Unlimited Paid Time Off? 5 Fantastic Benefits of Giving Employees Unlimited PTO
Unlimited paid time off (PTO) can be beneficial for the employees as long as they provide notice to those in executive positions.
Lukas Here, while listening to the entreleadership podcast with Michael Hyatt, I began to analyze the benefits of giving staff unlimited PTO. In the interview, Hyatt mentioned that the employees at Michael Hyatt &CO are allowed to take unlimited PTO and that no one has taken advantage of this policy so far. After listening to this podcast, I could not help but think: is unlimited PTO beneficial?
Early Adopter Of Unlimited PTO
Screenshot from Virgin.com
Richard Branson, the founder of The Virgin Group, was an early adopter of Unlimited PTO. He believes that employees should not be tracked by the time they work but by the quality of work they are producing.
A requirement for employees to receive unlimited Paid Time Off is to be caught up with their work. This measure ensures that the rest of their team isn’t left hanging out to dry. Owner Richard Branson says the approval from managers isn’t necessary.
My personal opinion is that staff members communicate with their team about the days they plan on taking off.
5 Benefits of Unlimited Paid Time Off
- Vacations facilitate higher levels of energy
- Increased productivity
- Recruiting and employee retention
- Trusting and flexible company culture
- Vacations stimulate innovation
Higher levels of energy
When we take a break from work, we come back with newfound energy. Employees can burn out if not given enough time to rejuvenate. I would say that giving people a couple of weeks off each year is beneficial, but not every person is the same. Some people need more time to organize their thoughts. When an employee burns out, you can bet there will be more stressful situations and confrontations. Encouraging employees to take time off will improve their overall performance once they return.
After a break, I am always more eager to get going again. Recently I had to take 15 weeks off from the gym due to the coronavirus pandemic. For those that don’t know, the gym is the place that brings me peace and clarity. During my time off, I was itching to get back to lifting weights. Since starting up again, I have wanted to get as much gym time as possible. The gym and work are interchangeable for me. Every week I use Sunday as the day to myself and take off from business. When Monday rolls around, I am always eager to get back in the ring and do what I do best.
Recruiting and Retention
A business that offers its employees the benefit of unlimited PTO has an easier time finding talent. Due to unlimited Paid Time Off being a perk not offered in many companies, people are excited to hear about it. They are enticed by the possibility of being able to travel more. Algorithmic Global is an entirely digital company. This structure means that there is no direct office where employees report. The employees of AG can go wherever and whenever they please, making the retention of employees higher.
Trusting and Flexible Culture
When an employee receives unlimited Paid Time Off, they are given trust by their employers. Trust is a core principle in every business. The employee must trust that the employer is looking out for their best interest. On the flip side, employers must be able to trust employees will utilize the unlimited PTO perk appropriately.
Vacations Stimulate Innovation
Last year there was a post about how a trip to Jamaica taught me about business. Business is done differently around the world. I am the type to analyze how other cultures function and work. When I returned from my Jamaican vacation, I realized I knew different negotiation skills and how to be more straightforward with my communication. The trip to Jamaica is one example of how being in a new culture and giving yourself time to think will spark new ideas on how you can perform better.
Unlimited Paid Time Off offers your employees a better chance of having more time for themselves. Vacation time and a break from the office have always been the norm, but when an employee does not have any limits on their PTO, they will have the freedom to take the appropriate amount of time.
We are always interested in hearing your thoughts on new business practices. Comment below or send me an email if you have any suggestions or insights on unlimited paid time off.