Unlimited PTO | Workplace HCM

Is Unlimited PTO Right for Your Employees?


When Considering Benefits, Is Unlimited PTO a True Option for Your Workforce?

In today’s climate, employers are competing to attract top talent. They are looking for every option available to ensure they get the employees they want in the positions they need.

One way to compete for talent is by offering amazing benefits. Options such as great health insurance, childcare, tuition reimbursement, retirement planning, and PTO are necessary tools to attract the best of the best. Many companies are playing with the idea of unlimited PTO to entice employees to come work with them over the competition.

However, unlimited PTO is not for everyone. It works for some industries. However, others find it a burden more than a benefit. How do you know if it is right for your workforce?

What Is Unlimited PTO?

Unlimited PTO is the newest concept in employment benefits. It allows employees to take paid time off from work whenever they need it, without worrying whether they have the time available to them. The assumption is that employees can take paid time away from work as long as they have all their work done as needed and on time. Rather than looking for busy work or having limited sick days and paid time off, they can leave early or take a vacation or sick time whenever they need.

The benefit works well as an honor system. Employees learn that they cannot take the time off if they cannot get their work done and meet their necessary deadlines. The concept is a wonderful perk that looks great on paper. However, it only works in certain employment environments and under certain circumstances.

Who Benefits from Unlimited PTO?

Many service-oriented employees may benefit most from unlimited PTO. If employees have a service or product to produce that does not depend on contact with customers and clients, they may benefit immensely from unlimited PTO. These employees can learn to become self-starters and ensure they work effectively and efficiently to make the most out of having the ability to take time off from work whenever needed.

Their employers will also benefit immensely from offering unlimited PTO. Typically, employees in these positions care about their work product. Therefore, they will work to ensure they have everything tied up before taking time off. They will feel appreciated by having the ability to take time off as needed, Therefore, they will work harder when asked or when it is warranted.

What Are the Downfalls of Unlimited PTO?

Unlimited PTO does not help everyone. Employees that work on commission need to cultivate relationships at all times. They may find that too much time away from the office prohibits them from cultivating these relationships, which in turn affects their ability to earn a commission. These employees may find they take less time off than permitted. Therefore, unlimited PTO is often wasted on them.

Sometimes, employees may worry that if they are taking more time off than their coworkers, they will face negative consequences. They may feel that the time off is a test and utilizing it too often, even if they get all of their work done, will cost them privileges or their job. It almost creates a herd mentality in the workplace that keeps everyone from taking their allowed time off.

Of course, in some workplaces, people will take advantage of unlimited time off, without getting work done as needed. While they likely would not last in such a workplace, they can cost time, resources, and money until they are weeded out.

Is Unlimited PTO Right for Your Workplace?

Unlimited PTO is not a good fit for every workplace. You must consider your work environment and the employees you wish to attract. Consider if unlimited PTO is a waste because your employees will not take time off as needed. Consider if too many people will take advantage of the benefit.

It is best to consult with your HR department or team to determine if unlimited PTO is a benefit worth exploring. If you are looking for an HR team to help you manage benefits, onboarding, and other human capital concerns, contact the experts at Workplace HCM at  (888) 570-1122.


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