Why more job seekers are saying no to unlimited PTO

Fewer employers are advertising unlimited paid time off in their job postings than they were just a few years ago, according to a recent report from Revelio Labs. While such arrangements used to signal a more flexible culture, a lack of clarity around how much time off one will actually get is now making them less attractive to job seekers.

Unlimited PTO may seem quite generous, but those with it often feel hesitant to request time off without any clear standards or guidelines. Such policies are partially to blame for trends like “quiet vacationing” this summer, where workers ​​take a trip without formally requesting time off or informing their supervisor. Instead, they’ll work a bit remotely from wherever they’ve traveled to then log off and enjoy their vacation time. 

Workplace experts say there isn’t one perfect blanket time off policy — but it all comes down to a company’s PTO culture in general, how time off requests are managed, and how comfortable employees feel taking needed time away. 

“It can be very ambiguous if it’s not well implemented. A lot of people join a company not knowing what to expect about this policy,” said Jin Yan, senior economist at Revelio Labs. 

Among workers in all kinds of PTO arrangements, 78% said they do not take the maximum amount of time off they are allowed, according to a survey from Harris Poll conducted this April among over 1,000 employed U.S. adults. That survey also found that over half of respondents think unlimited PTO means 20 days a month, though those who have it take less than that.

Another key issue with unlimited PTO policies is a perceived lack of fairness. The responsibility for approving requests — and ensuring a team isn’t overburdened in someone’s absence — falls on managers. Depending on one’s relationship with their manager, they may feel comfortable requesting more or less time off. And managers who poorly handle requests could leave some team members jealous or overburdened. 

If unlimited PTO isn’t working for a company, it’s likely an issue with how it’s managed, according to Catilin Collins, an organizational psychologist and program strategy director at Betterworks. “For unlimited PTO to be effective, it must be role-modeled by managers and leadership. They must take PTO and encourage employees to do the same,” Collins said. 

“Employees work better when they can manage their work-life balance and time and know that they can take time off when they need it without fear of retribution.”

Catilin Collins, an organizational psychologist and program strategy director at Betterworks.

“The organization must also set expectations so that the policy isn’t abused, but rather used for its intended purpose.” Some guardrails might include rules like: not everyone on the same team can be out for the same week; or employees cannot take more than 10 consecutive days off more than once a year, she said. 

“Employees work better when they can manage their work-life balance and time and know that they can take time off when they need it without fear of retribution. Good guidelines and offering support for employees are key to the program working well.”

But many employers are struggling to get it right. Companies with unlimited PTO policies had lower ratings for employee sentiments around work-life balance, culture and values and leadership, the Revelio report found. And job postings mentioning unlimited PTO take longer on average to fill than those that don’t — about 41 days compared to 34. 

While unlimited time off policies typically come up during the hiring process, exact details around how requests work and practices the company follows often don’t, Yan said.

For companies that do implement guidelines or have some general norms, “I think setting that expectation and communicating that with your employees should happen right after they join the company, but I think oftentimes we hear these stories around unlimited PTO practices – and I think employers are falling short.”