Does your company offer unlimited paid time off?
American tech workers love the idea of unlimited paid time off. In a recent MetLife survey, unlimited PTO is the #1 most valued emerging employee benefit that candidates are most interested in, when considering a new role. 50% of US workers would prefer unlimited PTO over a higher salary.
Many companies are warming up to this growing trend. According to a U.S. News survey of 200 large companies in the finance, technology and digital media industries, 20% offer unlimited PTO. Of those, 15% are technology companies. Other companies are expressing obvious concerns about implementing it. What would keep such a policy from being abused by unscrupulous employees?
It’s an interesting conversation to follow, because modern American workers have a lousy track record of taking time off- whether they need it or not.
The companies that include PTO in their benefits package typically offer between 5 and 15 days of PTO per year, and 54% of workers don’t take all days available to them. In 2018, Americans forfeited 212 million days of vacation time, which is equivalent to $62.2 billion in lost benefits. (Not to mention, 28 million Americans (31% of US workers) don’t get any type of paid vacation or paid holidays.)
Why are so many workers looking for boundless time off when they don’t always take time off anyway? It’s like being a sneakers gal and asking for a pair of Jimmy Choo’s that you never intend to wear.
American workers are recognizing the growing imbalance between their professional lives and… everything else. They’re looking for the reset button. Unlimited PTO could take the stigma off prioritizing work/life integration.
For context, most countries have a norm of 4 weeks paid time off. The United States is the only advanced economy in the world that doesn’t require companies to provide paid vacation to employees. A recent report, which reviewed data on laws governing annual statutory paid leave and paid public holidays in 197 countries, determined that the United States is the second worst country for paid vacation days. They don’t call us the No-Vacation Nation for nothing.
American work(aholic) ethic doesn’t translate well in other cultures because the benefits to time off are clear. We need to disconnect from work to bolster our health, creativity and mental focus. A study from Stanford University found that productivity per hour declines sharply when a person works more than 50 hours per week. After 55 hours, productivity drops so much that adding hours is pointless. Someone who works 70 hours per week is getting the same amount of work done as someone who works 55 hours.
Our work culture prior to the pandemic glorified burning the candle at both ends. There was a negative spin on taking time off. Workers didn’t want to be perceived as a slacker because they might miss out on a future opportunity. Most U.S. companies have an “employment-at-will” policy- they can fire an employee for any (or no) reason unless there’s a written contract, the employee is a member of a labor union or discrimination is involved in the decision. This means that arbitrary firing is a real concern for Americans. Nobody wanted to be abruptly replaced or be seen as expendable. Others felt like they couldn’t step away because they had too much to do.
With the pandemic in our rear-view mirror, many are rethinking a work culture that’s unsustainable. Work/life integration is recognized as a necessity. A strong work ethic is admirable. Workaholism is foolish.
Time off isn’t a reward for accomplishing a goal. We incorporate time off into our systems, not into our incentives, because it reflects our values. Not our performance.
Unlimited PTO may be an ideal solution to recalibrate bad U.S. work habits, for the purpose of facilitating a healthier and more productive workforce. It’s a statement of a cultural value, not a perk.
If your company decides to offer unlimited PTO, the value of work/life integration needs to be reflected in your culture. You may need to make a few changes to ensure that the transition maximizes the benefits to the company and the workers.
1. Job descriptions are clearly defined. Everyone understands what results they’re responsible for. They know how to do their job, and they understand how their contributions fit into the company’s Big Picture. This ensures a healthy distribution of the team’s workload, and that no details fall through the cracks when an employee is taking time off.
2. Standard Operating Procedures (SOPs) are written and accessible to all team members. Anyone can pitch in during someone’s absence, minimizing decision making bottlenecks.
3. Implementation of unlimited PTO assumes common sense. Leaders are encouraging a culture of collaboration, delegation, and reciprocity. Expectations are explained, and guidelines are understood. Unlimited PTO doesn’t mean that employees can leave whenever they want, for however long. That wouldn’t be kind to their co-workers, and it isn’t always possible to leave when a new product is launched or you’re expanding into a new market. People need to plan ahead and coordinate with other team members. What work needs to be wrapped up before departure? Who will cover for them?
Are you considering offering unlimited PTO? Is your company culture set up to facilitate this value?
I’d love to connect! Reach out and book a call- we can evaluate your systems. I can help you identify the changes you need to make. By incorporating unlimited PTO into your structure, you can prioritize work/life integration so that your employees can thrive.
