An unlimited paid time-off (UPTO) policy allows employees to take the personal time they need without a predefined limit. Unlike traditional PTO accruals, UPTO doesn’t generate any kind of balance. Instead, employers set parameters around when PTO should be used (but not how much).
An unlimited vacation policy isn’t right for every business, but it may be a viable option for employers looking to restore employees’ trust in their organization. In fact, 95% of employees said it’s important their company respects the line between work and home, per American Psychological Association research. For people like them, UPTO could:
- remind them it’s OK to take breaks
- reinforce that their employer prioritizes their health
- reduce their stress, burnout and disengagement
However, not every UPTO policy is identical, and the ideal way to implement one depends on the needs of your unique workforce.
How can UPTO help businesses?
Broadly, a UPTO policy can help enhance a company’s culture by placing an emphasis on employees’ personal needs. This is particularly important to the 77% of job candidates who told Glassdoor they consider a company’s workplace culture before applying.
For a small business, additional benefits of a UPTO policy could include:
- attracting more competitive applicants
- reducing financial stress for employees
- lowering potential liability associated with PTO payouts
A larger business or enterprise, on the other hand, could use UPTO to:
- streamline administrative work since it doesn’t require calculating accruals or time-off balances
- decrease costs associated with turnover and backfilling
- incentivize employee engagement and performance
Keep in mind that however a company introduces UPTO, it needs be equitable and inclusive. Despite its name, UPTO still requires structure and — above all — fairness.
What are the best practices for a UPTO policy?
While the decision to implement UPTO will depend on what your business truly needs, you can simplify the process by:
- clearly communicating the policy to your employees
- making supporting UPTO documents accessible
- gathering feedback from new hires and established workers
- monitoring PTO use after the policy is implemented
- establishing a regular schedule to revisit the policy
Even if you don’t implement UPTO, simplifying time-off requests in general helps employees and their supervisors.
GONETM, Paycom’s new enhancement to its Time-Off Requests tool, eliminates hassles by automating decisions around the process. Employees enjoy immediate responses to their requests, while managers don’t have to worry about manually approving every time-off request and adjusting balances.
Once GONE is set up, Paycom takes care of the rest, with automated decisions flowing seamlessly and accurately into payroll.