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Unlimited PTO: Pros & Cons of Unlimited Vacation Benefits

February 18, 2020

Ty Gowen

Timer  Read Time: 6 minutes

Unlimited PTO policies have been a popular topic of conversation over the past several years as more and more organizations look for creative and affordable ways to attract and retain talent.

Though offering an ‘unlimited’ policy might sound great on paper, a well-executed program takes a lot more work than simply freeing HR of paid time off tracking and sending your workforce a quick email about the new initiative.

Before you pull the trigger on an unlimited paid time off policy, carefully consider these pros, cons and best practices.

 
 
 

Unlimited PTO Pros

So, what’s the big deal about unlimited paid time off? There are several reasons why adoption is on the rise.

Save Money

One of the primary (though often overlooked) benefits of providing an unlimited PTO policy is potential savings incurred through losing accrued paid vacation time on your company’s liability sheet. Accrued time off is time that will potentially need to be paid out in some form if and when employees leave. Eliminating accrued time eliminates this pesky line item from your balance sheet.

Increase Admin Efficiency

Eliminating the need to track time off will take this burden off the HR team. Even if HR is using an HCM solution that helps automate the process, the team is inevitably fielding and approving requests and questions about remaining days, how accrual works, etc. Eliminating this take will make HR more efficient and allow that team to focus on more strategic initiatives.

Support Recruitment and Retention

Paid time off is consistently ranked as one of the