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Should Your Company Offer Unlimited Vacation?

Posted on 08/19/14 in Great Job
Companies offering employees unlimited vacation time might sound crazy, but it may also be highly productive! A small but growing number of organizations are allowing staff members to take as much paid time off as they need, believing that the benefits outweigh the risks. But does unlimited time-off really work?

Pros of Unlimited Vacation Time

unlimited-vacation-companiesThose arguing in favor of unlimited vacation time are in favor of the trend primarily because it boosts employee morale, but also because it says much about unique corporate culture. For example, unlimited vacation time can be an excellent recruiting tool for American companies, demonstrating an emphasis on employee empowerment and trust.

Advantages of unlimited vacations and time-off include:

  • Boosting employee productivity. According to research, the more an employee works, the less productive he or she will become - so an unlimited vacation policy allows employees to recharge when they need it. Further, unlimited break time places emphasis on employees to work harder and more focused when they are in the office.
  • Employees feel trusted. Because employees can take as much time off as much as they choose, there is a rather large degree of trust built into the equation, which employees not only appreciate, they reciprocate.
  • Time "off" doesn't have to mean vacation. For employees who have a close friend or family member battling a life-threatening illness or requiring assistance with the birth of a newborn, unlimited time away from work allows them to spend time as needed, without concern about using up precious vacation time, that's truly needed for recharge. If an employee is sick, taking needed time off to recover results in improved health, which contributes to a healthier office environment too.

Cons of unlimited vacations and time-off:

Opponents of unlimited vacation time believe it's not the best way to improve employee relations. Those opposed to the idea believe:

  • It's hard to make an unlimited vacation policy fair. When all employees are allowed to take time off, it's up to managers to make sure essential personnel don't take off at the same time. This can become an unwieldy process. When implementing an unlimited vacation policy, managers need to be well-prepared to enforce these rules - and must include some sort of caveat to keep business deliverables running on schedule.
  • Unlimited vacation doesn't work for most companies. Unlimited vacation is most popularly used among small companies desiring tangible results. Big-box stores with employees paid hourly, sales organizations, manufacturing companies, and others with a large number of employees would have a much more difficult time implementing such a system.

Other Ways to Keep Employees Happy - and Productive

promotional-bluetooth-speakerThere are other ways to motivate employees. Providing promotional products as prizes - such as travel mugs, Bluetooth speakers, golf equipment and awards - is a smart way to incentivize staff. Non-cash awards for such honors as "Employee of the Month" can be accompanied by digital downloads, preferred parking spaces and desktop signage, allowing recipients to show pride. The choices are endless - so consider promotional products for reward and incent. Need some trending suggestions?

Contact us - we know what's far from boring - and best of all, we know what works!

Author: Robert Stillman CEO

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