New Reasons to Consider Unlimited PTO Now
The following article was originally posted on the?Mercer US Health News blog .?You can find this article along with more health news content?here .
By?Richard Cooper, Life, Absence and Disability Consulting and Maura Cawley, Sub-market Segment Leader
For many employees today, paid time off is a key factor in deciding to join an organization and to stay at a job. In our recent?Global Talent Trends survey , employees around the world ranked vacation and time-off fifth as a reason to stay, while employees in the US ranked it third. Beyond its importance in attraction and retention, employers also recognize that allowing employees flexibility in taking time away from work is an important component of total well-being.
As employers consider ways to enhance their vacation and time-off policies, a growing number have decided on unlimited PTO.?Mercer’s Survey on Absence and Disability Management ?found that 20% of the 405 responding organizations offered unlimited PTO to at least some employees in 2021, up significantly from 14% of respondents in both 2015 and 2018. While 8% offer this benefit to executives only, employers are just as likely to offer it to all exempt employees (8%), and an additional 4% offer it to all employees.
Not so long ago, employers viewed unlimited PTO as a perk at the far end of the spectrum. But in today’s work environment unlimited PTO offers some practical advantages. Remote work and the 24/7 nature of technology have blurred the distinction between work and not working. Employees want – and increasingly, expect – more flexibility and time off than ever before. And, in a tight labor market, employers are increasingly called upon to negotiate “one-off” vacation deals to attract talent to the organization.
For some employers, unlimited PTO may help address these challenges. Of course, one advantage it has always offered is better management of vacation-related liability accruals. We have seen companies that have put unlimited PTO in place using the savings to enhance other components of their total rewards package.
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Lessons learned
Another reason to consider unlimited PTO now is simply because these programs have more of a track record. Here are some best practices to keep in mind as you consider whether unlimited PTO might be a fit for your organization:
While unlimited PTO may not be the right approach for every organization, there are good reasons that it is gaining traction now. Given the high value that employees place on more flexible time off, it may deserve a closer look.
Storyteller | Writer | Creator
2 年Unlimited PTO is nice, but it really does require managers and leadership to ensure their team is feeling supported and encouraged to take it, and if they're not, that's a great opportunity to listen to the reasons why and work with them to give them the experience that they're looking for.
Digital Marketing | Content Strategy | Social Media
2 年Thanks for sharing, Mercer US. Paid time off is one of many key factors in deciding to join an organization.