Unlimited PTO Isn't Broken. Your Deployment Is.
Unlimited PTO is getting a bad rap right now.
Depending on your culture, it’s deployed in one of two ways:
Option A (Healthy Culture): "Awesome! I can take time as I need it - this company really values my work-life integration."
Option B (Toxic Culture): "Great. I read that article about how unlimited PTO just helps the company clear financial liability while employees take less time off. Now I feel even more used."
As an HR leader, I am a huge proponent of unlimited PTO. It drastically reduces administrative drag for payroll and HR. It’s an exceptional recruiting magnet for top talent. And yes, it limits financial burden on the company.
So where did it all go so wrong?
It comes down to two things: American work ethic and company culture.
The Unspoken "Miserable Competition"
America runs on hustle culture. The "work hard, play hard" mindset is baked into our DNA.
When people tell me they are wary of unlimited PTO, my first question is always: Where is the pressure to avoid taking time off actually coming from?
Is it truly coming from the company? I’d argue that a massive amount of the struggle is internal.
We feel like we’re taking too much time.
We feel like we’re being judged.
We feel like we’re "gonna get in trouble."
We also want to feel valued and important. When a large part of your identity is tied to your work, the idea that you could leave for a week and everything would run completely fine without you is a little confronting. We convince ourselves we are irreplaceable - even for five business days. "I'll still need to check Slack," we tell ourselves. But do you? Really?
If your coworkers constantly brag about how busy they are and how they haven't taken a day off in six months, that sets the tone. That isn't coming from leadership - that is an internal, unspoken competition for who can make themselves the most miserable in the name of hard work.
Accrued PTO gives humans a clear boundary. Telling someone "You earn 15 days" removes the gray area. Unlimited PTO forces employees to manage that gray area themselves - and without active leadership, guilt wins every time.
Is Leadership Actually the Problem?
Now, if the pressure is truly coming from leadership, it looks very specific. It means an employee who is meeting or exceeding performance expectations asks for scheduled vacation time and is told: "You've taken too much already."
In my 25 years in HR and management, do you know how often I’ve actually seen an employee who is hitting their targets get denied PTO purely because of "taking too much"? Never.
If a company is actively penalizing high performers for taking time off under an unlimited policy, that company is simply not operationally or emotionally mature enough for unlimited PTO.
How to Manage Unlimited PTO So It Stays a Benefit (Not a Burden)
If you want unlimited PTO to actually work, managers have to actively facilitate it. You can't just drop the policy in an employee handbook and walk away.
Here is how you fix it:
1. Normalize the Conversation
Close team meetings with a quick review of upcoming PTO requests. This isn't just so the team can prepare to pick up slack - it normalizes the fact that taking time off is a routine, celebrated part of working at your company.
2. Proactively Open Holiday Schedules
Don't wait for people to timidly ask about Thanksgiving or summer breaks. Open the conversation early as a group so everyone can get the time they want without feeling like they are "stealing" days from their peers.
3. Shift Your Phrasing for Struggling Employees
If you have a team member who is clearly burning out or going through personal stress, don't just give them a passive "You can always take time off if you need it."
Try this instead:
"I know you have a lot on your plate right now, and I’d really like to see you take some PTO next week. What can I help offload so you feel comfortable stepping away?"
4. Call Out the Non-Vacationers
If someone on your team hasn't taken a day off in a few months, talk about it in your next 1-on-1. You can’t force them to take a vacation, but you can explicitly grant them permission and make sure they know you expect them to rest.
The Bottom Line: Boundaries shouldn't require a strict accrual policy to exist. Be the manager you always wished you had, remove the guilt, and lead by example.
