Highlights:

1. Supplying unlimited PTO with mandatory minimums promotes work-life balance and prevents burnout.
2. Consider using "Flex" PTO instead of unlimited PTO to alleviate anxiety and promote flexibility.
3. Investing in employees through flexible leave policies fosters trust and passion for work.

In this article, nine human resources (HR) and business leaders share their strategies on offering paid time off (PTO) to employees.
 

1. Supply Unlimited PTO with Mandatory Minimums
2. Try Using “Flex” PTO
3. Weigh the Pros and Cons
4. Consider Emergency Time Off
5. Invest in Employees by Staying Flexible
6. Base PTO on Tenure
7. Use a Leave-sharing Policy for a Smaller Staff
8. Create a Culture of Mutual Trust and Work-life Balance
9. Define Your Leave Policy to Avoid Confusion

 

Supply Unlimited PTO with Mandatory Minimums

We offer unlimited PTO at our company because we want to show employees we trust them to find a work-life balance that works for them.
 
Studies show that when we launch unlimited PTO, employees take less time off, so we mandate employees must take at least two days of leave per quarter.
 
We do not want employees getting burned out, so forcing some days off has helped us ensure the unlimited PTO model does not cut in the wrong direction.

Brett Ungashick, CEO and CHRO, OutSail

 

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Try Using “Flex” PTO

Unlimited PTO is a backhanded tactic for employers to guilt employees into working more. The "unlimited" wording is clever branding for the company to seem generous, but in reality, unlimited PTO often makes people feel anxious and awkward about requesting time off.

Companies should clearly define their vacation policy expectations. We have implemented an ethical version of "Unlimited" PTO that we call "Flex" PTO—it is unusual, but everyone loves it.
 
People get a base allowance of PTO for holidays and sick days. Our company calendar officially follows standard U.S. holidays, but people can use their days off on any day they choose. Do not celebrate Christmas? No problem—you can work that day and take another day off instead.
 
We allow people to earn additional PTO and they can take an extended vacation. If you work all week and put in an extra full day on Saturday, you can add that to your PTO balance for a holiday in the future.

Justin Pincar, Co-Founder and CTO, Achievable

 

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Weigh the Pros and Cons

We believe that a set number of PTO days is more structured and manageable. In addition, unlimited PTO can lead to some employees taking advantage of the policy by taking more days off than they need.

However, we offer generous PTO policies so that our employees can take time off without worrying. Overall, unlimited PTO can be beneficial for some businesses, but it is important to weigh the pros and cons of an unlimited PTO policy before implementing it in your business.

Preston Powell, CEO, Webserv

 

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Consider Emergency Time Off

We do not offer unlimited PTO in our business. As we have a relatively small crew, we must be sure about who is on the schedule. Missing team members can have a negative impact on the business, and we must be ready to react when it is necessary.

While all team members can multitask, no one can do everything and we cannot take the chance of an important task going undone because a team member has taken the day off.

In place of unlimited PTO, each employee has eight hours of emergency time off per month. This time is for emergencies only, but if the staff does not apply this time during the month, we pay the remaining balance at the normal overtime rate.

Andrew Pierce, Founder, Real Estate Holding Company

 

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Invest in Employees by Staying Flexible

Flexibility means letting employees take rest days whenever they see fit. One way to enforce it is by offering an unlimited PTO where they can take work breaks without being forced to return to work because of limited vacation allocation.

This allows them to have enough personal time or recover from sickness in case they run out of their standard sick leave credits. Our company provides unlimited PTO or flexible leave credits because we want to show our employees that we trust them with their time.

This gives them the impression that we value their experience and makes them more passionate about working for the company in the long run. Unlimited PTO gives employees a chance to spend time with their families or on other important things that promote work-life balance.

Riva Jeane May Caburog, PR and Media Coordinator, Nadrich & Cohen

 

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Base PTO on Tenure

At our company, we do not offer unlimited PTO. We believe that a set amount of PTO provides structure and clarity for our employees, and it helps us manage resources more effectively. Our employees receive a generous amount of PTO based on their level and tenure with the company, and we encourage them to use it to rest, recharge, and pursue their personal interests.

We also believe in transparency and fairness for PTO. The PTO policies are clear in our employee handbook, and we communicate any updates or changes in a timely manner. We also encourage our managers to be flexible and accommodating in scheduling PTO requests, as we understand the importance of work-life balance for our employees.

Overall, while we understand the appeal of unlimited PTO, we believe that a structured and transparent PTO policy is the best fit for our company and our workforce.

Derek Bruce, Senior Director, Newcastle First Aid Courses

 

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Use a Leave-sharing Policy for a Smaller Staff

Unlimited PTO can be a good way of increasing flexibility within a company's workforce. We can eliminate the potential for misuse and unequal distribution of entitled leaves with proper guidelines in place.

It is also an excellent strategy for attracting top talents in search of flexible work. However, our company simply cannot follow this trend as of now. With fewer than 15 employees, our company will have a tough time managing its workload if we offer unlimited PTO.

For instance, having half of our workforce on leave for more than a week would mean that our content volume will go down by 35%. Also, even if we follow the trend in most companies in the UK that offer 32 days of PTO and call it "Unlimited PTO," that is still time we simply could not afford to give.

Instead, we implemented a leave-sharing and leave-pooling policy as an alternative. Unlimited PTO is still a leave policy that we might implement should we grow in the future.

Jonathan Merry, Founder, Moneyzine

 

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Create a Culture of Mutual Trust and Work-life Balance

Our company's unlimited PTO policy stems from creating a company culture of mutual trust and work-life balance. We always communicate to our employees that taking sufficient time off is favorable for them and the company.

It is about minimizing workplace burnout and knowing that using their PTOs does not translate to being lazy, selfish, or incompetent to their colleagues. It is a great indicator of whether your company respects employees' decisions to make the most of their PTOs without disrupting the workflow or operations within the organization.

Grant Polachek, Head of Branding, SquadHelp

 

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Define Your Leave Policy to Avoid Confusion

We currently do not offer unlimited PTO at our company. We believe that having a defined policy and structure in place for vacation days allows employees to plan their time off more efficiently, ensuring both job satisfaction and productivity.

By offering set amounts of days off per year, we can better manage vacation schedules across departments and teams.

Michael Dadashi, CEO, Infinite Recovery

Author Bio

Brett Framiloe is the Founder / CEO and currently the CHRO of Terkel. Brett is an SHRM influencer and has also been a keynote speaker at several state SHRM conferences around the topic of employee engagement.

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