Skip to content

Should You Offer Unlimited PTO?

After the COVID-19 crisis, many companies are considering switching to an unlimited PTO policy. After the uncertainty of the past few months, it is important to discuss what is best for your employees and your company. There are many advantages to an unlimited PTO policy and some disadvantages. What works best for every company is different, but it is crucial to stay up-to-date with policies in the current job environment.

Unlimited Paid Time Off (PTO) plans usually have no given allotted number of days that employees can take off. Employees can take as many vacation, sick, emergency, and mental health days as they need as long as they keep up with their mandatory work and keep up with performance goals. Unlimited PTO plans usually require supervisor approval beforehand, except in cases of sickness or family emergencies.

If you’re worried about your employees taking too much time off, many studies have shown that employees with unlimited PTO still take roughly the same amount of time off as those without it. So why do you need it? Trusting your employees to take time off to take care of themselves allows for a more positive work environment.

There are several advantages to an unlimited PTO plan, as it fosters a trusting relationship between you and your employees and encourages responsibility. Unlimited PTO reduces the likelihood that employees will come to work when sick, something we all have heightened awareness of because of the pandemic. Depending on your state laws, it saves you money because days off are no longer accrued, and you don’t have to pay out vacation time when an employee leaves the company. It also looks like an attractive benefit when recruiting job candidates.

While there are advantages, there are also some disadvantages. If an employee seems to be taking off too much time and is no longer meeting productivity standards, it can be hard to terminate them; they were technically given the time off. Establishing and reviewing performance goals can mitigate this issue. It will also still be necessary to track time to prove that employees are taking time off in compliance with regulations.

Unlimited PTO plans are a great way to increase responsibility and trust within your company. With the ongoing COVID-19 crises, many companies and employees wished they had this plan in place. It’s never too late to switch, but what is best for your company is ultimately up to you.

CEO Solutions logo

About Us

To do that which significantly positively impacts our clients and their teams to enhance their value, capability, and impact on our world