In today’s world, more and more companies are moving towards allowing their employees to have an unlimited vacation policy rather than the more traditional benefit of a per-year set number of days.
While this may seem like an out-there and eccentric idea, it is surprisingly taking hold of many organizations and is becoming more of the norm.
There are certain benefits associated with this idea – both for employees and employers. Take a look at the top pros of an unlimited PTO policy as a benefit offered at your business.
The Benefits of Unlimited PTO
It can save your company money
Believe it or not, an unlimited vacation policy at your organization could save the company money. This is because many times, employees carry unused vacation days all the way to the end of the year, resulting in the need for them to be “paid out” for days that cannot be carried over.
Also, companies with traditional vacation policies often times get stuck paying departing employees out for unused vacation days.
With a benefit plan that does not operate under a set number of paid days, employees will not have to worry about the “use it or lose it” rule and your company will not be stuck paying for unused days.
Ask.com noted in a study that unlimited vacation time can save 52 work hours per year of administrative time that is typically spent determining how much vacation time has gone unused.
It’s a great recruiting tool
Having this benefit at your organization is a great way to attract top talent. After all, unlimited vacation time certainly is an appealing perk!
Some CEOs or business owners felt setting this policy was necessary to attract the right candidates for their companies
– for instance, Margaret Wheeler of Stitch Fix stated that they switched to unlimited because they were recruiting candidates from companies with the same policy, and it made attaining great talent easier.
An Ask.com survey found that 69 percent of respondents would be more inclined to take a new job if the company offered unlimited PTO.
It enhances work-life balance for employees
Days off taken by employees is on the decline, according to the U.S. Travel associated, who reported that the average worker took 16 days off in 2013, a decrease from the average of 21 days in 2000.
Having a more flexible vacation time allowance for employees to take advantage of them will allow them to take more time off in order to relax, refresh, and reset. This could result in lower levels of stress and happier employees overall.
How a PEO Can Help
Since unlimited PTO is still a relatively new idea in the corporate world, a PEO can be helpful in determining whether the policy is right for your company, and if so, what parameters to set around it. Call us to be matched with the PEO that will work best with your business.