I honestly can’t wrap my head around this no matter how much I read.
In: Economics
Honestly, unlimited PTO can be great if the culture around it takes advantage of it.
In some companies, people will absolutely use their unlimited PTO for multiple vacations, sick days, etc, and the real measurement is productivity.
However, by and large, when people are told you get 15 days of vacation and 3 sick days (what I received with my first company in 2011), people would take all 18 days – no one asked questions about it, and no one thought less or more of anyone based on the days taken.
That’s because there was a balance hanging over everyone’s head, and many companies had some extent of “use it or lose it” policies.
In an unlimited PTO world, the amount of PTO you can actually take is measured by how much others take. One workaholic or one abuser of the policy will drastically change the company’s sentiment toward what is acceptable.
And lastly when your PTO is accrued in a normal setting, it basically means you get your salary PLUS your PTO, so if you leave or are let go, you get paid out on those hours.
Unlimited PTO can essentially be a pay cut if you’re not actively taking it, and leave or are laid off.
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