StartupNo, that’s not a spelling error. UTO stands for “unlimited time off.” It’s the same policy, or lack thereof, of unlimited vacation, but we like the acronym coined by our marketing rep, Matt.

In this era of cost-cutting, companies increasingly focus on the bottom line. To many managers, it seems reducing the number of employees is the way to go. Others try to limit the benefits of those workers they do keep.

Offering employees unlimited time off can be a good policy for a company trying to improve the bottom line. We don’t measure time off at all, whether it’s a few hours, a half day, or a whole day. Employees give their immediate director a heads up, and as long as they’re confident they’re running at a good pace toward the end goal, they’re free to go.

Yes, the statement that unlimited time off can lead to profits may at first seem counter-intuitive. However, at, we see success by employing this strategy. Sure, it’s already a common trend in startups, but established businesses – like Virgin Group and Netflix – are also starting to realize the positive possibilities of unlimited time off as a way to save money and boost morale.

Here are five important ways that providing workers with unlimited time off can prove valuable, both financially and motivationally, for American companies.

1. UTO Demonstrates Trust in Workers

Trust is the five-letteRaccoonr word UTO is built upon. If an employee has to work from home, trust it. Communication throughout the day is proof enough. To say UTO is a leap of faith is hyperbolic in a time when work-life balance is becoming the norm. UTO can improve the relationships between managers and employees. In the end, everyone benefits as trust increases.

2. UTO Frees Up Time to Focus on Recruiting and Retaining Good Workers

One of the responsibilities of human resources is handling employee leave. Administrators must know just how much leave and vacation someone has accrued while employed. This job can be time-consuming, especially in large companies or those without sophisticated payroll software.

With UTO, human resources departments have more time to focus on hiring and retaining good workers — the ultimate goal of the department in the first place. Additionally, potential employees are more inclined to accept a position with flexible hours, as opposed to a position with a strict clock.

3. UTO Allows for Creativity

Sometimes, the office isn’t the best place to free the mind. Inspiration and ideas go beyond the four walls. And focus may require a different landscape. It’s important to let employees flourish in their preferred atmospheres, whether it be at midnight in a dive bar or at a cafe at 5 A.M.

4. UTO Reduces Workplace Problems

It goes without saying that management cannot rid the office of petty problems. Workers are humans, and humans are fundamentally flawed. Though coexisting is necessary, the underlying stress and aCanyonnxiety remain. The emotional cost can affect overall productivity.

Managing personal life and work can’t always be black and white. Things happen, and sometimes being at work at 9 A.M. isn’t fitting. UTO on a smaller scale works like the “take a penny, leave a penny” system: if you’re late an hour, put an hour in later.

5. UTO Saves Money When Employees Depart

When workers leave the job, employment laws require employers to pay them for accrued sick days and vacations gone unused. Most likely, human resources have to maintain records of these numbers.

Companies that opt for unlimited time off do not have this concern. Given that statistics show that most workers fail to use their full vacation allotments, we believe unlimited time off means sure savings for businesses.

As a shot-caller, don’t fear jumping on the bandwagon of UTO. Your employees will enjoy the ride.

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