Unlimited PTO: Too Much or Just Right?

It may sound like overkill from a human resources standpoint, but offering unlimited paid time off is something more and more businesses are beginning to develop for the well-being of their employees, and the mutually beneficial flexibility. This innovative perk is also a step in the right direction when it comes to work-life balance, understanding the importance of individuals’ lives outside of an office setting.

So long as employees are well aware of the amount of time they must devote to their jobs in order to be successful, giving them the opportunity to take a day or few hours off whenever necessary should rarely backfire. Whether an employee is going on vacation, has a family event, is sick, or experiences an emergency, they and their manager can rest assured that going over their amount of PTO provided would not be an issue. In fact, unlimited PTO can actually increase productivity due to the lack of stress that comes with it.

Every successful business encourages a devoted, productive mindset among its staff. Promoting the idea of individual efforts contributing to the overall goal gives a good idea as to just how important each employee’s responsibilities are. Combine that with the ability to take time off whenever they’d like, and team members will likely be more inclined to work harder, now alleviated of the stress of PTO. This can tie in directly to working remotely and working different hours in which one might be more effective than the traditional 9 to 5.

Should you as a business owner or manager decide to implement this modern work benefit, communicate with your staff regularly regarding policies, abuse of this perk, and planning. Employees should understand that this is not something to be taken advantage of, but rather a tool that allows them the freedom to take off or leave early for any valid reason. Working for a business that cares about its staff’s wellness can translate to increased productivity, retention, and growth.

However, like every aspect of business, there are potential disadvantages that come with unlimited PTO. As mentioned, employees could, in theory, take advantage of this perk and take over a month off or more in a given year. Another potential risk is a high number of employees coincidentally taking the same week or days off. But, planning and a clear explanation of the guidelines that come with this policy can prevent any major risk.

Work with your employees and discuss what you expect from them as an understanding of this major benefit, and how as long as they reciprocate through the amount of work they put in, they can continue to enjoy unlimited PTO.