Everyone loves a good vacation. Getting out of the office for a few days or weeks at a time can help professionals relax, reset, and regain their focus when they return to work. Yet, Americans in general don’t take much time off compared to professionals in other developed countries. And Americans take fewer vacation days on average than their parents did. Given all that, more and more companies have begun to adopt an unlimited paid-time off policy for their workers.

It may seem risky for business leaders to give their team members the ability to take as many vacation days as they want, but the reality is that this policy can actually act to boost overall business productivity. We’ll explain how here:

Hiring, Recruiting, & Retention

As we’ve established above, people love taking time off, but they don’t do it very often. So it’s no surprise that companies that offer professionals the ability to take vacation days whenever they want hold a key advantage over businesses that don’t. Businesses can use unlimited PTO as a bargaining chip in negotiations to attract new talent. However, unlimited PTO isn’t just a powerful tool in a recruitment strategy. In addition, companies that offer unlimited PTO can also bolster their employee retention levels. Considering just how important it is for growing companies to keep their best employees in house, it’s often a good idea to implement policies like unlimited PTO to keep them happy. 

Improved Morale

Naturally, employees who are able to request PTO whenever they need it will have a better view of their company than employees who have only finite PTO. What’s more, happy employees don’t just boost retention rates –– though that is a significant advantage as well. The simple fact is that happy employees tend to be extremely productive. Professionals who like their job, their boss, and who are able to get the rest and relaxation they need will perform better than professionals who are more restricted in their ability to take PTO. 

Increased Trust & Transparency

It’s crucial for employees and employers to be on the same page and to work toward a common goal. By introducing programs like unlimited PTO, employers can increase the trust and transparency in that essential relationship. For many employers, offering unlimited PTO is simply the right thing to do. An employee shouldn’t have to worry about taking time off to deal with various personal problems. If an employee needs a few days to get bunion pain relief, or to visit a friend going through a rough patch, or to work through domestic issues with their partner, then they should have the ability to do so without worrying about PTO restrictions. When business leaders show their care about their employees as people first and professionals second, everyone will benefit in the end.