One of the more attractive perks for potential applicants is unlimited paid time off or PTO.
But while the premise that there is no cap on the number of vacation and personal days you can use may seem like a dream come true, a global head of HR is going viral as he explains how earning accrued PTO is actually better in the long run.
In a clip that has been viewed more than 71,900 times, a TikToker named Amy explains that with unlimited PTO, your company doesn’t have to pay you for the days you haven’t used (since there’s no limit to it), which means you lose money in the long run if you leave the company.
“Accrued PTO allows you to take time off or get paid for the time they tell you to take time off for your mental health,” she told viewers. “It saves the company a lot of money not to keep this on the books, the amount of accrued PTO they have to pay when someone leaves.”
Many in the comment section were torn, with some saying that having unlimited PTO is worth it when you use your days.
“Unrestricted PTO is the best thing invented,” said one user. “My company encourages it and never denies it.”
“My company offers unlimited PTO,” added another. “My mgmt encourages at least 4 weeks a year.. I take more than 30 days lol.”
Other viewers agreed with Amy, explaining how built-up PTO works better for them.
“I refuse to go for a job with unlimited pto,” one person wrote. “My job has 4 weeks of accrued pto and you can accrue up to 600 hours and sell it again.”
According to data from Timetastic and Stackerthe information and insurance industries have the highest average PTO time allocated to senior employees with an average of 27 days off per year.