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The End Of PTO Policies? | CFO Lounge

The End Of PTO Policies?

Sat, Oct 4, 2008

Down to Business

Some companies like Netflix are doing away with PTO altogether. PTO policies are abused day in and day out by employees around the country and human resource departments are tired of policing them.

If a company decides to do away with a PTO plan, the benefits are essentially:

1) the Company no longer has to carry a liability for earned PTO (improving liquidity ratios and net working capital), and

2) the Company doesn’t have to worry about enforcing a policy that is prone to fraud and abuse. Employees are basically allowed to take as much time off as they like (with supervisor consent) so long as they get their shit done.

I’m personally still on the fence on this one. A company can clearly manage PTO abuse if they want to - fire employees who abuse the policy, put caps on PTO accruals and make employees take time-off. Doesn’t seem so difficult to me…

This post was written by:

Chad Cohen - who has written 51 posts on CFO Lounge.

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4 Comments For This Post

  1. Whip Cracker Says:

    Vacation is for wimps. You are better off without those people.

  2. Chad Cohen Says:

    Just chain employees to their desks if you want them to be highly productive…works for China

  3. earth4energy Says:

    I do agree with all of the ideas you have presented in your post. They are really convincing and will definitely work. Still, the posts are very short for novices. Could you please extend them a bit from next time? Thanks for the post.

  4. App For Android Says:

    I like Your Article about The End Of PTO Policies? | CFO Lounge Perfect just what I was looking for! .

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