QOTD: Save money by not paying out when they leave.

TLDR:

Key Points:

• Partners at KPMG admitted to making policy changes to avoid paying out employees when they leave.
• EY also switched to unlimited PTO to save $36 million yearly on unused vacation payouts.

“Now We Don’t Have to Pay People Out When They Leave Which Is Just Good Business”

Recently, partners at KPMG made it clear that policy changes were made to avoid paying departing employees. The move to unlimited PTO at both KPMG and EY was aimed at saving sizable amounts annually on unused vacation payouts.

The leaked EY email revealed cost-saving strategies and emphasized the elimination of entitlement mentality among employees. Partners at KPMG openly admitted to implementing changes to avoid payouts upon employee departure.

These revelations shed light on the financial motivations behind corporate policy changes and the impact they have on employee benefits. The culture of trust, flexibility, and well-being was used to justify these decisions, although the cost-saving aspect was the primary driver.