Weighing pros and cons of unlimited PTO

Q         We have about 120 employees and are considering moving to unlimited paid time off (PTO). What are the pros and cons of switching to such a system?

The pros and cons of unlimited PTO policies are hotly debated. Some pros include:

Increased productivity: Some people believe unlimited PTO may incentivize employees to accomplish more during their workdays to be able to take time off while still meeting deadlines and finishing assignments. The sentiment of burnout may also be reduced.

Flexibility: Another theory is that employees will have the ability to control their schedule and get things done when the time works best for them, thereby contributing to increased productivity and overall performance. Employees can more easily tend to their responsibilities in their families or with their children.

Overall well-being of employees: Unlimited PTO may also increase employee mental and physical well-being by allowing them to take time off whenever needed to refresh and reset, thereby increasing their desire to work and the quality of work-product. It also eliminates the feeling of needing to come into work when sick and can reduce the spread of illnesses.

Cost savings: Unlimited PTO may save you money since you wouldn’t need to pay an employee for time off that wasn’t actually used during the calendar year. Additionally, it would alleviate the cost of having HR staff spend time tracking employee hours or time off.

On the other hand, some cons include: