An HR Specialist Explains Why Unlimited PTO Can Hurt You In The Long Run One TikToker is going viral after explaining why accrued PTO is better than unlimited days off.
By Emily Rella
Opinions expressed by Entrepreneur contributors are their own.
One of the more alluring benefits for prospective job candidates is having unlimited paid time off, or PTO.
But while the premise of having no cap on how many vacation and personal days you can use seems like a dream come true, one global head of HR is going viral for explaining how earning accrued PTO is actually better in the long run.
In a clip that's been viewed over 71,900 times, a TikToker named Amy explains that with unlimited PTO, your company isn't required to pay you out for the days you didn't use (since there is no limit to them), which means you're losing out on money, in the long run, should you leave the company.
"Accrued PTO ensures that you can either take time off or you are paid for the time that they say you should take time off for your mental health," she told viewers. "It saves the company a ton of money not to carry this on the books, the amount of accrued PTO that they have to pay out when someone leaves."
@hackyourhr Accrued PTO > Unlimited #hackyourhr #corporate ♬ original sound - Amy | Hack Your HR
Many in the comment section were torn, with some saying that having unlimited PTO is actually well worth it if you use your days.
"Unlimited PTO is the best thing invented," one user said. "My company encourages it and never denies any day."
"My company offers unlimited PTO," another added. "My mgmt encourages at least 4 weeks a year.. I take 30+ days lol."
Other viewers were in agreement with Amy, explaining how accrued PTO works better for them.
Related: How Not to Dread Returning to Work After Vacation
"I refuse to go for a job that has unlimited pto," one person wrote. "My job has 4 weeks accrued pto and you can accrue up to 600 hours and sell it back."
According to data by Timetastic and Stacker, the information and insurance carrier industries have the highest average PTO time allotted for senior-level employees with an average number of 27 days off or year.
