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Choosing upfront PTO versus accrual or unlimited
Choosing upfront PTO versus accrual or unlimited

Why People by Wagepoint suggests using an upfront PTO policy

Melissa Benzo avatar
Written by Melissa Benzo
Updated over a week ago

Here at People by Wagepoint, we want our employees to feel energized, productive and engaged. Time off is just one of the many benefits our team uses to achieve this.

Studies show employees who use all of their time off each year are more likely to receive a bonus, promotion or raise. The same studies also show that upfront policies are more likely to be used in their entirety than accrual policies.

At People by Wagepoint, we have found 15 PTO days in the first year to be the best amount for our team members. For us, that means we expect the first-year employee to be out of the office a minimum of 15 days. Additional requests beyond the 15 days are usually accepted as long as the employee is in good standing and meeting her or his goals and deadlines. 

Of course, this is negotiable. An entry-level employee may find a minimum of 15 days off perfect, while a mid-to-senior level employee who has earned 20+ days in their past position would find this inadequate for the work/life balance they're used to.

In speaking with our customers, we've found that any less than 15 days creates what's called a "scarcity mindset." This is when the employee is worried to use any of their days to relax and unplug in case something happens later on, forcing them to take time off.  Some of these events could include a car breaking down or having an unexpected event happen at home they need to tend to.

We all know that using PTO for these kinds of events aren't recharging. We can't expect our employees to use their PTO for this and come back from the benefit feeling refreshed.

In addition to 15 days of paid time off, we also give People by Wagepoint employees a minimum of 5 sick days and 7 bereavement days. Losing someone close to us (family or not) is a big deal and needs to be dealt with. Life is so much more important than work. A minimum of 7 days is expected and we work internally to fill the gap entirely while they are gone. 

As for sick days, cold and flu season typically hits at the beginning of the year and wipes out a few days. We don't want to put employees into the scarcity mindset we mentioned earlier due to this, so having at least 5 days on the table allows them to do their best work and not feel it necessary to log in at 9 am sharp with a blinding headache in late November.

On the flip side, large amounts of time off or unlimited policies often have the opposite effect. Great employees likely won't use the time because they don't want to seem like they are taking advantage of it. Or, they know that the time is there so they keep putting it off and eventually become burned out because they used too little. You can read more about that here.

Unlimited time off policies can also cause some legal issues when an employee is terminated. Check out some of the latest problems here.

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