Unlimited holiday time for workers is good for business – even small ones | Gene Marks

Last week, the Microsoft Corporation joined more and more companies across the country by announcing that it was now offering unlimited paid time off (PTO) plans to its employees.

“When, where and how we work has changed dramatically,” the company’s human resources executive explained in a note. “And as we transformed, modernizing our vacation policy to a more flexible model was a natural next step.”

This makes sense, not just for Microsoft and other big companies. Unlimited His PTO should be considered by all businesses, big and small. My small business provides that. And I have many clients doing the same.

Companies that offer generous vacation plans, along with health insurance and retirement benefits, meet the needs of today’s workers. This recent study by the Society for Human Resource Management shows a high demand for flexibility, four-day workweeks, remote work arrangements, and generous vacation plans. Telling prospective employees that your company offers unlimited her PTO is a powerful recruiting tool, especially in this tight labor market. My clients frequently complain to me about their inability to find good workers. This is a great way to help alleviate that problem.

Still, I usually roll my eyes whenever I bring up the topic of giving them unlimited paid time off. A typical small business owner in this country, he is over 50 years old. To us, her PTO indefinitely seems like an over-the-top demand conceived by a lazy, good-for-nothing young worker. Of course this is not true. Regardless of how she feels about her younger generation of workers, today’s business owner admits that her work-life balance is a key benefit and ignoring it can be damaging. I have to.

But even if that discussion fails to garner interest, I always point my clients to: – It also helps in cost reduction. Now it’s getting their attention!

First of all, offering more time off does not increase an employee’s cash compensation. So when I read that the typical office worker’s salary increased by more than 7% this year, thanks to inflation, her unlimited PTO plan keeps her competitive without spending more cash. I think it’s the way. You might say it’s a cost to pay someone who doesn’t do the work, but that’s not the case when the job description is more in line with the deliverables than the time it takes. It depends on. But for many positions it is an achievable goal. At the very least, her unlimited PTO plan eases the burden of managing (and refereeing) vacations, sick leave, family leave, and other absences.

An unlimited PTO plan saves you money in other ways. A recent study like this one by an HR platform found that companies offering unlimited his PTO plans actually found that employees took less time off than traditional use-or-lose plans. is shown. People have Fomo and they don’t want to be perceived as being lazy if they let their devices do it. certainly offsets the argument that is a cost to the company.

Another cost savings is relevant when employees leave the company. In most traditional plans, unused vacation days are usually paid when the employee retires, a practice required in many states. But, with the exception of California (surprise!), most states don’t require employers offering unlimited her PTO plans to do this. So this is another cost savings.

Save money with an unlimited PTO plan. Helps attract better workers. It should be designed and implemented in the right way. Clients of mine who have had success with these types of plans have designed them with a very important premise. To be eligible for such benefits, you must earn them.

A company can have multiple PTO plans depending on the level of its employees. Traditional use-or-lose plans may be available to low-level, low-tenure employees. However, after being with the company for a period of time or demonstrating other types of achievements, an employee may become eligible to participate in Unlimited Her PTO Plan. It’s a carrot of performance and loyalty. And even then it cannot be exploited. That’s because a smarter client of mine doesn’t allow employees to take time off whenever they want. However, prior approval from the supervisor is required. This gives you full control over potential misuse.

Even after I make these discussions, it always amazes me how many of my clients still haven’t considered offering an unlimited PTO plan. As long as it’s implemented correctly, it can be a powerful recruiting tool and can lead to significant cost savings.

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