How to Implement an Unlimited PTO Policy

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Do you know what sets apart successful from unsuccessful companies? The answer is simple – it’s all in the management. Companies like Glassdoor, Crowdflower, General Electric, and Netflix, are not successful only because they’re delivering a great product to customers, but because of the way they treat their employees. Successful businesses focus on taking care of their employees – the imperative is to make them happy and comfortable in their working environment, enabling them to provide the company with the best possible results. They are not afraid to take the initiative and implement new and unconventional approaches while managing their business – like the unlimited PTO. If you’re still unsure what unlimited PTO is, we’ve talked about it in detail in this article.

What is the principle behind an unlimited PTO policy? Basically, it means that you are free to take as much time off as you want, as long as you get things done. This way, the focus completely shifts from the hours, as we traditionally see it, to results.

This whole concept may sound too good to be true, but it’s proven to be very effective. Did you know that on average, employees who practice the unlimited PTO policy take less time off than the ones who don’t have it? Like with everything in life, there are pros and cons when it comes to the unlimited PTO policy, and not everything is black and white. However, here we’ve decided to focus on what is needed to implement it in an effective way, and we will give you four tips to achieve it.

Communication is the key to the unlimited PTO policy

Like in life, when you’re trying to implement something new in business,  things can become very tricky if left unsaid. There can be a lot of ambiguity concerning unlimited PTO – such as the employees falling in a trap of what is acceptable and excessive time off.  An open dialogue between a company and its employees and full transparency regarding this question may prevent future and possible misunderstandings. The possible solution for this can be including some guidelines in your employee’s handbook to give them a better sense of what is acceptable. That way, the employees will have a clear view of what’s expected from them.

Lead by example

When we talk about implementing a successful PTO policy, for managers crucial to lead by example. This means they need to live by what they preach.

So, if employees see that the manager is taking time off, then they will be more comfortable to take some time off too. Besides following their own rules, managers should try to make a genuine interest in the employee’s vacation. This can reduce any guilt an employee might feel for taking time off. Sounds logical and easily achievable, right?

Track, track, track

The key is in data! If you’re just starting to implement a new PTO policy, then it’s crucial to track its usage. Even if employees are not held accountable to a specific number of vacation days per year, it’s still important to have a system in place to track vacation time. This will allow your team to monitor trends over time and watch out for over or under-usage. We discussed the details of why it is so important to track days off in this article.

Did you know that Vacation Tracker offers you the unlimited vacation days policy feature? That way, tracking days off becomes even easier than ever.  

Keep each other in mind

Unlimited PTO is best when employers and employees keep each other in mind. This establishes a company culture that encourages both good work ethic and employee well-being. Employees shouldn’t feel like they’re sacrificing their personal life and employers shouldn’t feel like they’re being taken advantage of. That’s why you should always be completely transparent with your workers and give them clear guidelines and feedback on what’s acceptable and what’s not.

In the end, we hope we have given you good advice on how to implement a successful PTO policy or at least a clue in which direction you should be thinking. Don’t be afraid to take the initiative and follow the unconventional models. Success follows the ones who dare to try.