Tim has a limited number of vacation days, so he uses them sparingly. Last year, he missed a big family trip because he was too anxious to ask for the time off. When his company announced that it was moving to an unlimited day policy, he was excited. Unlimited PTO sounded great to Tim at first, but soon proved to be as overwhelming and anxiety-inducing as the previous vacation policy. Now, he’s not sure how to manage unlimited PTO. For all employees out there with the same struggle, this article explores how to deal with unlimited time off.

Most Americans—78%, according to a Harris Poll—don’t use the maximum amount of time off allowed by their employers. So, it’s not surprising some organizations see value in unlimited PTO. The benefits for the business include:

• Reduced business liability
• Improved retention
• Boosted employee morale
• Enhanced well-being from better work-life balance
• Increased productivity
• Simplified processes for HR

Yet how does unlimited PTO work for the employee? After all, according to the same Harris Poll, the average American worker takes 15 paid days, “despite half (49%) being allowed more than that by their employer.” Why not take it all? The research identified ”pressure to always be available and responsive to demands” (31%) and “heavy workload” (30%) as the top barriers. Some 49% of respondents said they get nervous requesting time off.

Advantages of unlimited PTO for employees

A job that offers unlimited vacation can offer several benefits. With the ability to choose when you take time off and for how long, unlimited PTO is meant to help you maintain a healthier work-life balance. When you have access to time to relax and recharge, you can return to work more motivated.

Your productivity may also get a boost. Research consistently shows people given time off can actually perform better. This, in turn, can improve your performance reviews, which may lead to career advancement, raises, or other job perks.

Employees also enjoy greater flexibility with unlimited vacation days. The ability to take time off when you need it, without feeling guilty asking for it, can help how you feel about your work. The show of trust from your employer, believing you can effectively manage your time off, can also support your job satisfaction.

Finally, everyone may end up physically healthier, too. After all, with unlimited PTO there’s less pressure to show up to work sick and soldier on. This can help the individual employee and save others from falling ill, too.

Is unlimited PTO a trap?

Taking the “too good to be true” view of things, it’s not uncommon to hear employees say that “unlimited PTO is a trap.” There can be drawbacks for the employee.

Paul Carvalho, a technical advisor at Microsoft in Charlotte, NC, has worked for two companies with unlimited DTO (discretionary time off). Ultimately, he prefers PTO. Since he typically never used all of his allotted time off, he was able to roll over vacation time into the next year.

“It was like another side-saving that was going on,” he said. “I could expect another extra bonus check with my last paycheck. I liked knowing I was building a vacation slush fund to take a future trip to Europe or Australia for a month or whenever me and my company parted ways.”

Carvalho also echoed a common concern accompanying unlimited vacation days. “You run the risk of upsetting management if they perceive you are taking advantage,” he said. There’s a potential “grey area around what you as an individual perceive as a normal amount of time off and what your manager perceives as excessive time off.”

Another potential drawback? That even with the opportunity to take needed time off, you won’t feel comfortable doing so. Without clear parameters around your allotted vacation and how much vacation you’ve accrued, you might be hesitant to ask for days off. This can lead to employee burnout and an overall decrease in your productivity.

Unlimited PTO may also create tensions in the workplace. The employee who has no qualms about taking vacation days could leave others feeling resentful. After all, they’re left feeling like they have to pick up the slack. On the flip side, those who care a lot about what their colleagues think of them might prove less likely to take needed breaks. So, the disparity only grows.

It can also be difficult to feel OK about taking time off if your managers aren’t doing so themselves. The company handbook may tout unlimited PTO, but if the company culture doesn’t back that up in action, you could feel inhibited.

How to use unlimited PTO

Jobs that offer unlimited PTO require a different approach to managing your vacation days. This policy approach is touted as empowering the employee, “giving them flexibility and entrusting them to manage their time effectively.” But it takes some work on your part.

The first thing you’ll want to do is review and ensure you understand the policy at your place of work. For example, some companies include parental and sick leave in their unlimited PTO. Others might keep them separate or specifically exclude short-term disability leave.

Ask your HR team to give you an idea of the average number of PTO days people take in your organization. Specifically, you want to gauge how much vacation time the average worker takes. Of course, the amount of time you’ve worked there will impact how much unlimited vacation time is realistic for you, but having an idea of the average can help.

It’s also important to keep track of your time off. You may find it useful to separate your sick days from your holidays and your vacation days as you monitor your PTO.

Carvalho suggests having a set number of days you want to meet per year. At the same time though, he says, “Be mindful of the team.  Don’t leave them shorthanded.”

Further to his point, you can preserve the goodwill of people on your team when you take time off by arranging coverage and by being flexible. Try to be aware of when others will want to take their days away from the office and accommodate those when you can.

Planning ahead, even for the entire year, can help you ensure you take full advantage of your available time off and that your requests are approved.

Finally, try not to work on your time off. This is true for any employee, whatever the vacation policy. Yet, 42% of people with unlimited PTO “always” work on vacation — compared to 37% of people with vacation accrual saying the same.

Make the most of your vacation policy

Unlimited PTO is growing more common, but it’s still not widespread. A 2023 Society for Human Resources Management (SHRM) study found that only 8% of companies in the US offered unlimited vacation.

Yet the bigger issue remains people feeling they can’t take a vacation, no matter what policies you have in place. SHRM cited the Bureau of Labor Statistics finding in 2022 that the vacation rate for American workers in 2022 (“the share of workers on vacation for all of a given week”) was only 1.7% compared to 3.3% in 1980. With the importance of employee engagement and retention, encouraging vacation days to avoid burnout is an important business measure.

Want to learn more about what your employees think about your policies? Employee feedback surveys (anonymous or not!) can provide helpful insights as you consider what’s next in improving your workplace for everyone. A free Sogolytics trial can help you get started today! Ready for a more comprehensive employee feedback program? Let’s talk!