When a company provides unlimited PTO, is that considered a red flag?

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Every time I've worked somewhere that had unlimited PTO, there was always a lot of social pressure to not "abuse" it or it would get taken away. When I have a set amount of time off, I feel like I can take my time off without guilt. When it's "unlimited", I feel like I have to take less in order to be a "team player". I used to love the idea of unlimited PTO until I actually had it.

likesmarthelpful

Yes. They won't need to pay out your accrued/ remaining/lost vacation days in states that require it

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It's a red flag.

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I think you nailed it. 25 years ago when I took vacation, I disconnected and enjoyed it now I drag my company laptop and cell phone because “you are really NEVER off, you not be in the office but you aren’t completely off and all of us have grown to expect 24/7 on call. I would love to hear what someone working in benefits has to say as the real reason.

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Yes.

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Red flag if it’s a consulting firm

It’s alright at other places.

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I agree 100%. My company switched to it this year and I would rather take my KNOWN time and then if I don’t use it all, which I rarely took the 4 weeks I had but I knew what I accrued.

I really am skeptical of the reason, I don’t think it was for the benefit of the employees. I think overall people will end up talking less overall PTO. I am sure there is some study that shows companies saving money and keeping more people working than fixed or earned PTO.

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It depends on company culture, your manager, and you. Studies show that employess often CHOOSE to take less vacation with unlimited PTO because they are nervous about how they will be perceived. I have taken a 3 week vacation this year and last year plus various mini vacations and it's all good. As long as you communicate and get approval, then you can do whatever.

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Big red flag 🚩. Only the Company benefits from unlimited PTO. Employees get screwed. It’s just an excuse for the Company not to pay you for accumulated PTO time. When BKD merged with DHG we were “converted” to unlimited PTO. Now your PTO time is weighted against your utilization percentage. So if the powers that be feel you are “not being productive and working enough hours” your PTO requests can be denied. I’ve seen this happen in our office. Long time staff who were maxed out earning 200 PTO hours per year are being limited to 120 - 150 due to “realization goals”. Unlimited PTO doesn’t exist. You’ll always be at the mercy of management’s ever changing whim.

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Honestly, it depends on the company and their culture. I'm in sales and commission based, so there's no incentive to use unlimited PTO. But if the company has a great culture, I wouldn't necessarily consider it a red flag. Is the company remote, in-person or hybrid? That also might help you decide.

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Well the company is GC so it is more in person at the office.

It’s always a negative

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I have taken less than ten days of my unlimited PTO in 3 years.

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Poor decision

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I think unlimited PTO is a scam but I wouldn’t call it a red flag

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It is to me.

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Yes, less PTO the better

funny

This question is the red flag

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Nah, they could be trying to just save money from spending money on pto when people leave, I guess if turnover is high it could be a red flag. But coming from a employee who works for a company that doesn’t have unlimited pto, I still don’t take my pto for fear of running out if I need it for something important one day.

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Nope. Not a red flag 🚩 whatsoever. You earned it & deserve it.”

I’m 1 who always enjoyed it. I prefer sleeping in 1-2x
a week or to run morning errands etc., without having to “ rush”. take a nice long drive.or the gym.” 😊 so I appreciate PTO. Adiòs.

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None of these "advantages" are due to unlimited PTO. Anyone with accrued PTO can do these things.

likefunny

I’ve worked at great companies with flex pto. It’s not my favorite but it beats having only 15 days or fewer IMO.

Yes

lol, no

Nope

Sign me up. LOL

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