Many corporate giants, like Microsoft, have started offering employees unlimited paid time off (PTO). But could this work for smaller businesses?

In this blog, we’ll cover the factors you should consider, so you can decide whether offering unlimited paid time off would work for your business.

Enhanced work-life balance

More and more people are seeking a good balance between their work and home life. Offering unlimited paid time off is a great way to achieve an excellent work-life balance.

Powerful recruiting tool

Offering unlimited PTO, alongside traditional benefits like a good pension or health insurance, will make your company stand out as a very attractive proposition for future employees. In fact, a recent study by Hubstaff found 73% of workers believe work-life balance is a core factor in choosing a job, something that is definitely achieved through unlimited PTO.

Cost savings

Offering unlimited PTO creates cost savings, especially when an employee leaves the company. Typically, an employer would need to pay any unused holiday in one lump sum, but with flexible unlimited PTO, this is not the case.

Incentive for performance and loyalty

Many companies are looking to offer unlimited PTO as an incentive for long service or based on performance, offering it as a perk for high achievers and rewarding loyal employees.

Reduced administrative burden

Companies that offer unlimited PTO have found that it reduces sick leave, family leave, reducing the administration burden and the need to investigate absences.

Less time off taken

A recent study has found that employees take less time off with unlimited PTO, than they do with the more traditional use-it-or-lose-it system. With the traditional system, employees have FOMO (fear of missing out), whereas with unlimited PTO, their conscience kicks in and they do not want to be seen as taking too much time off.

Simplifying leave management

LeavePlanner makes managing leave easy, allowing businesses to successfully offer unlimited paid time off. It helps create flexible work patterns and arrange cover to prevent staff shortages, so businesses can feel confident they can experience the benefits of unlimited paid time off.

Arrange your free trial today. For easy-to-use absence management software, call Steve on 01252 636 070 or email support@leaveplanner.com

Pssst! Check out our new all-in-one system, HR Planner, which incorporates an easy-to-use leave management solution, designed specifically with SMEs in mind.