I honestly can’t wrap my head around this no matter how much I read.
In: Economics
It’s a trick.
People who have unlimited PTO end up taking less days off total than people with an allocated PTO. Your co-workers will be annoyed if you disappear for weeks at a time, and I’m sure your boss would say something to you about “dedication” when you get back.
Additionally, there are laws about PTO. In some states a certain amount rolls over to the next year and if you’re fired they have to pay out your unused PTO.
Unlimited PTO means if you’re fired you actually have 0 PTO accrued. So if it’s a high churn company or a company about to make huge lay-offs, it works out to be cheaper overall, even if a few employees have actually been using a ton of PTO.
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