At Growth By Design, we believe that rethinking how we work isn’t just a business experiment – it’s a high-impact lever for creating resilience, well-being, and sustainable growth. Unlimited Paid Time Off (PTO) is one of those headline-grabbing ideas, promising ultimate flexibility. But does it deliver on that promise? Let’s explore what really happens when you give your team “unlimited” rest – and how to make it work, intentionally.

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Unlimited PTO: Hype vs Reality

I am a big fan of the idea that we hire adults and adults can manage their work and life balance to drive results and maintain balance in life. Unlimited PTO sounds revolutionary: take the time you need, when you need it, and come back ready to deliver. For many, it’s a major reason to choose one employer over another. Surveys show it attracts top talent and is seen as a sign of trust and autonomy. In fast-moving fields where outcomes matter more than hours, it can serve as the ultimate “we trust you” badge to potential and current employees.

But the reality is more nuanced. Research (and the lived experience of employees) reveals a paradox: when there’s no set limit, people often take less time off, not more. PTO suddenly shifts from being a right to a responsibility. Am I taking too much? Will I fall behind? Will my absence be noticed? In the absence of clear signals, many do the “safe” thing and just keep grinding.

I personally have experienced this. I am a chronic under-user of PTO, so when I was employed at a company that offered unlimited PTO – it wasn’t that big of a benefit. Instead, I found myself unable to fully unplug while on vacation, often thinking to myself, “well, I have unlimited hours, so I can just answer this Slack message quickly”, which invariably turns into multiple slacks, a Zoom, and a project brief.

What Data Shows Us About How Employees Actually Feel

Employee perceptions on unlimited PTO range from enthusiastic adoption (think “of course it should be unlimited, I work for outcomes not hours”) to fervently resistant (e.g., “There are too many slackers in the world who just want a nice payday and not do any work”). It is no wonder then why researchers are studying the effects of this policy to help cut through the noise of our own knee-jerk reactions and see what is actually going on here.

Distilling a lot of research over hte last five years, assessments of unlimted PTO largely boil down to three concerns:

• Uneven Adoption: In organizations with strong, vocal leadership support for taking breaks, employees use PTO more comfortably. Where the message is muddled or team norms are unclear, usage drops, and burnout risk skyrockets.
• Pulled in Two Directions: While workers love the idea of flexibility and most say unlimited PTO boosts mental health and morale, they’re also unsure how much is “okay” to take. According to a recent survey, 85% of employees credited unlimited PTO with a positive impact on their well-being, but utilization rates are lower than with traditional policies.
• The “Always On” Trap: Without clear boundaries, work can creep into personal time. Many report checking emails or feeling they can’t truly unplug – even when out of office. As I mentioned earlier, this was certainly my experience!

Benefits: When It Works

Unlimited PTO wouldn’t be an increasingly common benefit if it didn’t work. So what are the primary benefits of unlimited PTO that employers are realizing?

• A Magnet for Top Talent: Unlimited PTO attracts high performers, those who value autonomy, and those balancing complex lives.
• Burnout Prevention: When leaders truly encourage use, unlimited PTO protects against the “end-of-year sprint” and supports authentic rest, not just long weekends.
• Smoother Operations: No more tracking accruals, no unused days piling up, and less end-of-year absenteeism chaos.
• Signal of Trust: It tells your people, “We measure outcomes, not hours.” This boosts loyalty and retention when done right.

Pitfalls: Where It Falters

Okay great – you’re attracting top talent and your team feels a sense of empowerment. So why are we even talking about this? Well, it turns out that the vague nature of “unlimited” PTO can quickly devolve this seemingly generous policy into on that can corrode employee engagement. Some of the primary pitfalls include:

• Equity Concerns: If some roles can’t realistically take time off (due to workload or coverage issues), perceptions of unfairness grow. Think of your CS teams – they can’t as easily take time off during peak seasons, but your marketing team may have less pressure.
• Underuse = Overwork: Contrary to the “boomer” worry here, the biggest risk is not abuse, but employees taking less time off and burning out – even leaving for companies with clearer support.
• Lack of Clarity: What’s “the right amount”? Without norms, people play it safe and take less, fearing judgment or lost opportunity.
• Implicit Limits: “Unlimited” is almost always subject to manager approval or project needs, making it less “unlimited” than advertised.

Making Unlimited PTO Work: Intentional Actions You Can Take

So what do the leading experts on HR say separates a thriving, healthy unlimited PTO culture from one where burnout festers? The answer is intentionality.

• Model and Normalize Rest: Leaders openly share their own use of PTO. Celebrate time off and make it visible (“What did you do on your unplugged days?”).
• Set Explicit Team Norms: Don’t just say “take time as you need it.” Go further: suggest a baseline number of days, reinforce the expectation to fully unplug, and vocalize that real rest is a job requirement, not a privilege.
• Check In Regularly: Managers should ask, “When’s your next break planned?” instead of waiting for burnout to show up.
• Measure and Adapt: Track PTO usage by team, ask for feedback, and course-correct. Empower HR and managers to spot gaps in adoption and remove perceived barriers.

You May Not Make the Policy, But You Can Help Your Team Make The Most of It

As a leader, you set the tone and standard for how your team engages with PTO. Particularly when operating in an unlimited PTO environment, you need to not just be holding your team accountable to taking time off, but truly being away during that time. This should bridge both 1:1 conversations and group discussions. Here is the best prompt I’ve come across that can help you gauge where your team is at:

“When was the last time you came back to work feeling truly recharged? What helped you unplug, and what got in your way? What can I (or we) do to make sure everyone here feels comfortable taking the time they need for deep rest?”

Use real stories. Share honestly. The goal isn’t to “police” PTO but to create collective accountability for well-being.

Go Make Your Time Off…Work

Unlimited PTO is a flashy, fresh look at a standard benefit – but it is only as powerful as the culture and clarity behind it. Work from anywhere and PTO are fundamentally different things, but in an unlimited PTO environment this line can blur. When you design for intentional flexibility, it is your responsibility as a leader to encourage true rest.

So friends, are you ready to turn the “unlimited” promise into lived reality? Let’s talk about making your time off… work for everyone.

Onward and upward!
Katie