SAN FRANCISCO — In a bold move that challenges a popular trend in the tech industry, Ryan Breslow, CEO of the San Francisco-based checkout and payment company Bolt, has announced the termination of the company’s unlimited paid time off (PTO) policy. The decision, revealed in a LinkedIn post on Tuesday, was driven by Breslow’s belief that the policy is “totally broken.”
“We just killed Unlimited PTO at Bolt,” Breslow declared. “It sounds progressive, but it’s totally broken.” He explained that the lack of defined time off often results in high-performing employees not taking enough time off, while others may exploit the system by taking excessive time off. “This leads to A-performer burnout, B-performer luxuries, and feelings of unfairness across the board,” he added.
The Shift to Structured Time Off
In place of the unlimited PTO, Bolt will now mandate four weeks of paid vacation for all employees. Breslow emphasized that this change aims to eliminate confusion and ensure fairness. “Every Bolter now gets four weeks of paid vacation (yes, the traditional corporate standard), with the opportunity to accrue more with tenure,” he stated. The policy will be enforced, requiring all employees to take the designated time off.
Breslow further justified the decision by noting the importance of recovery time for maintaining high performance. “If we’re asking people to move fast, build hard, and operate at the highest level, we need to protect their recovery time with the same intensity,” he said.
Industry Trends and Challenges
Unlimited PTO has become a popular perk in the tech industry, touted for offering greater flexibility and autonomy to employees. However, it has also faced criticism for potentially leading to uneven usage among staff. Without a set number of days, some employees may feel pressured to not take any time off at all, fearing it might reflect poorly on their work ethic.
“While the policy can provide greater freedom and flexibility for employers, one commonly cited drawback is that without a set number of days employees must take off, some might not take any off.”
According to a 2022 study by Namely, a human resources software company, employees with unlimited PTO took an average of 13 days off per year, compared to 15 days for those with a fixed PTO policy. This suggests that the lack of structure might inadvertently discourage employees from using their vacation days.
Expert Opinions and Broader Implications
Experts in human resources and organizational behavior have weighed in on the implications of Breslow’s decision. Dr. Linda Hill, a professor at Harvard Business School, notes that structured PTO policies can help ensure employees take necessary breaks, which can improve overall productivity and job satisfaction. “Mandating time off can actually enhance performance by preventing burnout and promoting a healthier work-life balance,” she explained.
Meanwhile, some industry observers suggest that Bolt’s decision could signal a shift in how tech companies approach employee benefits. As the industry grapples with issues of burnout and mental health, more companies might reconsider their approach to PTO in favor of more structured systems that ensure employees take the time they need to recharge.
Looking Ahead
Bolt’s move to a mandated PTO policy reflects a growing awareness of the need to balance flexibility with structure in employee benefits. As companies continue to navigate the challenges of remote and hybrid work environments, the debate over the best approach to PTO is likely to continue.
For now, Bolt’s employees will adapt to the new policy, with the assurance that their time off is both encouraged and protected. As Breslow concluded, “We’re flipping the script: no more confusion.”
As the tech industry watches closely, the impact of Bolt’s decision could pave the way for similar changes across other companies, potentially reshaping the landscape of employee benefits in the sector.
