paid time off

Should You Consider Offering Unlimited PTO?

June 12, 2019 By: Dave Rietsema
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For employees, unlimited PTO sounds like a dream come true. They can take off as much time as they want. They don’t have to worry about sick days or taking a longer vacation. For employers, offering unlimited PTO helps attract top talent by making the company look like a progressive and attractive place to work.

But is unlimited PTO really something you should consider offering?

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Abusing the System

While most of your employees will take only the time off that they need, there is always the risk that some may abuse the PTO system. This could result in some employees taking off work for up to months at a time with no repercussions. It’s important to make adjustments to an unlimited PTO policy as needed to prevent abuse.

Avoiding Burnout

Many employees don’t take enough time for themselves. With unlimited PTO, they may feel more comfortable taking a few days off when they need it. These employees can take the rest and breaks they need to come back refreshed and more productive.

Another advantage is that your employees will feel valued and trusted. An unlimited PTO policy shows staff that the company trusts them not to abuse the generous PTO policy.

Saving Money

A company offering unlimited PTO often ends up saving money at the end of the year. Most employees don’t take all of their allotted PTO. They’re then owed a payout for unused days if those days don’t roll over to the next year.

With an unlimited PTO policy, the company doesn’t have to pay out any money for unused days. This makes offering unlimited PTO a better deal for the employer than the employee. However, your company should encourage employees to take breaks when they need it. They’ll be more productive and efficient if they take at least the amount of vacation time they would receive under a normal PTO policy.

Scheduling Difficulty

A downside of offering unlimited PTO is that it can be a scheduling nightmare. Your managers may have trouble scheduling PTO if more than one employee takes it at the same time. This is especially difficult if you have any employees who are abusing the system.

It’s a good idea to require PTO to be requested, even if it is unlimited. This allows your managers to schedule PTO so that there are enough employees in the office to run each department. This can also limit the amount of PTO that an employee takes at once.

Setting Clear Expectations

If your company is implementing an unlimited PTO policy, it’s important to make the expectations clear from the beginning. A clear policy that all employees understand can help prevent problems from arising.

Are you looking for an ATS that will help track your employees’ PTO? Let Applicant Tracking Systems help you find the software that will meet your needs. Visit our vendor match page to begin.

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