It’s not Unlimited PTO or Accrual! Both are flawed, but I have a Plan! (The Sackett PTO Plan!)

Okay, I promise, after this post, I’ll stop talking about this subject!

I will tell you when I started this conversation over a tweet my friend Matt Charney put out, and a subsequent viral LinkedIn post on the same subject, there are clearly two very opinionated sides to this issue!

Side Unlimited PTO (UPTO):

  • There’s nothing like the idea of being able to just take time off when you want and not having to worry if you have the ‘time’ or not saved.
  • Yes, we know the data, and it says on average people use less time, but that’s my choice.
  • If you work at a company with a great culture and leadership, this is the only way to go. It’s a beautiful day and I want to take my child out for a picnic, but oh, I only have five days left for the year, I better save those. That choice sucks.

Side Accrual:

  • UPTO folks are idiots that don’t understand this is a scam that benefits companies, not employees.
  • Accrual is better because if I decide to leave the company the company has to pay me the time that I’ve banked.
  • When I take accrued time off it feels earned, thus I don’t feel like I need to work while taking the time off.

The Facts about Paid Time Off (PTO):

  • Any PTO plan sucks if you work in a toxic culture where you feel stressed to take time off.
  • Unlimited PTO is a fallacy. No organization is going to let you take off the entire year of work paid and not fire you. Grow up.
  • If your reason for liking a plan is that it’s nice when you leave the organization. That plan is a broken benefit for the organization.
  • Every employee should feel comfortable to stay at home when they are sick. Meaning, they will get paid and not feel pressure to show up and risk getting others sick.
  • There is no perfect PTO plan because we all value our time differently.

What’s the better PTO Plan?

Here’s what we know. Making a statement like, “Why don’t we just act like adults” shows me you don’t have a clue about how complex this issue is. The pandemic basically killed the standard UPTO plans moving forward. “Oh great, you offer UPTO!? So, like during a pandemic you’re going to keep paying me fully for three months!?” Um, well, not exactly…

You can say Accrual is the way to go, but the vast majority of folks said the only real benefit for Accrual is that it’s a termination insurance policy. So, that doesn’t work either! If the goal of PTO is to make sure people take time off to recharge and be healthy, saving it for when you get fired isn’t a good plan!

Here’s the Sackett PTO Plan to save America:

  1. If you are sick with a communicable disease, you must stay home until you are released to come back to work by a medical professional. We all have the ability to use Teledocs now, this isn’t difficult. The company will continue your pay. If you can work from home and have the ability while at home recovering there is an expectation you will do what you can. (You’re an adult, right?)
  2. If you take care of someone else and they are sick and need your care the company will cover that cost of you staying home and taking care of them. Again, Teledoc, show me that this is real and we are all good, take care of your loved one.
  3. You must take three weeks of vacation per year, minimum based on your plan/organization/FTE status/etc., in increments you feel are necessary for your lifestyle. So, low end you get three weeks, high-end is up to organizations and your ability to negotiate.
  4. You will get “X” number of holidays paid for – let’s not get silly no one needs Arbor Day off, and yes, we’ll give you your birthday off paid.
  5. You will get automatically 2 weeks no-fault termination/leave pay, at a minimum based on your level of position, when you leave the organization. Whether we fire you or you decide to leave on your own, makes no difference. No reason to “save” our vacation time any longer.
  6. There is no carryover of vacation time from year to year. Want to take a month off to travel around Europe? Be a great performer and you shouldn’t have a problem.

Did we cover everything? Sick time is covered. We will force folks to take time off for wellness. You get paid holidays. You get money to leave. If you perform really well, you get flexibility.

I think this is a plan that I would feel like I’m being taken care of by my employer. Yes, it’s expensive, but so is finding and training great talent. Could someone take advantage of this plan? Yes, and I would fire them. For the record, that usually stops others from trying to take advantage.

Have a better PTO plan? Hit me in the comments!

Also – don’t forget to check out the HR Famous Podcast where Kris Dunn, Jessica Lee and I debate this topic. They got it wrong and I got it right!! Well, maybe…

1 thought on “It’s not Unlimited PTO or Accrual! Both are flawed, but I have a Plan! (The Sackett PTO Plan!)

  1. The only thing I have seen better is UPTO where the company “forces” you to take a minimum amount of time off. One startup turns off your email during that time. Another startup even pays for your trip (for a week).

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