Author: Blake Babcock
I took to LinkedIn and posted a poll “Which model do you prefer? Unlimited PTO or Set PTO” to see if given the choice what the quick answer would be. Unlimited PTO won (163 total votes: 67% Unlimited & 33% Set) and no shock to me as humans are not only irrational, but predictably irrational.
“Not only are we irrational, but we are predictably irrational. Whether we are acting as consumers, businesspeople, or policy makers, understanding how we are predictably irrational provides a starting point for improving our decisions making and changing the way we live for the better.”
“It’s no secret that getting something free feels very good. Zero is not just another price; it’s an emotional hot button – a source of irrational excitement. Most transactions have an upside and a downside, but when something is FREE we forget the downside. When something is free we make it way more valuable than it really is. We are afraid of loss and when something is free we seemingly lose nothing.”
Of course, you’re going to say…”is this a trick question? I’ll take the unlimited.” If I offered you free Chipotle (I should have made someone sponsor this portion to put their product here) once a month for a year or free unlimited chipotle for yourself whenever you wanted it for a year, you would quickly and irrationally choose free chipotle whenever you want it. There are consequences to unlimited chipotle from a dietary perspective and from a logistics perspective. How far out of your way are you going to get your free chipotle 3x a week?
So which is better? Unlimited or set?
My assumption is that employees want unlimited because they don’t trust the company to give them a fair amount of time to begin with. If a candidate or employee doesn’t don’t trust the company culture to provide a fair and incentivized structure, how on earth could they trust the organization to support a culture of unlimited?
Check out the comment section from my post and feel free to join the conversation.