13 Nov The Pros and Cons to Unlimited Paid Time Off
As you search for your dream job, you may be on the lookout for many benefits such as unlimited paid time off. While this perk is rare, there are some companies like Eventbrite, General Electric, and Groupon that offer unlimited vacation time.
Why are some companies jumping on board and offering unlimited PTO? Are there drawbacks to this decision? Here is a look at some of the pros and cons of unlimited paid time off.
Pro: It Improves Employee Engagement Levels
Vacations give your employees an opportunity to rest. It allows them to clear their minds. By taking this time, they feel happier, more creative, and are more productive at work. They are more engaged and experience less burn out than when they are working 40 or more hours each week. It also gives them something to look forward to and more freedom with their time.
Con: Employees May Be Gone Too Much
When offering exceptional benefits like unlimited paid time off, you must be wary of those employees who will abuse the policy. They may take dozens of days off throughout the year because they are not afraid of losing their jobs. This means you could be left shorthanded more than once.
On the other hand, research also shows that by offering this unlimited PTO, people are taking even fewer vacations. With this policy, it can be hard to find a good balance.
Pro: No More Paying for Unused Vacation Days
With unlimited paid time off, companies don’t have to worry about paying employees for unused vacation days. At the end of the year, when an employee quits, or when you change policies, if employees have unused PTO, your company gets to pay the difference. This not only costs the company money but it takes away time from your staff members to cash them out. With unlimited vacation days, you save time and money.
Con: Can Create Tension in the Workplace
If you have employees who take more time off than others, it can create tension and friction in the workplace. It can leave employees frustrated if work is not completed, the individuals they need are not available, etc. It can make an impact on your office culture.
Pro: It Increases Your Candidate Pool
Unlimited PTO is a benefit many individuals desire. If your company offers this perk, when you have job openings, many individuals want in and will apply. This leaves you with a much larger candidate pool during your hiring process.
Con: Chaos in the Office
With unlimited PTO, there is less regulation when it comes to who is taking off certain days. This means that you could have an entire team away from the office or just one or two individuals picking up a large amount of the work. When many employees are gone at once, this leaves projects sitting, customer upset, communication weakening, and much more.
While there are certainly many benefits to unlimited paid time off, before you rush to work in a company with these perks, do your research. Make sure this is a benefit you truly want, will use, and will make you happy.