Business

The Secret Ingredients of Unlimited Paid Time Off (PTO)

In modern corporate style workplaces, the concept of the unlimited paid time off has been gaining tremendous popularity. With the involvement of companies like Glassdoor, Dropbox, etc., in the unlimited policy, the popularity of this policy has even increased more. This paid policy has been benefiting employees and employers both in a better way.

What is a Paid Time Off Policy?

This concept is highly popular among startups and rapidly expanding organizations. In paid time off (PTO), employees are allowed to take as much time off they want under one condition that they have to complete their work on time. This practice brings more flexibility in the work schedule of employees as they are entrusted to manage their own time.

Some enterprises aren’t sure about the effectiveness of the unlimited policy. However, the companies which have adopted paid time off policy, their data has revealed that this program has reduced the employee’s vacation taking time. As per the research hosted by Indeed, the most important job satisfaction and happiness factor for an employee is to find harmony between the work and their personal lives. When employees have the choice to manage their personal lives and work schedule as per their own will, then their productivity increases accordingly.

Types of PTO Policy 

Around the globe, companies are practising unlimited policy in different styles. Mainly following types of policies are prominently implemented;

  • Sick Time Off  – This time off is given to a sick employee. 
  • Vacation Time Off – This kind of paid time off is used by employees when they are planning a trip or have some unplanned emergency.  
  • Personal Time Off – When an employee has to take time off for some personal work or to celebrate religious activities, then they can use personal PTO. 
  • National Holidays – The days like Christmas or Nationally declared holidays when the entire office is closed, but employees are still getting pay. 
  • Bereavement Time Off – This unfortunate time off is implemented when a close family of an employee passes away. 
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There is plenty of other paid time off policies present in the HR world according to the demographic, geographic and other social factors of a company. 

Key Ingredients to Implement Effective Unlimited Paid Time Off Policy

The unlimited policy works best when both employees and employers keep each other’s requirements in mind. The effectively implemented policy make sure that good work ethics and employee well being aren’t compromised. To avoid pitfalls of paid time off policy, a company has to design the perfect unlimited policy and the key ingredients of well-balanced policy are;

#1. Employee Focused Approach 

The cases of successfully implemented unlimited vacation policies are recorded in the companies were giving time off to employees is the core motive. When a company fabricates policy around the happiness, well being and appreciation of employees, then the outcome will be indeed good. If an employee feels contended, then in return employee will give one hundred percent of quality work. 

The successfully implemented policy boost the culture of mutual respect, productivity, and morality in the organization. When a company gives employees responsibility to build their own time off period, then this showcases the trusting factor. This trust helps in developing the feeling of trust, goodwill, honesty and mutual respect in the employees. If attentions of implementing policy is genuine, then the success rate of the unlimited time off will definitely be positive. 

#2. Reestablish Work Measurement Units

Traditionally, employees efficiency measured on the basis of work completed by them in the clocked time. Under this scheme employees feel pressured and less motivated. Working long hours to prove the efficiency isn’t a sustainable way of working. To avoid the hassle, the work measurement units within a company needs to be redefined. 

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The management team and employees should come open on the platform and should establish future goals together. The efficiency of the employee should be measured on the grounds of the accomplishments, rather than the time spent in the office. To effectively implement paid time off policy in the organization, a contributory environment should be created which should encourage employees and managers to work in synch. 

#3. Communication is Main Secret Ingredients 

The boundaries and limitations of PTO policy sometimes get blur as the specific outline isn’t defined in the company culture. Employees can’t understand how much time off they deserve and they take less time off as compared to their efforts. There open communication channel between the employer and employee should be present so that the clear line between acceptable and excessive can be drawn. 

The complete guidelines should be discussed between the employee and employer to set up a better sense of acceptance. To make the unlimited policy more effective, companies should take initiatives like a mandated vacation, travel stipends, and even a monthly vacation raffle. Managers should closely work with the employees to make sure that they are feeling comfortable with the given time off. 

#4. Set Example 

To encourage and to implement the PTO policy successfully, managers should create a good example for their employees by taking some time off. When employees see their managers taking time off, then they will feel more comfortable in taking time off. This setting example practice should be done in every department of the company including HR. 

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Apart from setting an example, the company should encourage employees to take a holiday by taking interest in their vacation plans. Employees should be encouraged to share their vacation photos in the company newsfeed or share highlights at team meetings. This practice will reduce any guilt or stigma employee has regarding taking time off. 

It is a core responsibility of the HR department to ensure that employees are always engaged in their work. To keep employees always happy and productive, HR departments should embrace the paid time off policy. The effect of the unlimited policy is very positive on the managers and employees if it is implemented in the right way. The companies should definitely try this policy to improve their employees’ productivity. 

Author Bio: Jayakumar Muthusamy is a Digital marketer at Freshworks Inc. He generally writes about software that improve your marketing, sales or hiring process

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