Unlimited PTO… The Pretend Time Off with Addam Gordon & Ulises Orozco of PTO Genius

2020-08-13

But we have unlimited time off! Why would anyone not want to join a company with such a progressive time off schedule? Asked founder Sanjeev. Two reasons, One PTO is a perk not a reason for joining a company. People will join and stay at your company when they believe in your vision and experience professional growth. And Two, your company is a start up. No one is going to believe that with the aggressive production cycles that they can just take off and take advantage of this policy. Our guest today: Adam Gordon & Ulises Orozco, Co-Founders of PTO Genius With over 30 years of HR tech experience and a focus on employee benefits and leave management. Adam & Ul...

But we have unlimited time off! Why would anyone not want to join a company with such a progressive time off schedule? Asked founder Sanjeev.

Two reasons, One PTO is a perk not a reason for joining a company. People will join and stay at your company when they believe in your vision and experience professional growth.

And Two, your company is a start up. No one is going to believe that with the aggressive production cycles that they can just take off and take advantage of this policy.

Our guest today: Adam Gordon & Ulises Orozco, Co-Founders of PTO Genius

With over 30 years of HR tech experience and a focus on employee benefits and leave management.

Adam & Ulises are serial entrepreneurs who founded PTO Genius to help companies increase job satisfaction, attract/retain top talent and lower payroll liability by re-imagining what employees can do with paid time off.

Today we discuss:

The pros & cons of Paid time off structures
How to implement the right structure for your unique company

Challenge today with Paid Time Off?

Potential liability for the company because it creates an environment where not self managed, managed like a traditional policy. Too dependent on the individual manager approval.

Using unlimited as a marketing tool. But there really is no unlimited
Creates more legal liability
People either don't take time off or too much time off
The bedrock to unlimited PTO is good culture. The bedrock of trust which can NOT be managed by managers.

Why is this important to the company?

Culture
- Trust
- Mutual respect
- Accountability
Unlimited PTO looks desirable to avoid the liability of the employment contract
- Avoid the management
- Payout at the end of employment

Rick’s Nuggets

PTO is not a reason why people join your organization
How PTO is managed/supported is a snapshot of your leadership style (which is the root of why people stay or leave your company)
Benefits & perks are icing not the cake.

How do we do implement the right PTO policy?

Questions to Ask First: Can we trust our employees? Do I want to give managers the authority to manage when people are away?

Starts with leadership and how you value the employee
Communication- transparency
Being Vulnerable as leaders

Start with the right culture. Most startups should start with a traditional PTO model

Better to keep yourself out of a legal liability.
Can't eat the cost of litigation
Employees with unlimited PTO end up taking fewer vacation days than their limited PTO counterparts (13 days versus 15 days). SHRM source link HERE

If you want to implement an unlimited PTO policy

Ask yourself if you are really built for it?
Don't call it a “unlimited” policy but a “Self Directed” PTO
Document the policy
- Define non starters- set up bumpers
Manage that everyone has access to time off
Encourage time off
- Creative time off incentives
Assignment & tracking should be no disruption to workflow
- Set up a calendar where people know when people are off
- Hand off before someone goes away

Rick’s Nuggets