Is Unlimited PTO a Good Idea? Here’s Why It Can Be Problematic for Businesses

At first glance, unlimited PTO may sound like a great addition to any compensation package. Who wouldn’t want the ability to take off as many days as they want for their own health, childcare, side projectors, additional education, and just plain fun? But “unlimited” or “flexible” PTO often creates real-world problems when it’s applied in the workplace.

Studies have shown that while job ads offering benefits like unlimited vacation time have increased by 178% in the latter 2010s, employees with unlimited PTO actually take fewer vacation days than those without it.

Is this a problem? It absolutely can be when it comes to employee health, work-life balance, workplace practices, and employee turnover.

Here’s a look at the issue, its causes, and how organizations can address it.

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