Is unlimited PTO good for employees?
More than half (55%) of tech employees reported compensation and benefits as the biggest considerations when examining a job offer, according to a recent Hired report. Benefits including health insurance, tuition reimbursement, relocation assistance, and vacation time are all valuable for employees when considering a job. Some of the tech companies with the best benefits include Facebook, Salesforce, Google, Adobe, Tesla, Amazon, Intel, IBM, Dell, Reddit, Zillow, and Airbnb.
SEE: Special report: IT Jobs in 2020: A leader's guide (free PDF) (TechRepublic)
One of the latest trends in employee benefits is the growth of so-called unlimited vacation, according to an Indeed report released on Tuesday. The share of job postings that feature unlimited vacation has increased from 450 postings per million in May 2015, to nearly 1,300 postings per million in May 2019-a 178% increase.
Tech companies, in particular, are approximately six to eight times more likely to offer unlimited vacation or open PTO in their job posting, the report found. As of May 2019, more than 8,500 tech job postings per million had "open PTO" or similar keywords in their descriptions.
While some believe unlimited vacation could lead to higher productivity and job satisfaction, if workers aren't able to accrue unused vacation hours, then employers aren't obligated to pay it out, the report said.
Questions also rise surrounding sick hours. California is one of the first states to begin adopting unlimited PTO, resulting in subsequent growing pains. Currently, employers that have transitioned to unlimited PTO are able to avoid paying employees previously accrued vacation or sick time to employees upon termination.
However, this new benefit could be very appealing to new hires, especially younger generations. Gen Z and Millenials are always looking for job positions that offer schedule flexibility, and unlimited vacation offers just that.
For more, check out The 10 workplace perks that tech professionals want the most on TechRepublic.