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Last year I eliminated our PTO policy.
I called it "unlimited."
The board loved it.
HR loved it.
Finance really loved it.
Let me explain why Finance loved it.
Under the old policy, employees accrued 18 days per year. Unused days carried over. When employees quit, we owed them money. Cash. For days they earned but didn't take.
That's a liability. On the books. $4.7 million in accrued PTO across 2,300 employees.
I made it disappear.
With one policy change.
"Unlimited PTO."
You can't accrue what's infinite. You can't owe what was never counted. The liability vanished. $4.7 million. Gone.
The CFO sent me a bottle of wine.
I told employees it was about "trust and flexibility."
It was about the balance sheet.
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