Why businesses prefer unlimited PTO

An increasing number of businesses seem to be offering unlimited PTO policies to their employees. While this is typically marketed as a huge perk for employees, there's also a good business justification. Unlimited PTO allows the business to eliminate the outstanding liability of accrued PTO. In other words, the business no longer needs to pay employees for vacation days that they never use, which may be up to a month's salary, when they leave the company.

Moreover, by offering unlimited PTO, the business is able to remove processes needed to keep track of how much PTO each employee has left.

And, culturally, an unlimited PTO policy may result in employees taking less time off than they would if they had a fixed amount of time off, which means that the business can get more productivity from employees for less money.