How a Project-Based Design Firm Turned Excess PTO Into $1.6 Million of Flexible Value.

Project-based work creates a unique PTO problem: employees can't always predict when they'll have downtime to actually use their earned time off, which means PTO tends to pile up and cause headaches for everyone come year-end. One design services firm decided to solve that problem by giving employees a way to convert excess PTO into value throughout the year, instead of racing to use it before it expired.

The Challenge

This organization was moving from a defined contribution benefits program to a more typical benefit election model, and wanted a PTO conversion program that preserved flexibility for employees through the transition. Specifically, leadership was looking for a solution that would let employees set up recurring exchanges throughout the year, rather than a one-time annual event.

Project-based work made it difficult for employees to use all of their PTO within a given year, which led to a logjam of PTO requests toward year-end. In a competitive talent market where retention depends on standing out, leadership also wanted a Total Rewards offering that would genuinely differentiate the organization from its competitors.
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The Solution

This organization implemented PTO Exchange with both pre-tax and post-tax options to support broader financial wellness goals. Employees gained the ability to exchange excess PTO for retirement or HSA contributions, discounted travel purchases, or direct cash payments.

A key part of the rollout was recurring exchanges, refined functionality that let employees set up predetermined, ongoing exchanges to meet their needs automatically, rather than manually requesting each one. The program was also designed with minimal friction: there's no required minimum balance to exchange, and employees can exchange up to 60 hours per calendar year.

The Impact

Since December 2023, employees at this organization have exchanged:

•    $1.6+ million in PTO value
•    24,800+ PTO hours
•    Ave. 3.4 exchanges per user

More than 25% of employee transactions are directed toward 401(k) and HSA plans on a pre-tax basis, showing that even with a fairly modest annual cap, employees are choosing to use the benefit for long-term financial goals rather than only short-term cash needs.

In Their Words

"I was about to hit my PTO max and instead of losing the ability to accrue more time, I am grateful for the flexibility to convert my PTO for some extra cash! What a great benefit." EMPLOYEE

Why It Works for Nonprofits

This organization's story shows how PTO Exchange can solve a problem that's easy to overlook: when work is unpredictable, "use it or lose it" PTO policies don't actually work for anyone. By giving employees a flexible, recurring way to convert excess time into value year-round, this organization turned a logistical headache into a genuine retention advantage.

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