PTO Genius, another startup launching in 2020, encourages employees that their algorithm guesses at risk of burnout — based on factors like long hours and behavioral changes — on vacation. The Service may offer to withdraw unused PTO funds to relieve the employer of such liability. Rob Whalen, co-founder of the six-year-old PTO Exchange, describes a stream of demand this year and says his company currently works with 60 employers including more than 200,000 workers.
“Bernie,” who asked to be identified by a pseudonym for fear of management anger, is a city government employee in Florida. He can draw up to 35 hours of PTO per year – about a fifth of his combined leave and sick leave – and usually the maximum of that benefit. He rarely takes time off, reluctantly pushing colleagues in his small department to do extra work, and sees the program as a consolation. “It’s a way for people to get something back when they don’t have the protections of a union position, which can help workers assert their right to leave,” he said.
Lonnie Golden, an economics professor at Penn State Abington at Pennsylvania State University who studies overwork and worker well-being, sees money-making startups as human nature. America. He can’t imagine them going to Western Europe or Northern Europe, where, he says, “there is social and organizational pressure to spend more time on your non-work activities”. America is the only rich country guaranteed no paid vacation time. Nearly one in four US workers, most of them low-income, receive no PTO at all.
For some employees, trading in their PTO is not a simple transaction — and cash may not be an option. The software platform that the employer uses is highly customizable and can give employees the option to convert the cash value of their retirement into retirement savings, pay the student loans, charitable donations or travel expenses. Some uses may convert PTOs at a higher rate than others.
But cash seems to be what employees want, says Eilat-Raichel of Sorbet. “For the most part, employees just want to use this for gas and for Pizza Hut,” she says — extra help with routine expenses. A former employee of genetic counseling firm InformedDNA, which uses PTO Exchange, says that cash is not an option. She asked not to be named to avoid conflicts with the company. After overeating PTO in the early days of the pandemic, she traded her time for a hotel room at a friend’s wedding. “I’m glad I could use my time for something,” she said. “But I just want to make money for it.”
The employee is also unsure if the value of the hotel equals the value of the time she earns. It may not, given the standard fees of PTO Exchange. InformedDNA did not respond to questions from WIRED about its program.
As the economic environment grows less certain and some companies start reducing staff—Enabling unused PTO payments — Eilat-Raichel sees cash out programs as a way for employers to regain some of the predictability of the balance sheet. But Bersin, the HR analyst, says the potential recession makes employers more focused on productivity. That suggests they should want employees to use all their time, he said, because well-rested people get more done. “You really want to have a work environment where people are on vacation, because then other people feel comfortable going on vacation,” he says. “If you want to give someone some money, just give them money. Why take it out of their time off? “
In July, Javon Garcia left his job at Howard Brown. Nearly two years of working through the pandemic in relative isolation has exhausted him. He’s happy to be able to draw on his time when he needs money, but ultimately what he craves is rest. He is currently traveling through Europe. It’s unpaid – but much needed – time off.
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