"In 2000, psychologists Sheena Iyengar and Mark Lepper published a now-famous study on jam. Customers at a grocery store were offered either 6 or 24 varieties to sample. The larger display attracted more initial interest, but people were ten times more likely to actually purchase jam from the smaller selection. Too many options led to decision paralysis - and ultimately, no action at all."
"Unlimited PTO operates on the same psychological mechanism. When there's no defined number of days - no anchor - employees are left to calculate their own "appropriate" amount of rest. And for engineers, who tend to score high on conscientiousness and systems-thinking, that calculation almost always skews conservative. The internal question shifts from "I have 20 days, when should I use them?" to "How much time off is acceptable before I look like I'm not committed?""
"A report from HR platform Namely found that employees with unlimited PTO take an average of only 13 days off per year, compared to 15 days for those with traditional fixed plans. The freedom to take as much time as you want quietly becomes permission to take almost none."
Unlimited paid time off creates a psychological paradox where employees, especially engineers, take less time off than under traditional fixed policies. Without a defined number of days, workers must determine their own "appropriate" amount of rest, leading to decision paralysis similar to the paradox of choice demonstrated in consumer behavior studies. Engineers, who tend toward conscientiousness and systems-thinking, calculate conservatively, shifting their internal question from "when should I use my days?" to "how much time off signals commitment?" Research shows employees with unlimited PTO take an average of only 13 days annually compared to 15 days under fixed plans. The absence of clear boundaries creates silent pressure rather than the autonomy and trust the policy intends to signal.
Read at Silicon Canals
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