With businesses desperate to keep their high-performing employees, many turn to benefits to boost engagement and help with retention.
In recent years, PTO has been high on the list of desired benefits, particularly for startups and tech businesses, but is unlimited PTO a scam or is it a benefit worth moving roles for?
What Is Unlimited PTO?
Unlimited PTO is a fairly new concept that allows employees to take off as much time as they need during the year.
It aims to provide employees with flexibility in a way that shows trust and encourages a good work-life balance.
The problem with unlimited time off is that, despite sounding like a dream benefit, it often benefits employers more than employees.
How Much Time Can I Take With Unlimited PTO?
By definition, the time that can be taken with unlimited PTO is uncapped. For many, this benefit sounds too good to be true, and can lead to questions like ‘is unlimited PTO a scam?’
How Rare Is Unlimited PTO?
Being a new, and not always trusted benefit, unlimited PTO is still fairly rare in the US. Around 8% of companies are thought to offer unlimited PTO to employees.
What Are The Benefits Of Unlimited PTO?
Is unlimited PTO a scam, or do the benefits outweigh the drawbacks?
Flexibility
Employees get lots of flexibility with unlimited PTO.
Rather than using a limited number of days to handle appointments, car troubles, and other necessary tasks, employees can use extra days to take care of emergencies and properly enjoy vacation time.
A Better Work-Life Balance
Many employees are seeking a better work-life balance. Unlimited PTO can definitely be helpful for achieving this.
Employees experiencing burnout or feeling fatigued can take some time to rest without worrying about how this might impact PTO later on in the year.
Rather than working a full week at 20% efficiency, employees can take a day and return ready to work the other 4 days at 100%.
Similarly, employees can take days off for more enjoyable activities, improving mood, boosting energy, and helping with productivity.
This benefits both the worker and business.
Opportunities To Take Long Periods Of PTO
Unlimited PTO allows employees to take advantage of once-in-a-lifetime experiences like sabbaticals, longer vacations, and volunteering experiences.
These longer periods of PTO can also have career benefits, with employees able to complete qualifications, work on skills and focus on personal growth.
Trusted By Leadership
Unlimited PTO works best where business leaders completely trust employees to properly use the benefit and don’t try to implement limiting rules and restrictions.
Knowing that leadership fully trusts and respects employees makes for a nicer working environment and allows employees to enjoy PTO guilt-free.
What Are The Negatives Of Unlimited PTO?
What about the drawbacks of unlimited PTO? Why are some employees skeptical about this seemingly good benefit?
Some Take Less PTO
The biggest criticism of unlimited PTO is that employees feel guilty about taking time and therefore take less than those with limited PTO.
Without clear expectations, employees might feel pressured to be always available, even during PTO – negating the intended benefits of the policy.
This phenomenon, sometimes called “vacation shaming,” can discourage employees from taking the time they need. According to a study from INSIDER, 42% of workers with unlimited PTO policies are doing work emails on vacation.
No PTO Pay If You’re Laid Off
Unlike traditional PTO, there’s no accumulation of leave days that can be cashed out if an employee is laid off. This can be a significant drawback for those who rely on accrued leave as a financial safety net.
It Can Be Badly Managed By Companies
For unlimited PTO to be successful, companies need to have a culture that encourages the use of benefits for a good work-life balance.
Where policies are unclear or badly managed by a company, unlimited PTO can be more of a drawback than a benefit.
Unfair or Unbalanced Use
PTO should be fairly used throughout a team or business.
Employees who are seen to be abusing the system can cause problems with peers and other team members who cover their workload during time off.
This can be managed by company policies and a well balanced company culture.
How To Tell If A Company Unlimited PTO Policy Is Positively Handled
- Clear Guidelines – A well-defined unlimited PTO policy includes clear, accessible guidelines on how and when to take PTO, including any limitations or expectations. This transparency ensures that all employees understand the policy and how to utilize it effectively.
- Manager Training – Managers play a crucial role in the successful implementation of an unlimited PTO policy. They should receive training on how to manage PTO requests fairly and efficiently, balancing team needs with individual requests.
- Monitoring And Feedback – Regularly monitoring PTO usage and gathering feedback from employees are essential for the continuous improvement of the policy.
- Healthy Work Culture – A supportive work culture is vital for the success of an unlimited PTO policy. Companies should promote a culture of trust and responsibility, where employees feel empowered to take time off without fear of negative repercussions.
Who Does Unlimited PTO Benefit Most?
Employers seem to come out best when exploring who benefits most from unlimited PTO, but it very much depends on the hiring company, the culture surrounding PTO, and the policies in place.
There’s certainly scope for unlimited PTO to be a desirable benefit, but when applying for a new role, it’s best to discuss the benefit and try and understand PTO policies to understand whether it is worthwhile.
As it stands, many employees who have unlimited PTO take less than those in equivalent roles who have limited PTO.
Is Unlimited PTO a Scam?
So, is unlimited PTO a scam? In short, for many employees, yes.
Businesses can benefit from not paying for unused PTO and employees are made to feel guilty for using this benefit.
When applying for new roles it’s always best to weigh up the pros and cons, including the benefits included. If you find a company with a good culture and high levels of trust, unlimited PTO will likely work well.
Try one of these templates to 10x your chances of landing a role with great benefits.
About the author
Mollie Buttery
Writer | SEO | Articles & Blog Posts | Social Media
Mollie supports ULTMECHE through website growth, social media, SEO, and also other digital marketing tricks. Mollie has 10+ years experience of in house and freelance marketing experience in industries such as Finance, Law, SAAS, Automotive, Building Services, Commerce, and more. Some of her favorite writing topics consist of sports and finance. Mollie has been key to the growth of ULTMECHE’s SEO and digital marketing efforts.