Latest news with #employeeBurnout
Yahoo
4 days ago
- Business
- Yahoo
Bolt's millennial founder has just ‘killed' its unlimited PTO perk because it was actually causing burnout
As companies like double down on unlimited PTO benefits, the boss of $11 billion fintech company, Bolt has just axed the policy altogether. Its millennial founder and CEO Ryan Breslow says instead of encouraging flexibility, it bred burnout and unfairness. Now, he's capping vacations because the 'bad ones' were taking too much time off. On paper, unlimited PTO sounds like the holy grail of benefits a company can offer its employees—the ability to take endless vacations and avoid burnout. But for the $11 billion fintech startup Bolt, (not to be confused with the Uber rival, also called Bolt), unlimited PTO has been a double-edged sword that has caused more problems than solutions. 'We just killed unlimited PTO at Bolt,' its founder and CEO, Ryan Breslow has just revealed on LinkedIn. 'It sounds progressive, but it's totally broken. When time off is undefined, the good ones don't take PTO. The bad ones take too much.' While this is contrary to research from financial services firm Empower, which found that employees with unlimited PTO take on average 16 days off versus 14 days for those with limited policies, Breslow said much of that time was taken off by 'b performers'—leaving high performers to pick up the slack. 'This leads to A-performer burnout. B-performer luxuries. And feelings of unfairness across the board,' the millennial boss explained. 'So we're flipping the script: no more confusion. Every Bolter now gets four weeks of paid vacation (yes, the traditional corporate standard), with the opportunity to accrue more with tenure. Not optional,' Breslow added. 'We mandate everyone take all four weeks off.' Now, the company is capping annual leave at around four weeks—but Bolt workers can accrue a maximum of 25 days leave with tenure. 'We believe a team executing at the pace and scale we do deserves real, protected time off, not vague promises,' a Bolt spokesperson echoed in a statement to Fortune. 'When we saw in our own data that our A-players weren't taking enough time away, we knew we had to fix it.' Breslow rejoined Bolt this year after a rocky few months that included rounds of layoffs and a failed fundraising attempt that carried a $14 billion valuation. It was last valued at $11 billion in 2022, with investment coming from top firms like BlackRock. Reshaping Bolt's culture has been a centrepiece of the 31-year-old's changes since retaking the helm in March. On top of the PTO change, Breslow also publicly announced the company was doing away with its HR department in favor of 'people ops'—which is more focused on efficiency over fluff, he wrote on LinkedIn. 'HR is the wrong energy, format, and approach,' he said. 'People ops empowers managers, streamlines decision making, and keeps the company moving at lightning speed.' The company also had some wins in recent weeks, including securing partnerships with Klarna and Palantir, but the only way to make sure that continues to happen, Breslow said, is to ensure top talent can thrive. '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,' Breslow said. 'Execution requires clarity. That applies to PTO, too.' Despite growing calls from workers for better work-life balance and indications that unlimited PTO could lead to outperforming the S&P 500, the policy remains embraced by just 7% of employers, according to SHRM. Netflix is considered to be an early pioneer of the policy. Reed Hastings, the billionaire cofounder of the streaming service, has said he takes six weeks of vacation each year—and encourages his employees to do the same. 'I take a lot of vacation and I'm hoping that certainly sets an example,' the former Netflix CEO said in 2015. 'It is helpful. You often do your best thinking when you're off hiking in some mountain or something. You get a different perspective on things.' Today, the company claims to not have a strict 9-to-5 workday–or even holiday schedule—and encourages workers to take time off to observe what's important and when their mind and body need a break. More than a quarter of workers, or 26%, say they would consider a lower-paying job if it offered the unlimited option. At the same time, shifting to the policy has sometimes backfired. In 2014, Tribune Publishing—the company behind the Chicago Tribune and formerly the Los Angeles Times—attempted to transition from limited to unlimited PTO, but faced backlash from its employees. Less than two weeks later, the publisher reversed course after receiving 'valuable input from employees,' citing that the new policy actually just 'created confusion and concern within the company.' This story was originally featured on
Fast Company
4 days ago
- Business
- Fast Company
Companies need leaders. Here's how to stand out
Companies are struggling with the rise of AI, high levels of employee burnout, and managing hybrid teams. Now, there's a new challenge: no one wants to be a leader. According to DDI's 2025 HR Insights report, based on a survey of 2,185 HR professionals and 10,796 leaders, 75% of companies prioritize promoting employees to leadership roles from within. However, less than 20% of Chief Human Resource Officers say they actually have employees who are ready to fill critical leadership roles. On average, there are only enough internal candidates to fill less than half (49%) of open leadership positions. Going forward, it looks like the leadership vacuum is likely to get worse. According to the report, Gen Z is 1.4 times more likely than other generations to reject a leadership role. At the same time, Gen Z is also 2.8 times more likely to quit a job because of subpar leadership. However, as Fast Company contributor Tracey Brower points out, the dearth of qualified candidates creates an opportunity for anyone who wants to be a leader. What can companies do to create more leaders? Historically, leadership roles have been desirable but as navigating the business landscape becomes more complicated, leadership roles have become less attractive. 'Leadership is becoming a tougher job every day,' said Tacy M. Byham, Ph.D., CEO of DDI, in a press release. 'While organizations can't control the deluge of external challenges they face this year, strategic HR executives can build resilience by using trusted people analytics to forecast needs, build their bench, and reinvigorate the next generation of leaders.' Essentially, companies need to create a strong leadership pipeline. Promotions are six times more likely when employees receive adequate coaching from managers. Likewise, companies should always be thinking about their strongest employees' potential, even before leadership positions become available. Tara Rasmussen, a hiring manager for Hapi, a hospitality tech company, points out that employee expectations have evolved. While she says older professionals cling to habits like 'micromanagement' and 'habits of overworking,' young employees are pushing back—even those who want to be leaders are setting firm boundaries around their personal time. 'Elder millennials and Gen Z employees are more inclined to say 'No thanks' to giving up personal time even with decent salary increases,' she explains. In the past while future leaders stood out by working long hours, today selection committees need to understand that even leaders want time off. What can employees looking for leadership roles do to stand out? Cultivate soft skills Strong leadership is built on a solid foundation of soft skills. Rasmussen, notes that when it comes to new leadership, 'soft skills,' like communication and interpersonal skills, are more important than ever before. She notes that soft skills are the ability to navigate nuance while communicating with others and doing work. It's not a one way lane,' Rasmussen explains. 'Leaders in the current climate cannot expect to step into a role and communicate one way to all team members and be successful because everyone is different.' Humility Given the current environment where leaders face all kinds of challenges from technological changes to a turbulent economy, Rasmussen also points out 'humility' is a key attribute modern leaders must have. 'The ability to say, 'I don't know but I'll find out,' is absolutely critical,' she explains. 'Leaders we look for now are not just 'bosses' that micromanage and order employees around. They must be able to be, well, human. Admit when wrong and grow alongside their teams.' Embracing AI and adaptability Jeffrey Pole, CEO and cofounder of Warden AI, tells Fast Company that, in 2025, leaders have to be innovative, adaptable, and knowledgeable about how to work alongside AI. 'There is much fear in the workforce today, with economic uncertainty, technology disruption, and a constant need for new skills and new career paths,' Pole explains. 'The best leaders of this generation will be the ones who can adapt to change, embrace new opportunities, and motivate people to explore and experiment with the technologies and markets that are opening up.'
