“If you’re managing your time and saying to yourself, if I get X, Y, and Z projects done, I feel like I can take a week’s vacation next month…. I think that empowers your employees.”
In episode #119 of Mission to Grow, the Asure podcast that serves as small business owners’ guide to cash, compliance, and the War for Talent, VP of HR Compliance and Learning and Development at Asure Software, Mary Simmons, sits down with host Mike Vannoy to discuss the evolving concept of unlimited PTO and its implications for both employees and employers. Mary shares the social contract between employer and employee, the importance of clear communication, and the critical role of HR policies in ensuring smooth execution.
Takeaways:
- Social Contract in Employment: The foundation of an unlimited PTO policy is built on trust and transparency between the employer and employee, aiming to create a mutually beneficial relationship.
- Empowerment through Flexibility: Unlimited PTO can level the power dynamic, giving employees autonomy over their time, which in turn fosters a sense of importance and engagement in the workplace.
- Challenges for Managers: Without the structure of traditional time-off policies, managers must clearly communicate expectations and manage workloads to ensure team productivity doesn’t suffer.
- Policy Implementation is Key: Unlimited PTO policies require a well-thought-out framework, including blackout periods during peak business times and clear approval processes.
- Training for Success: Managers must be trained to handle unlimited PTO, understanding how to manage workloads, maintain team morale, and avoid favoritism.
- Non-Exempt vs. Exempt Employees: The implementation of unlimited PTO varies between exempt and nonexempt employees, with special considerations for overtime and job-specific tasks.
- HR’s Critical Role: A successful unlimited PTO policy hinges on having strong HR foundations in place—such as detailed employee handbooks, accurate job descriptions, and formal performance management processes.