Many HR leaders are adopting or considering unlimited PTO (paid time off) policies for their benefits packages. Twitter is among the companies that offers this benefit, and it is often included among the models for the policy.
Netflix, Salesforce, and LinkedIn also offer unlimited PTO. In fact, tech companies have led the way on this front. However, even Goldman Sachs, well known for 100-hour work weeks, has recently announced an unlimited PTO policy.
As the Great Resignation forced employers to reconsider their benefits packages to attract top talent, many HR leaders considered changes to combat burnout. After all, respondents to the latest State of HR report said burnout was the greatest consequence of the pandemic. It has led to record breaking attrition.
READ: Should You Offer Unlimited PTO?
Pros and Cons of Unlimited PTO
Some think unlimited PTO is a viable solution to this problem. These policies allow employees to take time off as needed without worrying about accrual. HR professionals and recruiters often stress that these kinds of policies demonstrate that the employer trusts the people they hire to simultaneously care for themselves and be responsible for getting their work done.
However, debate is raging about whether these policies really benefit employees. Many point out that employers reap great benefits from unlimited PTO. For starters, without accrual, they no longer have to track paid time off, which saves money. In addition, they save money because they no longer have to pay out employees who leave the company for the PTO they never used, which is where the real beef lies.
Many point out that the United States, unlike its allies, does not federally mandate paid time off, and the cultures at many U.S.-based companies mean that employees do not use their PTO. Without an accrual process, many employees refrain even more from taking vacation. Still, Twitter gets high marks for its policy.
Twitter's Unlimited PTO
Twitter has offered unlimited PTO for years. It fits with the history and initial culture of the social media company, which launched on March 21, 2006. Unlike other tech companies, it does not pay hefty salaries. Instead, the welcoming culture and benefits are meant to attract top talent. Founded by Jack Dorsey, Noah Glass, Evan Williams, and Biz Stone, Twitter built a reputation for being a nice employer who allowed for many accommodations.
In fact, Twitter recently brought in hard-nosed executives to help it innovate faster and transform the culture. The idea was that employees needed a little tough love and constructive criticism to move forward. However, the results have been mixed. An article in The New York Times described a serious increase in employee dissatisfaction amid the changes. Despite this turn, unlimited PTO remains a benefit.
On Comparably, current and former employees listed Twitter's PTO as the second most important benefit, behind only healthcare. More than 25% of them said it was the most important benefit. The respondents determined that this policy represented between $500 and $1,000 cash value per month. Most importantly, 92% of respondents said their boss did not expect them to work on vacation.
On Glassdoor, numerous current and former employees mentioned the unlimted PTO policy in their reviews. Twitter vacation and PTO received 4.5 out of five stars. At least one reviewer did not get to use the policy much but said it was generous.
Setting the Tone
Indeed, these unlimited PTO policies are only as good as the culture and managers, who enforce them. This could be good news for Twitter. In a recent interview with CNBC, Courtney McMillian, head of Total Rewards at Twitter, discussed unlimited PTO at the company. She shared that employees also get a montly day of rest.
McMillian's position is simple. "I manage work, not people," she says. As a result, she believes that employees should have the ability to manage their own schedule and take time off whenever needed. She believes the work will get done all the same. McMillian also stresses that she must model the appropriate behavior. Therefore, she takes time off herself and talks about it with her colleagues.
Key Takeaways
- HR leaders who are considering unlimited PTO must remember:
- Leaders must set the example like McMillian at Twitter
- The policy should match the culture
- Consider state laws regarding payouts of unused, accrued time off to determine the language of the policy
- Create parameters, so things, like entire departments taking off at the same time or people leaving during a busy time for their team, do not happen
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