you will not be expected to pay out your employees for any vacation days not taken.
It’s a recruitment tool
As aforementioned, many larger and competitive companies are offering this PTO policy as an attractive recruiting tool. Unlimited vacation sounds good to everyone– including top candidates. In fact, in a recent PTO survey, 51% of participants indicated they would take a job for 10% less pay (all else being equal) if unlimited PTO was available.
Learn More: https://www.zenefits.com/workest/unlimited-pto/