What is PTO you ask? Well I’m here to tell you all about it.
If you grew up in my generation, PTO is probably not a term you hear often- especially in the workplace. This is because [IMHO] all of us have started our career after the Great Recession at a time where the prepared, educated supply of workers exceeded the demand for them (see previous adulting article).
When I started my first job, after graduating with two BA's from a major university as magna cum laude, I was not offered PTO, health benefits, vacation, or even free coffee in the break room. I started at $13 an HOUR after having graduated with TWO bachelor’s degrees in business and psychology.
Now some of you may know I’m not from around here. I was born in Venezuela and lived there for a little while when times were good- so until about I was nine years old. When Venezuela elected a new president in 1999, Chavez, the country basically went to shit for lack of a more effective expression. The economy plummeted while violence and crime rates were at an all-time high. However, before that happened, Venezuela was once the richest country in Latin America. So back in my parents’ days, if they studied hard and went to a good university with a marketable degree, you could eventually earn something like $100 grand a year. However, the educated versus non-educated population ratio was pretty high, and the educated were taking all the jobs by storm. Because of this, the competition was not as tough as it is in America nowadays. That was the "Venezuelan dream." But not everyone had access to a good education and there was a lot of poverty, etc… When my parents decided to leave Venezuela to pursue the “American Dream” this time, they thought it would be somewhat similar to what they had experienced in their home country. What they didn’t know was that they were in for quite a shock. A culture shock
My parents naively but wholeheartedly believed that if I, like them, studied reaaaaallly hard and went to college, I too would land a job that would pay me like $100K a year with health insurance, sick days, a 401K and PTO. Unfortunately, like I said- right after graduation all I could find were jobs where I earned $13 with ZERO benefits. This was pretty standard for any jobs I applied to because of my run-of-the-mill business degree. I don’t know if the job market was just more saturated in my area for these types of “entry-level” business jobs I was applying for- or what. But I began to realize the reality that my GPA, internships, accolades, and personality did not matter when ALL well-paid, "entry-level" jobs required “at least 5 years’ experience in the field” and a whole new set of skills that I was NOT taught at school. But I’ll delve into that in ANOTHER video...
So I gave in and worked (or should I say over-worked myself) at several startups (the only ones who would take me), and took courses online to learn more extensive, practical marketing skills like business tools and software. I was eventually “hire-able” for jobs that offered health benefits- all of a sudden I qualified for medical, vision and dental! No more mommy and daddy’s insurance! I was very proud. But only until VERY RECENTLY did I find a job with the elusive unicorn in today’s job market: PTO.
PTO stands for “Paid Time Off.” Is this time off that you can get paid for but NOT be working at all? YESSS. You got it! Does this mean paid vacations? YESS. BUT THAT’S NOT ALL!
I know it doesn’t make much sense right now, but it works when you think of it like this:
PTO is an all-encompassing “bank” of paid EXTRA hours that you accrue just for going to work every day. The more you show up to work, the more paid hours you accumulate. Then, these hours become a “savings” account of TIME. That’s right. So you can use this precious resource for anything from vacations, sick and personal days off, as well as holidays— which can have its own PROS and CONS.
Of course, with PTO, you can choose how to use your own time. YOU can decide what to "spend" your time on- which is our most precious resource. BUT there's always a catch. It has become increasingly difficult to decide WHEN to use that PTO. Most employees feel somewhat obligated to go to work as much as possible- I know I only use my PTO when I feel like I'm so sick and I must be dying or if I show up at work I will probably projectile vomit on every cubicle within a 5-foot radius. And I'm not the only one. A 2016 survey released by Wakefield Research found that 69 percent of working Americans don’t take sick days, even when they’re legitimately ill and offered PTO for it. I think we simply feel guilty having to make a PTO decision- we don't want to look like we are sick all the time, or that we are not as committed to the job compared to others.
Apparently, in the American “workaholic” culture, about 54% of employees make this mistake because they believe they’ll just be replaced if they use PTO, according to a survey by Glassdoor. It doesn’t help that most companies in the states have some sort of “at-will” policy where employers can fire their employees without just cause unless there’s discrimination. You can imagine how self-conscious an employee must feel when they know they are being evaluated based on performance- what if missing a couple of days of work takes your name OFF the shortlist for a promotion?
But DO people with less PTO statistically get promoted more? According to CNBC, not at all. In fact, they cited a report from 2017 that found people who use their vacation days are actually more likely to get a promotion or a raise. Why is that? How is that even possible? CNBC offers some possible explanations:
Maybe a vacation really does “recharge” your batteries so you can come back to work feeling fresh and in turn, be more productive at work.
Or maybe it’s backwards: the people who are more likely to get promoted feel more comfortable taking a vacation?
Personally, I have seen that whenever I leave to take a vacation from work, my boss realizes how important my work is and why he hired me in the first place! It’s like they say “absence makes the heart grow fonder,” or in this case, it makes my wallet grow bigger...
So as you can see- when it comes to PTO, it is definitely worth taking a few days off! Especially now that you know how it works- it’s up to YOU to make the decision whether you want to use your paid hours or not. Well most of the time. Some companies enforce employees to use their PTO with "use it or lose it" policies where you may be obligated to use ALL of your PTO hours before the end of the year or you’ll lose them! This is because some companies do not offer PTO that “carries” over to the next working year, or “rollover” PTO. The policy depends on the state and company that you are working for. If the state allows “use it or lose it” policies, employers can mandate that unused PTO days expire at the end of the year or within a set period of time. If the state does not allow “use it or lose it” policies, PTO can accrue over time- but only if the company decides that's the policy it wants to implement.
I hope you found this article helpful in answering your question "what is PTO?" Whether you are in the job market or in a company that offers PTO, now you know how it works. Always remember to check the "use it or lose it" policies at your job. If you would like to hear this article rather than read it (because "ain't nobody got time for that"), you can always tune in on my channel while working & multitask while learning something new like a boss- below: