Why NOT Offer Unlimited PTO?

September 29th, 2015

As company owner, you have probably heard the voices singing about unlimited time off. You’ve always preferred the graduated approach, in which employees earn more paid time off the longer they’ve been working for the company, but you don’t want to be outdated. Think again. While this approach might be great for high-level long-term employees who are on salary anyway, or even a unique way to attract top talent, there are several pitfalls to consider. 

Has the Potential for Abuse

One large downside of giving your employees unlimited PTO is the potential for benefit abuse. Many management personnel already deal with productivity lost due to employees sidetracked by social media and lack of drive. Give them unlimited paid time off, and you might be hiring temps to do the work you already pay your employees to accomplish.

Encourages Employees to Rest and Relax – too much

You already offer three-day weekends at specific holidays. With unlimited time off, watch them grow into four-day breaks – with an extra three-day on a monthly basis. After all if you providing unlimited time-off, why shouldn’t they take it?

Potential Financial Risk

Ok – so you have dependable employees and you’re sure they won’t take unfair advantage, but consider the possibility of PTO overlap. With unlimited paid time off, it could become a common occurrence. Too many people off work at once, leads to a decrease in accountability and production. In addition, you have to consider the chance that someone may take an extended vacation when you really can’t afford to have him/her out of the office.

Of course, each company owner must consider the pros and cons of unlimited PTO and act accordingly, but here at Olympic Staffing, we see more cons than pros. Meanwhile, if you are in need of new employees, contact Olympic Staffing. We will be able to help you find employees who are responsible and willing to work – employees who are happy with traditional vacation packages.


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