Guidelines that may not be listed in your HR policy

Companies today are adding a new benefit to their compensation package, unlimited paid time off. This policy allows employees to take as many days off (within reason) as needed, without waiting to accumulate time. This offer is especially attractive to new hires who often start with zero days and can take a while to start accumulating those precious paid time off (PTO) hours. There are lots of articles out there on the pros and cons of unlimited PTO and we’ll highlight some of those. However, the intent of this post is to provide you with the unspoken rules that govern this new benefit. 

Pros of unlimited paid time off:

1. Attracts top talent: the ability to have time off within the first few months of starting a new job can be a welcomed perk to new hires
2. Avoid wasted hours: Tenured professionals do not need to rush to burn their hours towards the end of the year with the use or lose it approach
3. Improved work life balance: It allows greater flexibility for work-life balance as employees can take time off based on their needs and reduce feelings of burnout.

Cons of unlimited paid time off:

1. Ethical challenges: When you leave the company, for any reason, you will not get paid out for any unused hours accrued.
2. Management perception: Flexibility varies depending on your direct manager. Since it is not earned, it becomes a privilege instead of a right
3. Reduced time off: Studies have shown that employees with unlimited PTO take less time off

While this policy is relatively new for most companies, it is gaining traction in start-ups and the tech industry with many companies offering this benefit. With any new policies, there are things that the industry and individual companies will need to navigate on their own as they figure out how for employers and employees can get the most out of this benefit.

While the pros and cons are widely known and debated, with anything that’s new, there are unspoken rules that govern this policy.

Unlimited isn’t really unlimited

Unlimited time off should have an asterisk, unlimited* PTO. Unlimited does not mean you have license to as many days as you want, it’s intended for you to take as many days as you need. Taking a 2 week vacation every month is likely going to get you a call from your HR department for abusing this policy. Unlimited means that within reason, you are able to decide your time off schedule as long as it does not impact your team, or deliverables. There aren’t any good guidelines on how many days you should aim for. However, at a minimum you should follow what you previously enjoyed and add a week or two to it.

Not a license for a 4-day work week

It may seem reasonable to take one day off a week to shorten your work week and manage your time. However, that time accumulates to about 48 days per year, or about 9.5 weeks. If this is not already explicitly stated in your HR policy for unlimited PTO, consider this is an unspoken rule. Sure, Fridays may seem like a slow day, and you may have taken it off in the past, but abusing the policy to create a four-day work week is guaranteed to get attention from your management team. It’s great to have the flexibility to extend your weekends here and there, but do not make this a regular occurrence.

More than 3 weeks may need approval

Unlimited PTO seems like a boon for employees that want to spend time with family and friends that may not be near, so 3–4-week vacation sounds like an incredible way to maximize that time. Before you start making any plans, reach out to your manager and HR team to make sure that the amount of time is something that you are able to take off. Taking off for a month is likely going to impact your team workflow and you’ll certainly need coverage to manage that. Do not wait until a few days before your trip before asking, instead, give your manager enough time to fulfil the processes and approvals so that you can relax as you head into a wonderful time off.

You still need coverage

If you are making the most of your unlimited PTO, you want to make sure that you have the right coverage in place, those rules still apply. Having the right coverage means that you must be transparent with your manager and team about your time off. It also demonstrates professionalism and responsibility and you show your company that you are committed to keeping your projects on track. Getting coverage when you’re out of the office is a fundamental aspect of effective teamwork, productivity, and maintaining a positive working environment. Whether you have unlimited PTO or not, this should be standard practice.

PTO is unofficially tracked

It may not require you to log into a system and submit your hours for time off, but you can be sure that someone, somewhere is tracking the amount of time you take off. It may not be in an official company system, but managers are tracking to make sure employees are not abusing the time off policies. How much is tracked may depend on the company or the organization but to ensure fairness and accountability, your manager will likely check your absences.

Unlimited time off can be a great added benefit to your total compensation package. It’s a new benefit and with it comes a lot of ambiguity that employers and employees alike are trying to navigate and strike the right balance. It does not cover medical or family leaves that are mandated but should only be used for vacation and emergencies.

Understanding the expectations that your work will still be completed in the agreed upon deadlines, and that your time off is not unreasonably impactful to your team, are key in making sure you stay well within those policies. Read your HR guidelines to understand how your company’s policies adhere to unlimited time off. Communicate with your manager and your team with enough notice to have the proper coverage in place. It’s a great benefit, use it wisely.

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