Seven percent of U.S. employers offer unlimited PTO, up from 1% in 2014, according to human resources group SHRM. However, the number of vacation days employees actually take often hinges on the organization’s norms and expectations.
The average worker with capped vacation days takes 14 days off annually, while those with unlimited PTO take an average of 16, according to a survey from Empower. Despite the potential for more flexibility, employees are often hesitant to request too much time off, the Journal reported. PTO requests are also typically subject to manager approval, and in some cases, a “no days off” work culture may discourage usage.
Unlimited PTO can be a win-win for employees and employers when both act in good faith, Patty McCord, Netflix’s former chief talent officer who helped pioneer the concept in the early 2000s, told the Journal.
Hospital and health system executives have echoed the importance of leadership modeling PTO usage to encourage employees to take time off. Lisa Satteson, chief human resources officer at Philadelphia-based Jefferson Health, told Becker’s in August that front-loaded PTO banks — rather than tying them to hours worked — are more common today. At Jefferson, executives typically use four to six weeks of PTO annually, she said.
Other healthcare leaders have noted challenges in using PTO and fully disconnecting during time off.
Organizations must assess their workforce’s needs to determine whether unlimited PTO is the right fit. A human resources consulting firm leader told the Journal that in one instance, she advised a client to undo their unlimited PTO policy based on employee feedback.
