John Jonas explains his approach to unlimited PTO and flexible hours: he prioritizes actual productivity and completion of work over visible hours spent. He prefers employees stay busy to avoid turnover, but is fine with flexible scheduling (e.g., working five hours one day and extra another) as long as the work is completed and he receives good value.
Chapters
How do I get maximum productivity from my OFS if they can take whatever time off they want? So for me, I personally value productivity more than the amount of time it looks like you spent working. So if you can finish your work within an eight hour shift, that's great. If you can finish your work in five hours, that's great. I want to keep people busy because if you don't keep people busy they'll go looking for other jobs and then usually their productivity suffers. But if their productivity doesn't suffer and we can make their lives better and they're still getting the work done and I feel like I'm getting good value out of it, well that's pretty good for me. And so if they want to take time off and get their work done outside of that they want to work extra one day and work less another day, I don't really care as long as the work gets done.