LinkedIn is one of several tech companies that offers an unlimited paid time off (PTO) policy to its employees. With an unlimited PTO policy, employees do not accrue a set number of vacation or sick days per year. Instead, they can take as much time off as they need or want, as long as they get their work done.
What are the benefits of unlimited PTO?
There are several potential benefits to unlimited PTO policies for both employees and employers:
- More flexibility and freedom for employees to take time off when needed
- Eliminates tracking of accrued days off
- Encourages employees to actually use their time off
- Supports better work-life balance
- Can aid in recruiting and retention
- Shifts focus to results rather than time spent at desk
With unlimited PTO, employees don’t have to worry about accruing a certain number of days, tracking balances, or losing days at the end of the year. They have the flexibility to take time as needed – whether for a vacation, a child’s school event, illness, mental health days, etc.
How does unlimited PTO work at LinkedIn?
While policies vary across companies, here are some key details on how unlimited PTO works at LinkedIn specifically:
- Available to all regular full-time employees after 30 days of employment
- Employees are encouraged to take at least 3 weeks off per year
- Time off requests are approved by managers
- Employees are asked to consider team needs and upcoming deadlines when requesting time off
- Unlimited PTO can be used for any personal reasons, including vacation, sick time, doctor appointments, family obligations, etc.
LinkedIn makes sure to note that while the time off is “unlimited,” employees are still expected to exercise good judgement, communicate with managers, and deliver excellent results.
What are the requirements or rules around unlimited PTO?
While unlimited PTO offers flexibility, there are some common requirements or guidelines to consider:
- Employees must get time off approved in advance by their manager, with adequate notice
- Managers can deny or defer time off requests if they conflict with business needs
- Employees must meet all work and project deadlines even when taking PTO
- Unlimited PTO is discretionary, not a guaranteed right
- Time off minimums and maximums may be set by the company
- Employees must follow proper protocols for submitting PTO requests
The number one rule is that employees must get approval in advance for any time off. Managers can deny requests if they will negatively impact deadlines or team workflows. Employees must plan accordingly and have coverage for any duties.
How much time off do employees really take?
One common question about unlimited PTO is whether employees take more or less time off compared to traditional vacation policies. The data on this varies:
- Some studies show unlimited PTO results in employees taking about the same amount of days off, or slightly more.
- Other surveys indicate employees may take less time off under unlimited PTO policies.
- Factors like company culture, employee tenure, demographics, and more impact time off usage.
Here are average days off per year for U.S. employees under different PTO policies, according to a study by Namely:
PTO Policy | Average Days Off Per Year |
---|---|
Traditional set PTO days | 15.9 days |
Unlimited PTO | 16.8 days |
No PTO policy | 11.1 days |
While unlimited PTO offers more flexibility, some employees may take less time off if they feel it is frowned upon by management or peers. Clear communication of guidelines and expectations is essential.
What are the pros and cons of unlimited PTO?
Let’s summarize some of the key pros and cons of unlimited paid time off policies:
Pros:
- Increased flexibility and freedom for employees
- Eliminates tracking of PTO accruals
- Encourages better work-life balance
- Supports recruitment and retention
- Shift focus to results over hours worked
Cons:
- Can be abused by some employees
- May result in employees taking less time off
- Administrative challenges with approvals
- Harder to plan projects and staffing
- Could increase costs for employers
There are valid advantages and disadvantages to weigh when considering an unlimited PTO policy. It works well at some companies and not as well at others. Leadership culture and clear guidelines are key to making unlimited PTO work effectively.
Does unlimited PTO improve employee satisfaction?
Research indicates that unlimited PTO policies can improve employee satisfaction, engagement, and retention when implemented well:
- A study by HR research firm Fractl found that employees with unlimited PTO are 20% more satisfied than those with traditional PTO.
- 83% of employees surveyed by HR platform Zenefits said unlimited PTO boosts morale.
- Work Institute’s data shows employees are 50% more likely to quit without unlimited PTO.
The freedom, flexibility, and trust implied by unlimited PTO seem to resonate with employees. But satisfaction also depends on whether leadership actually encourages using the time off. Company culture must support taking vacations.
What are the risks or challenges of unlimited PTO?
While unlimited PTO is growing in popularity, there are some risks and challenges to consider:
- Overuse: Some employees may abuse generous policies and take excessive time off.
- Underuse: Despite having unlimited days, some staff feel obligated to take less time off.
- Inequities: Managers may unintentionally approve more time off for some employees over others.
- Scheduling: With unpredictable absences, planning projects and coverage can be difficult.
- Costs: Employers lose predictability of expenses, which could rise with unlimited PTO.
These risks can be mitigated with clear communication of guidelines, tracking of time off, and a culture where using PTO is truly encouraged. But challenges remain an area to watch.
Does unlimited PTO work for all companies?
While unlimited PTO is trendy, it may not be the best fit for all companies and cultures. Consider the following factors when deciding if unlimited PTO could work:
- High-trust, autonomous culture
- Focus on results over hours worked
- Remote employees or flexible schedules
- Younger employee demographics
- Sophisticated tracking of time off
- Employees who are self-motivated and responsible
More traditional and structured companies may struggle with unlimited PTO. Tight project deadlines or customer needs can conflict. Additionally, some managers and older employees are accustomed to a traditional vacation accrual system and may resist change.
What are best practices for unlimited PTO policies?
If implementing an unlimited PTO policy, research suggests some best practices include:
- Set minimum and maximum days off
- Train managers on fair approvals
- Clearly communicate guidelines and expectations
- Track PTO usage across employees
- Support and encourage employees to take time off
- Get executive and leadership buy-in
- Phase policy in gradually
With good planning and communication, unlimited PTO can be a win-win for both employees and employers. But the policy must align with the company’s culture and leaders must demonstrate support.
Conclusion
Unlimited paid time off is an enticing policy that demonstrates trust in employees and supports better work-life balance. But it requires thoughtful execution. Employees need guidance on taking adequate time off, while preventing misuse. Tracking usage, securing executive buy-in, and establishing guardrails enable unlimited PTO to be a strategic advantage.
When aligned with company values and culture, unlimited vacation can boost satisfaction, engagement, and retention. Employees feel empowered to take time as needed. At its best, unlimited PTO shifts focus to results rather than office face time. But the model does not fit all companies equally. Leadership, communication, and a high-trust environment are essential to making unlimited PTO work.