A great vacation policy is a wonderful perk that can help attract and retain the best talent for your company. In recent years, as companies have looked for ways to compete for top talent, some have opted to move to an unlimited or discretionary vacation policy. This type of open-ended time off policy can work if you foster an environment of trust, openness and respect. When employees are offered unlimited vacation, they feel empowered and valued as the company demonstrates they believe in the employees’ talent and trust them to make responsible decisions about their time.
Benefits of an Unlimited Vacation Policy
- Empowers employees to take advantage of more flexibility to manage their work/life responsibilities.
- Trusting your employees to properly manage their time can help to build morale and loyalty.
- Allows small to mid-size companies to compete with larger firms.
- Fosters trust in and out of the workplace.
Potential Concerns with an Unlimited Vacation Policy
- Managers need to pay attention to their employees’ time off as some may be less inclined to take vacation when they do not have a specific amount of days allocated.
- An unlimited vacation policy has a risk of abuse, so it is important to track vacation time and hold employees accountable.
- Scheduling conflicts can arise as departmental coverage for projects falls on managers to ensure vacation time is planned out without affecting goals.
Establishing an Unlimited Policy
Simply putting the policy in place does not guarantee a positive result for the company. Many companies have found that when they offer employees unlimited vacation, they end up taking fewer vacation days. Continuing to track vacation helps create a safeguard to ensure that employees are taking the necessary time off to recharge, and that the policy is not being abused. An unlimited vacation policy, in conjunction with an effective hiring process, can be a huge benefit to a company as employees may feel more motivated to increase engagement and productivity.
Does your company need help standing out from the crowd? Our Talent Management team is here to help you attract and retain the best talent for your company. Contact us today to learn more.