Why do you offer PTO? Functionally, PTO allows for intentional or emergency time off while maintaining consistent wages. But do you offer it because it is expected, or because you acknowledge it's actually GOOD for employees to periodically unplug from the "daily grind?" The true value of providing PTO is that there are quantifiable benefits of taking time off, no matter what your position in the company. Simply put: the more care you show for the well-being of your team, the better they are likely to represent the brand, even when they are on their time off!  

How much PTO do you offer? Your business has operational needs, and just like the various costs of doing business, you need to budget for time off among your team. This normally results in a slow accrual of PTO with increasing amounts based on tenure (1 week after 1 year, 2 weeks after 3 years, etc.). This is effectively the amount of time you are budgeting for them to be away from the job. 

When can PTO be taken? During slower seasons, you can better afford having more people away from work at the same time. During the busier season(s), you need to minimize risk to operations. Rather than cutting off ALL vacations, I suggest shifting from "only one person off per department at a time" to "only one employee off at a time across the company." Obviously, these numbers will vary based on your company size and operational capacity.  

What happens when people want to take unpaid time off? Unpaid time off might be requested when PTO has been exhausted, and you can decide what you choose to approve. But when an employee asks for unpaid time off while they still have PTO hours available, it is normally to "bank" the paid time for a later hypothetical date with the idea that if you have PTO available on the books, you'll get approved to use it. This concept is traditionally true, because most employers believe the same myth that having PTO in writing means you get to take off the time you want. HOWEVER, scheduled time off approval is ALWAYS AT MANAGEMENT’S DISCRETION. PTO on the books does not guarantee a particular day off, so it doesn't make sense to take off days without pay and hold the PTO under the impression that they'll get MORE time off that way. (That said, if you ever deny someone’s PTO request you should provide a good reason, to avoid turning the employee toxic.)

What happens if management denies a time off request and the employee calls out sick? Hold them accountable. The coincidence of getting ill at the exact time they wanted scheduled time off should always require investigation and disciplinary action if/when fraud is detected. If the employee cannot trust or acknowledge the business needs that denied their time off request, and are willing to lie about why they go anyway, how can you trust them to represent the brand when nobody is watching? This is another reminder to provide a clear reason for any denial of PTO so any dedicated employee can understand why the business truly needs them at work. 

Keep in mind this is advice, not dictate. Opinions can certainly vary, and ultimately it is your choice how to proceed with PTO, unpaid time off, or any other type of leave (within the bounds of federal and state regulations). Whatever you decide, make sure the expectations are CLEAR in your Employee Handbook, INTENTIONAL communication is used to manage the PTO process, and employees are held ACCOUNTABLE when they try to "game" the system.