Effects of Unlimited PTO on Employee Well-being

As SaaS professionals, we often pride ourselves on fostering progressive workplace policies that promote flexibility and work-life balance. One such policy, Unlimited Paid Time Off (PTO), has been a hot topic in our industry. While it sounds ideal, it's not without its pitfalls. In fact, unlimited PTO can sometimes lead to fewer days off, as team members may feel uncertain about how much is "too much" or fear being perceived as less committed. 🔍 The Paradox of Choice: Unlimited PTO offers freedom, but this very freedom can create an unspoken pressure. Employees might hesitate to take leave, leading to burnout – the exact opposite of what this policy aims to prevent. ✨ Tips for Managers: 1️⃣ Lead by Example: Demonstrate the importance of taking time off by doing so yourself. When leaders prioritize their well-being, it sets a precedent for the team. 2️⃣ Clear Communication: Regularly encourage your team to take PTO. Make it clear that taking time off is not just allowed, but expected and valued. 3️⃣ Set Boundaries: Establish guidelines for how PTO should be requested and approved. This clarity will alleviate anxieties about taking leave. 4️⃣ Monitor Workloads: Keep an eye on workloads to ensure they're manageable and don’t inadvertently pressure employees into forgoing PTO. 5️⃣ Promote a Culture of Respect: Foster a team environment where everyone's time off is respected. This means no emails or calls during someone's PTO, barring emergencies. 6️⃣ Check-Ins: Have regular one-on-ones where you discuss not just work but also well-being and work-life balance. This can help identify any hesitations about taking PTO. 7️⃣ Encourage Mini-Breaks: Not everyone might want to take long vacations. Encourage shorter breaks or days off to recharge. ✏️ Looking forward to hearing your thoughts and experiences with unlimited PTO in the comments! #MarketingLeadership #WorkLifeBalance #EmployeeWellbeing #UnlimitedPTO #TeamManagement

"Unlimited PTO" = Limited by fear A recent study of 1,000+ companies revealed: - Workers with "unlimited" PTO take 2 fewer days off annually - 48% of employees leave vacation days unused - Only 1 in 5 feel safe taking over 15 days Here's what "unlimited" really means: - "Figure out the unwritten rules yourself." - "Guess what's actually acceptable." - "Risk being labeled uncommitted" The Hard Truth: Without clear boundaries, anxiety fills the void. Real companies don't need mind games. They set clear expectations and celebrate rest. Because psychological safety isn't built through vague policies. It's built through consistent, protected boundaries.

Unlimited PTO gets a bad rap. But when the context is right, like it is for me at HubSpot—supportive boss, silenced Slack, permission to lock my perfectionist tendencies in a drawer for a week and a half—it means I get to celebrate my baby sister’s bachelorette, hug my aunt in hospice, and meet a friend’s new puppy without having to assign a value to that time. That hasn’t been the case at every workplace, and I think that’s what leaders sometimes forget—the emotional arithmetic of those hours for employees. Weighing an afternoon walking around the High Museum with a friend versus staying through the weekend of Thanksgiving to spend time with your brothers. Debating whether to take a mental health day now or wait in case February breaks you. Trying to Jenga every family member and friend and activity into one limited block of time until you’re so exhausted you can’t be present and enjoy it. I can’t speak for caregivers, but I can say the equation is even more difficult. Time is a gift. If you’re one of my fellow unlimited PTO havers, take at least a week at a time, not just a day here and there. And if you’re someone who gets to make decisions about people’s benefits, recognize the opportunity in front of you to be a hero and throw in some extra (paid) days.

I’ve experienced a smorgasbord of time-off policies. 👀 In the newspaper and higher education world, it was accrued time-off policies that were about as appealing as a fax machine in the smartphone era. At one job, I had to work there for six months before accruing three days. 🥴 In tech, I’ve either had access to a bank of PTO days or the more prevalent unlimited PTO packages. There are flaws in all of these scenarios. 🗓️Accrued time off: Yeah, it's been around since the dawn of office time. But it's like playing Tetris with vacation days. HR has spreadsheets, employees have unused balances and employees hoard their accrued time off. This leads to large, unused balances that strain company finances when they eventually cash out. Not to mention that workers are burned out because they want that exit "bonus.” 🏦An annual bank of PTO: Employees of this “use it or lose it” camp rush to spend their remaining days at the end of the year, causing scheduling conflicts and productivity dips. 🌴Unlimited PTO: Without clear guidelines, some employees might take excessive time off. More likely, though, is that employees feel pressured to take less time off than they need, fearing they will be seen as less committed. ⚖ Here's my take: Unlimited PTO with guardrails! Employees MUST take at least two/three weeks off per year. It's the best of both worlds—freedom with responsibility. ⚖ Promotes work-life balance: Mandating a minimum number of days off ensures that employees prioritize their well-being and maintain a healthy work-life balance. Prevents burnout: Without a minimum requirement, employees might push themselves too hard. Requiring a set number of days off helps employees recharge, relax and come back to work refreshed. Consistency: Setting a minimum number of days off per year ensures that everyone gets a chance to rest, reducing the risk of some employees continuously working without breaks while others take advantage of the policy. Leadership by example: When leaders within the organization take their mandated time off, it shows that taking time off is not only allowed but encouraged, fostering a healthier company culture. Retention and engagement: Employees who feel supported in taking time off are more likely to stay with the company. High retention rates save time and resources on recruiting and training new hires. Customization: Managers can work with employees to plan their time off according to their specific needs and the needs of the team. This level of customization leads to more effective time management and coverage planning. Thanks for inspiring this post, Madeline Mann! What is the best PTO policy you’ve had at a job? #pto #employeebenefits #ThatAshleyAmber

A manager's guide to Unlimited PTO policies: 1. Guiding principles... - Manage to outcomes, not hours. - Assume positive intent - Respect boundaries. 2. To tell the team... - Circulate that your version of PTO 'fairness' is people getting what they need to perform at the highest-levels and that's different for everyone. - Circulate any preventable lapses in overall team performance caused by PTO. (Ie. Someone has to cover the phones...) - 'Teammates are the ones most affected by PTO so when you tell me about your PTO, also tell me that you've worked out coverage with your teammates in advance.' (You know who is going to cover the phones...) - I prefer X days notice before taking PTO, but understand that things happen. Try your best to plan in advance. 3. To keep in your mind... - You'll never be the best person to manage someone else's time. Be diligent about managing & measuring outcomes so that you don't get drawn into managing days / hours. - Be sure to understand and lookout for signs of burnout and exhaustion. Encourage your team to take time off. - Be sure to spot & coach around time management skills, outside of PTO requests. - Assume that everyone wants to build trust and they're not out to exploit the unlimited policy or screw anyone, including you. - Get to know your direct reports personally. Ask about their lives. Care about their answers. - Sometimes people will tell you details about their PTO, sometimes they won't. Respect both with privacy and care. --- That's it! You'll never have to approve or deny PTO. ...I've never had an issue with someone exploiting the system and to my knowledge, everyone on the team thought the system was fair. I've had 2 instances where extended time off was needed due to health concerns and those were difficult and sensitive situations to handle that could not be 'policed' by me in advance. If you run into that, ask an HR pro. #PTO #unlimitedPTO #manager #managerguide #managersguide

Over the last few years, I've always heard unlimited PTO marketed as the best thing on earth, but the reality of it is that it never really *is* unlimited PTO. Go ahead and look up any type of Glassdoor review on the topic - it's a sham. What it comes down to isn't the amount of holiday they are allowed to take. It's the idea of asking for any holiday at ALL. There are clashes, or there's an important project, or there's a toxic culture where everyone lives at work, no matter the project or client. This is where I think we need to start talking about MANDATORY PTO. If you're offering unlimited PTO as an employer because you're *genuinely* worried about the well-being of your employees, you need to look after them. Not expect them to look after themselves. We actually have a policy at MSH where if you work, you know, 2 months consecutively in business days - we force you to take a day off. Not because we don't think you're capable of taking the day off yourself - we just know that's not how we've all been conditioned to act at work. We know that unlimited PTO will come with its own set of politics, and, quite frankly, that's just something that we don't have time for. Taking the decision out of their hands might seem a bit forceful, but really, it's just a gentle nudge to remind them to look after themselves. After all, they've spent so much time looking after the company, it's the least we can do. Right?