Unlimited Paid Time Off (PTO) policies are becoming increasingly popular, especially in industries keen to promote flexibility, autonomy, and work-life balance. On paper, the concept sounds ideal — no set holiday allowance, just take the time you need. But how does this play out in practice? Are people truly taking more time off, or is this policy creating a culture of guilt and uncertainty?
The Appeal of Unlimited PTO
Employers often roll out unlimited PTO with the best intentions. The goal is to demonstrate trust in their staff, reduce burnout, and offer greater freedom to recharge. From a recruitment perspective, it’s also an appealing benefit that can differentiate a company in a competitive market.
Candidates are increasingly seeking roles that value wellbeing and flexibility. At face value, unlimited PTO ticks both boxes. However, when we look beyond the headlines, the reality can be more complex.
Do People Actually Take More Leave?
The short answer: not always.
Surveys and studies have shown that, paradoxically, people with unlimited leave entitlements often take less time off than those with fixed allowances. Why? Because without a clear benchmark or defined minimum, many employees feel uncertain about what’s acceptable.
This ambiguity can breed anxiety. If nobody else in the team is taking extended holidays, individuals may fear appearing less committed. In some cases, staff end up working longer hours and skipping breaks altogether — exactly the opposite of what the policy aims to achieve.
Is It Just a PR Tool?
Some critics argue that unlimited PTO can be a cleverly disguised cost-saving strategy. If there’s no formal holiday accrual, companies might save on payouts for unused days when someone leaves. Moreover, it can be used as a shiny perk to attract talent, even if workplace culture doesn’t support its use.
If employees feel uncomfortable actually using their entitlement, the policy becomes performative — a benefit in name only.
Getting It Right
The success of unlimited PTO lies not in the policy itself, but in how it’s implemented. A few key principles can make a big difference:
- Leadership by example – If senior staff visibly take time off and encourage others to do the same, it sets a powerful precedent.
- Minimum leave recommendations – Suggesting a baseline (e.g. at least 25 days) helps employees gauge what’s appropriate.
- Open conversations – Clear, regular communication about expectations and workloads prevents the buildup of guilt or confusion.
- Tracking for wellbeing, not control – Monitoring time off isn’t about checking up on people, but ensuring they’re resting adequately.
Final Thoughts
Unlimited PTO isn’t inherently good or bad — it’s all about context. When supported by a healthy culture and genuine trust, it can offer employees real autonomy and improve overall wellbeing. But without the right structures in place, it risks creating more pressure, not less.
At Proximity Recruitment, we believe benefits should be meaningful, not just marketing material. Policies like unlimited PTO must be backed by supportive leadership and a culture that truly prioritises balance — not just productivity.
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