But we have unlimited time off! Why would anyone not want to join a company with such a progressive time off schedule? Asked founder Sanjeev.
Two reasons, One PTO is a perk not a reason for joining a company. People will join and stay at your company when they believe in your vision and experience professional growth.
And Two, your company is a start up. No one is going to believe that with the aggressive production cycles that they can just take off and take advantage of this policy.
With over 30 years of HR tech experience and a focus on employee benefits and leave management.
Adam & Ulises are serial entrepreneurs who founded PTO Genius to help companies increase job satisfaction, attract/retain top talent and lower payroll liability by re-imagining what employees can do with paid time off.
Today we discuss:
- The pros & cons of Paid time off structures
- How to implement the right structure for your unique company
Challenge today with Paid Time Off?
Potential liability for the company because it creates an environment where not self managed, managed like a traditional policy. Too dependent on the individual manager approval.
- Using unlimited as a marketing tool. But there really is no unlimited
- Creates more legal liability
- People either don't take time off or too much time off
- The bedrock to unlimited PTO is good culture. The bedrock of trust which can NOT be managed by managers.
Why is this important to the company?
- Mutual respect
- Unlimited PTO looks desirable to avoid the liability of the employment contract
- Avoid the management
- Payout at the end of employment
- PTO is not a reason why people join your organization
- How PTO is managed/supported is a snapshot of your leadership style (which is the root of why people stay or leave your company)
- Benefits & perks are icing not the cake.
How do we do implement the right PTO policy?
Questions to Ask First: Can we trust our employees? Do I want to give managers the authority to manage when people are away?
- Starts with leadership and how you value the employee
- Communication- transparency
- Being Vulnerable as leaders
Start with the right culture. Most startups should start with a traditional PTO model
- Better to keep yourself out of a legal liability.
- Can't eat the cost of litigation
- Employees with unlimited PTO end up taking fewer vacation days than their limited PTO counterparts (13 days versus 15 days). SHRM source link HERE
If you want to implement an unlimited PTO policy
- Ask yourself if you are really built for it?
- Don't call it a “unlimited” policy but a “Self Directed” PTO
- Document the policy
- Define non starters- set up bumpers
- Manage that everyone has access to time off
- Encourage time off
- Creative time off incentives
- Assignment & tracking should be no disruption to workflow
- Set up a calendar where people know when people are off
- Hand off before someone goes away
- Look at your company values and align your PTO policy with that which aligns with your leadership style
- Unlimited policy- do you meet the above criteria. Is it truly self directed?
- Proactive hand offs
Website: PTO Genius