About eight years ago, I was sitting with a director of human resources interviewing for a position at a professional association. I recall, many things about that interview, but one thing she said stood out to me. She highlighted the fact that as an association, her organization was rich in benefits but perhaps not the salary that everyone wants. 

Fast forward to today. Although I was never offered the job, the idea of flexible benefits within the association space still appeals to me now. Growing up in a blue-collared family, my parents knew that “punching a time clock” was their life for more than 30 years. I knew at an early age that work-life balance was important to me, which ultimately was one of the key reasons that led me to a career in association management.

Now, sitting at my fifth association, third in which I’m a member of the senior leadership team, I’ve been part of several conversations about how to attract and retain top talent using compensation and flexible benefits through a competitive analysis.

Admittedly, I’ve been quite surprised by the fact that as association professionals we tend to be risk averse with respect to flexible employee benefits, yet this level of risk is not at all comparable with the market. Conversations about flexible benefits, like unlimited personal time off, inevitably focus on how professionals might abuse or use the system, which could put the organization at risk. These are all valid points, but let’s be honest, every action involves some risk, so you have to ask yourself, where does the danger line sit?

According to an article published by the Society for Human Resource Management, competition for talent is increasing. Meanwhile, the talent pool is increasingly reflective of the most diverse workforce we’ve ever seen, and the U.S. Travel Association’s (USTA) State of American Vacation 2018 [PDF] reports that paid vacation is the second most important benefit to employees after healthcare.

Given the changing job market, vacation is now a priority and work-life balance is an expectation. Unlimited PTO is an untapped opportunity for association executives to consider.

Here at the National Society of Collegiate Scholars (NSCS), we offer unlimited PTO without restriction. The premise of this benefit lies in a shared philosophy of managing performance, not presence and hiring and cultivating strong managers with ongoing training. We also encourage the entire team to have face-to-face dialogue and open communication constantly.

Given the changing job market, vacation is now a priority and work-life balance is an expectation. Unlimited PTO is an untapped opportunity for association executives to consider.

“When interviewing, candidates are always taken aback when I discuss the benefits including the unlimited PTO,” says Helene Meyers, NSCS’s senior HR consultant with The HR Team, Inc. “Many feel that it’s too good to be true, so it must not be, however, the fact is we treat people like the professionals they are.  We empower our employees to be clear about their role, their goals and deadlines, and that taking the time to be personally healthy allows each employee to bring the best version of themselves to work each and every day.”

Before adopting a PTO policy, here are three important questions to consider:

1. What is the cost of unlimited PTO? This depends on how your organization manages cost. There is an inherent cost in ongoing training and coaching, as well as the few who may abuse the policy. Many new parents take advantage of this benefit, and at times, you may need to engage temporary staff or reassign the team’s workload temporarily. Most importantly, accrued and unused vacation is no longer a direct cost to the association and there is no payout when an employee departs. Unlimited PTO also takes the place of short-term disability.
2. How do you handle the abuse of the benefit? This is dependent on identifying and communicating what abuse look likes, then addressing it. Believe first in positive intent, then address any issues immediately and fairly. According to another USTA report [PDF], the average amount of vacation days used by an employee in the U.S. is 17.2 days per year, and the State of American Vacation 2018 [PDF] notes that 52 percent of the U.S. workforce has unused vacation days at the end of the year. So, I would question the likelihood of an abuse issue. For NSCS, the benefit is managed within the framework of organizational needs and the employee’s satisfactory performance. If there is an issue with either or both, then the manager can reject planned PTO. Of course, if the management of an employee’s use of a benefit is taking too much time, then one should call into question whether the employee is still the right fit for the organization.
3. How does an organization ensure equitable management of unlimited PTO? First, the benefit needs to be clearly developed, written out, and explained in your employee handbook. Similar to organizations with a set number of vacation days, the manager may or may not approve requested leave based on the organization needs and the employee’s satisfactory performance. An upfront process and constant communication about the policy with new staff can help to ensure equitable management too.

For an association, unlimited PTO can be an attractive flexible benefit. With the right oversight, control, and use, this policy can be an excellent way to recruit and retain top talent to your organization.