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What is an unlimited PTO policy?
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Companies need to keep pace if they want to attract and retain the best and brightest.
Along with salary, and healthcare benefits, one of the perks they use to remain competitive is vacation time. Top talent considers Paid Time Off (PTO) a significant factor when deciding whether to accept a job offer. Employers also use PTO as a means of generating staff loyalty. The longer you work for a company, the more yearly vacation you accrue.
Even before the pandemic, companies began reevaluating employee benefits, including how to allocate PTO. Larger tech-based firms like LinkedIn, Netflix, and Hubspot started moving to an unlimited PTO model in 2015.
The idea is that organizations give their employees as much time off as they want so long as staff members meet their productivity targets. Since then, the popularity of an unrestricted vacation policy has been gaining steam, especially in the face of recent staffing shortages and changing expectations among Millennial and Generation Z job seekers.
For employees, it may sound too good to be true. But what are the pros and cons of unlimited PTO? Let's examine how an unrestricted time off policy can improve productivity, boost feelings of engagement with work, and, most importantly, foster a healthy work/life balance.
An unlimited PTO policy allows staff members to take as much paid vacation as needed. Most policies rely on staff to complete their work ahead of time or organize who will cover for them in their absence.
Many early adopters in the tech industry had a flexible working culture that allowed them to lead the charge. Their success and the Great Resignation are causing the more traditional companies to consider how business culture and employees’ work-life balance affect retention. That focus has more companies evaluating and embracing the concept of unlimited leave.
Some employees would even prefer PTO over a 10% raise, according to a Deloitte report. The added flexibility makes it easier for employees to manage their work-life balance. To match fears of employees taking fewer days since they aren’t required, some companies are enforcing minimum vacation to limit burnout and up productivity.
As with anything, unlimited vacation leave has advantages and drawbacks for both employers and employees. It’s best to be aware of them before basing a job acceptance on PTO.
A generous vacation policy has long been a sought-after perk for employees. UnlimitedPTO offers many benefits that include:
An unlimited vacation policy isn’t without its downsides. Knowing potential pitfalls that come with a seemingly limitless amount of time off can help you better manage your expectations.
So how does unlimited PTO work? While it may seem simple on the surface, if your HR department has decided to implement an unlimited PTO policy, you need to follow the established steps for requesting vacation time. Just follow these steps:
Take the time to learn the rules and processes for requesting vacation leave. Knowing the policy will make it easier to log a request and keep you in good standing with the HR team. If you need clarification on how unlimited PTO works, get the answers directly from your reps.
Talk with HR, management, and coworkers well ahead of your vacation. Communicating your plans will allow senior staff to prepare for your time off and give you an idea of what needs doing before you leave. It also gives you time to loop in anyone covering your role and help them fill in for you seamlessly.
You need to be responsible when it comes to unlimited PTO. Plan and organize your schedule so that time-sensitive tasks and projects will be out of your hands before leaving. You should also coordinate with another team member to manage any unexpected jobs that surface during your absence.
Depending on your seniority, you might be expected to submit a plan detailing who will take over your tasks — which will help you give notice and get organized all at once.
Once HR approves your PTO, you must ensure you perform to your usual high standard. Communicate regularly with your coworkers and supervisors to ensure no surprise tasks require your attention before you leave. Don’t leave a job unfinished or expect the rest of your team to pick up the slack while you’re gone.
The idea of working to live instead of living to work holds true when your company implements an unlimited PTO policy. You’ll be able to access the employee leave time you need to maintain a healthy outlook on your job. At the same time, management will benefit from improved employee engagement and a productive work environment.
Regardless your company’s vacation model, make sure you’re taking advantage of it. Any type of rest is crucial for helping you work toward being a better you.
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Maggie Wooll is a researcher, author, and speaker focused on the evolving future of work. Formerly the lead researcher at the Deloitte Center for the Edge, she holds a Bachelor of Science in Education from Princeton University and an MBA from the University of Virginia Darden School of Business. Maggie is passionate about creating better work and greater opportunities for all.
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