Get your summer back: How to establish the right PTO policy for your company

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Summer vacations traditionally end once people enter the workforce, with many workers feeling uncomfortable taking extended periods of time off. However, this CEO believes with the right PTO policy and mindset, adults can have their summers back. 

Cameron Yarbrough is the co-founder and CEO of talent development platform Torch.io, which boasts an unlimited PTO policy — but as much as Yarbrough is confident in Torch's approach to time off, he knows it won't work for every company.

"When unlimited PTO was originally rolled out around 10 years ago in Silicon Valley, it was a  very employee-centered policy that encourages people to take time off to keep their mental health in balance with their work," says Yarbrough. "But as it turned out, in some cases, it can work against employees."

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On average, Americans take 17 days off per year, while workers with an unlimited PTO policy take between 10 to 13 days off, according to work and HR-centered sites like Namely and Joblist. On top of that, Insider found that 29% of people with unlimited PTO policies admit to spending their vacation working, and 42% shared that they "always" log on to their work emails during time off. In other words, unlimited PTO does not automatically equate to an abundant amount of rest and relaxation.

"Ultimately, this is partly psychological," says Yarbrough. "When people feel they have an abundance of something, they tend not to take advantage of it. If something is served up to you as a scarce resource, you likely engage with it more."  

Does that mean a numbered PTO policy is likely the better option? Yarbrough admits that it might be, depending on whether company leaders actively encourage workers to take time off.

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"When I take vacation, I actively announce it in all-hands meetings and say I'm going to be gone for a few weeks with my family," he says. "I say that if you haven't scheduled a vacation lately, to please think about it."

In turn, Yarbrough encourages other executives to do the same, underlining the importance of workers seeing the PTO policy being used by the C-suite. Managers should also check in with their teams and remind them to get PTO on the calendar, he says. If leaders have an enthusiastic approach to PTO, then an unlimited policy can be an effective choice.

"If you're an HR leader at a company where you know not every leader will advocate for people to take a vacation and create a sense of safety around the concept of vacation, then you may want to advocate for an explicit vacation policy," he says. "But if you're an HR leader and know leadership will model healthy behavior when it comes to work-life balance, then advocate for an unlimited policy."

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While Yarbrough admits there is no "magical number" when it comes to how much PTO a company should offer, he notes that companies should cultivate cultures where employees feel comfortable taking five or six weeks off a year — in addition to sick days. "If people are taking less than that, it's a red flag," says Yarbrough. 

He also advises HR leaders to consider whether employees have the space to recognize their need for rest. For example, at Torch, Fridays are meeting-free and serve as a day that employees can use to check in with themselves, explains Yarbrough. 

Beyond a supportive work culture, Yarbrough encourages employees to foster a better relationship with PTO. He admits that this may be challenging in American work culture, where taking time off immediately comes with feelings of guilt or concerns about falling behind.

"Anytime we have an unhealthy mindset around something, it's helpful to practice self-awareness," he says. "There's this fear that you won't measure up or your colleagues will think poorly of you, but that's an old story. Add positive self-talk and think, when I do come back from vacation, I'll be more energized, creative and refreshed."

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