Employees with unlimited paid time off (PTO) are not given a specific number of paid days off at the start of the year. Rather, they can take leaves when they need them as long as it does not disrupt the company’s operations. This gives the employee a lot of flexibility and compensates them for making good use of their time.

What are the benefits and drawbacks of unlimited PTO?

What is Unlimited PTO

Employees with unlimited PTO can take as much vacation time as they desire; however, it should not interrupt their ability to accomplish their work.

An employee is free to take leave as long as their job meets their employer’s requirements and they have planned their absence with others to ensure that their work is not disrupted. 

Most organizations still have limits for obtaining PTO, so having unlimited PTO does not mean a person may show up for work whenever they want. The policy essentially avoids imposing a clear limit on how much time an employee can work each year.

How to Use PTOs

If you’re not used to taking more than a handful of weeks off per year, you might be unclear how to tackle unlimited PTO. If you work for a company that offers unlimited PTO or are considering an offer from one, here’s what you should do when you need time off for non-emergency reasons.

Understand Company Policy

Every company has its own set of guidelines for implementing unlimited PTO. Hence, it becomes essential to understand rules and regulations that apply to your time off. To remain in good standing, you must understand the specific process for requesting leave. As you go through the rest of the processes, make sure you’re following your company’s unlimited PTO policy.

Plan in Advance

Even if you can take as much time off as you like, it’s still important to use that time wisely. It is vital to plan if you’re going on an extended leave for several days or weeks. Therefore, it is advised to start planning as soon as you decide to take time off. This way you will have more time, and you and other people associated with you will be better prepared.

Speak with Co-workers and Management

Your company’s policy is likely to include guidelines about giving advance notice before taking PTO, but even if it isn’t required, it is an excellent policy to plan and give people heads up. It is an excellent choice to have a conversation with any co-workers with whom you have regular encounters in addition to your manager. This guarantees that if they require anything from you during your absence, they will be informed in advance and will be able to arrange accordingly.

Advantages of Unlimited PTO

Efficient Time Management

It can be simpler to stay focused and manage your day when you have unlimited PTO since you know that if you finish your work faster, you can take more time off.

Increased Productivity

Unlimited PTO not only encourages you to make the most of your time at work but also makes it easier to do so. When you have the flexibility to take off on the days of your choice, it enables you to relax and relieve stress in a much better way. It also enhances your efficiency when you return to work at the end of your vacation. This makes it easier to keep ahead of your competition.

No Urgency in December

If your business offers annual PTO but no rollover, you may find yourself rushing to use leaves before the end of the year. Not only is this an inefficient approach for the business because many employees leave at the same time, but the end of the year may not be the best time for you to take vacation days. This can result in you either wasting days by not taking them or putting pressure on yourself in the days leading up to or following your time off.

Disadvantages of Unlimited PTO

Potential for Abuse

Although you are responsible for your use of unlimited PTO, employees can misuse the system. If one or more of your co-workers takes an excessive amount of time off, you may find yourself with an increased workload because of having to cover work while they are away.

Absent Employees

Though flexibility in taking time off when your work schedule permits is beneficial to you, having others take time off might make your day more difficult. With limitless paid holidays, employees will spend more time away from the company, increasing the likelihood that a co-worker you require will be unavailable.

Making Unlimited PTO Work

Unlimited PTO does not mean that employees are allowed to go on vacation without any accountability to their jobs. In an environment where people are treated like adults and are expected to act as adults, the level of personal accountability to each other and the company increases exponentially.

In this kind of trust based self-managed environment you’ll have a hard time finding any individuals abusing unlimited PTOs. On the contrary they become a tool for people to work hard and smart by getting enough rest to recharge properly.

“Productivity increases significantly when people are not stressed.”

Unlimited PTO works well in freedom-based organizations, where people treat each other like responsible adults. To learn more about these kinds of organizations check out RadicalPurpose.org.