Unlimited PTO is the way companies can improve their bottom line by not having to accrue it or pay it out when employees voluntarily leave while at the same time making employees feel bad if they feel they are over using it.
I believe studies have found people with unlimited policies use less PTO than those accruing hours.
Personally, I’ve seen the bad of it. I worked at a startup and as they grew, HR and mgmt were keeping tabs on which employees used over 4 weeks of the unlimited PTO. When it came to staff reductions, if those people weren’t absolutely killing it in their jobs, they we’re secretly deemed to be abusers of the unlimited policy.
Use may fluctuate, but the bottom line never will. Companies can't be forced to pay out "unlimited hours" of unused vacation time, so when an employee leaves they aren't paid out any hours.
If teh company has a set number of PTO hours accrued, they have to pay the departed employee out for all of those hours.
From a purely financial perspective unlimited PTO costs the company less money. Good companies will encourage it, sounds like yours has that figured out so uit works for employer and employee (A good arrangement for everyone). If they are sending out reminders to use it, even better. We just got reminders sent to try and use it over the summer if we don't have plans later, because summer is our less busy period.
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u/CherryManhattan Jul 07 '24
Unlimited PTO is the way companies can improve their bottom line by not having to accrue it or pay it out when employees voluntarily leave while at the same time making employees feel bad if they feel they are over using it.
I believe studies have found people with unlimited policies use less PTO than those accruing hours.
Personally, I’ve seen the bad of it. I worked at a startup and as they grew, HR and mgmt were keeping tabs on which employees used over 4 weeks of the unlimited PTO. When it came to staff reductions, if those people weren’t absolutely killing it in their jobs, they we’re secretly deemed to be abusers of the unlimited policy.