America has long held the title for having one of the most hardworking workforces in the world. Compared with other countries, the amount of vacation time that is mandated by federal and state law is negligible. However, an increasing number of employers have begun to revamp their benefits plans, hoping that the changes will help make their employees even more productive. A new policy change that these employers are implementing is unlimited vacation time.
Employers who provide unlimited vacation policies believe that they are giving their employees with more flexibility, which will enable them to be more productive at work while effectively managing their home lives. These policies also enable employers to create a work environment where they can trust and reward their employees for completing their duties accurately and efficiently.
Despite an increase in larger employers implementing unlimited vacation policies, roughly 1% have maintained such practices. Although the possibility of taking as much time as possible for vacation initially entices employees, many workers end up struggling with determining the amount of time off they should actually take. Furthermore, employers could face potential backlash from employees who feel that they are losing one of the benefits they have earned by staying with the employer longer than other employees.
As with any progressive policy, employers need to take into account many factors before deciding whether or not to implement new workplace practices. The size of the workforce, the type of work being performed, and the work environment that an employer wishes to promote are only some components that employers should review when considering unlimited vacation policies.
Pros
One of the largest, and most obvious, pros of having an unlimited vacation policy comes from the employees’ point of view: they are able to take advantage of practically any travel opportunities or additional time to spend with family and friends. This provides employees with flexibility for their personal lives; however, they must still submit their vacation requests for approval in order to avoid scheduling conflicts. For employers, offering employees such a generous benefit can bring in more prospective employees with a range of talents, as well as help employers retain some of their top performing employees.
Another upside to having an unlimited vacation policy is the image it provides the employer. Employers who enable their employees to take generous amounts of vacation time demonstrate that the employers care about their staff; they trust that their employees will remain on top of their work responsibilities; and they treat their employees as individuals, since each person may require different amounts of vacation time based on his or her respective circumstances.
Unlimited vacation time can help employees establish more of a work-life balance, so that they can go to work feeling refreshed and ready to take on the day’s assignments.
Cons
Giving employees the option to take an unlimited amount of vacation days lends itself to the possibility of abuse. Not all employees have the same work ethic, and therefore, may feel more comfortable taking off substantially more time than their colleagues. Although the possibility of employees taking advantage of unlimited vacation is a legitimate concern for employers, many employers that have already implemented these practices have found that, in general, their workers use about the same amount of vacation days as they did while on set plans.
On the other end of the spectrum, and more commonly seen in workplaces with unlimited vacation policies, employees are often confused by the lack of structure and struggle with the amount of freedom involved in the amount of vacation time they have. Employees may feel uncomfortable taking any vacation time because they are concerned about falling behind in their work or otherwise being seen as a “slacker.” Even when employers provide a set amount of vacation time, research has shown that employees generally do not use all of the time they are given.
Employers should also be cautious of backlash from their current employees if they decide to switch from a set amount of vacation time to unlimited. Many employers’ vacation policies provide benefits to employees who have worked for the employer for years, adding on additional hours or days to an individual’s allotted time off depending on the length of service. Now, with an unlimited plan, senior employees lose out on a major benefit of staying with the employer.
Policy Considerations
Before implementing an unlimited vacation practice, employers should consider whether their business or organization can manage having multiple employees taking extended time off. For smaller employers, unlimited vacation may not be feasible simply because there would be no one else around to cover for the absent employee. In order to combat scheduling conflicts, employers must continue to require employees to submit requests for time off, and obtain approval, in advance. Although the employee will not be denied because they cannot take any more time off, they may still not receive approval for the vacation if too many other employees are also taking off at that time.
Because the amount of time off an employee can take would be unlimited, employers must make it clear that unused vacation time will not be “paid out” when the employee leaves the employer. Additionally, if the employer wishes to ensure that his or her employees actually take time off to relax and enjoy time outside of work, he or she might consider setting a minimum amount of time off that employees must use.
Implementing a successful unlimited vacation policy greatly depends on the work environment and culture. Where employees are given clear work goals with the expectation that they will fulfill their responsibilities, unlimited vacation plans can and do work. However, in order for these policies to be successful, employers must be sure to set clear parameters for vacation time.