Unlimited vacation seems like an enticing workplace benefit, but can it also boost productivity? Yes, new research from staffing firm The Creative Group suggests. Nearly four in 10 (39 percent) advertising and marketing executives interviewed believe office output would increase if employees could take time off whenever they wanted, as long as their performance didn’t suffer.
But while more companies may be offering liberal vacation policies in an attempt to attract and retain talent, it seems many professionals are hesitant to take advantage of the perk: A majority of executives (72 percent) and workers (56 percent) said the amount of vacation they would take would remain the same if there were no limit to their personal holidays.
“The idea of unlimited vacation time can be attractive and help staff feel more in control of their schedules. But, in reality, many employees have trouble breaking away from the office no matter what the official policy as deadlines need to be met,” said Diane Domeyer, executive director of The Creative Group. “Managers should lead by example, taking time off themselves and encouraging their staff to do the same. Hiring freelancers is one way to alleviate pressure on employees and ensure projects stay on track.”
Advertising and marketing executives and workers were asked, “If an unlimited vacation policy* were instituted at your company, what impact do you think it would have on staff productivity?”
Their responses:
| Executives | Workers | |
| Increase significantly | 15% | 18% |
| Increase somewhat | 24% | 21% |
| No change | 43% | 27% |
| Decrease somewhat | 8% | 15% |
| Decrease significantly | 9% | 16% |
| Don’t know/no answer | 0% | 4% |
| 99%** | 101%** |
Executives and workers were also asked, “If your company instituted an unlimited vacation policy, do you think you would take … ?” Their responses:
| Executives | Workers | |
| More time off | 24% | 38% |
| Less time off | 4% | 3% |
| Same amount of time off | 72% | 56% |
| Company already allows unlimited vacation time | 0% | 1% |
| Don’t know/no answer | 0% | 3% |
| 100% | 101%** |
Unlimited Vacation and your Workplace
Ester Frey, vice president of Technology Staffing Services at Robert Half Technology and The Creative Group says managers can maintain workplace productivity by asking employees to make time-off requests as far in advance as possible. This can help ensure there is adequate coverage during peak vacation season.
“As part of their pre-vacation prep, managers should have staff outline what they’re working on, any upcoming deadlines they’re responsible for, and what duties others will have to fill in for while they’re away,” says Frey. “Then managers can divide the work of vacationing staff among the remaining team members.”
Frey continued: “If several employees are taking time off simultaneously, or if a single worker’s absence will throw off a team’s workflow, managers can bring in freelancers to ensure tasks get done and deadlines are met.”
Frey discussed the benefits and drawbacks of unlimited vacation policies:
Benefits of unlimited vacation
- It helps prevent burnout.Encouraging employees to take time off as needed – whether it’s to enjoy a long weekend or a two-week vacation – can help prevent burnout.
- It helps build trust.An unlimited vacation policy relies on employees to take time off within reason, which extends a certain degree of trust between them and their employer.
- It can be used as a recruiting tool.Professionals increasingly seek work-life balance and an unlimited vacation policy can be an effective way to attract talent.
Potential drawbacks of unlimited vacation
- It can be hard to implement fairly.A big challenge is ensuring that all employees are given equal opportunity to take time off. Since everyone can’t be out at the same time, managers must be able to juggle a vacation schedule that is fair to all and effective for the business.
- Employees might take less vacation.Some employees may find it’s simply too hard to figure out when and for how long to take time off. Others may worry they’ll be seen as a slacker if they take time off.”
Affects of unlimited vacation on recruiting
“While an unlimited vacation policy can be a draw for candidates, employers must remember it’s only one piece of the puzzle,” says Frey. “Savvy job candidates will evaluate an entire job offer, including the salary, benefits, professional growth opportunities and workplace culture.”
It Comes Down to Culture
There are success stories such as how Netflix successfully implemented an unlimited vacation policy. And there are failures, such as how this U.K. Company Offered Its Employees Unlimited Vacation Time. It Was a Total Failure.
According to a Society of Human Resources Management article titled: The Limits of Unlimited Vacation, the key to getting an unlimited vacation policy to work is to create the right culture. Setting a standard of mutual trust, where both worker and employer trust each other not to abuse the system, is the key.
In that SHRM article, one executive offered her opinion on how it works for their employees and managers. “You need to be respectful of your co-workers and your clients and get them what they need,” says Mary Beth Wynn, vice president of people at Jellyvision, a Chicago-based multimedia production company with 180 employees that offers unlimited vacation. “Beyond that, we leave it up to you to let us know what you need to be healthy and happy. And we leave it to the manager to address the reasonableness. It’s a system that requires trust on both sides. We trust our employees not to abuse it, and employees have to trust us that the flexibility is really going to be there.”
According to SHRM’s 2013 Vacation Impact on the Workplace Survey Report, people have limited attention and that job performance is improved by both short and long breaks. In that survey, more than 90 percent of HR professionals believe that vacation improves wellness, morale, performance and productivity.
“All professionals can benefit from taking periodic breaks from work,” says Domeyer. “A vacation — no matter how short or long – is essential for recharging and bringing a fresh approach to business projects and challenges.”
Can managers manage and can businesses operate with a staff working on an unlimited vacation schedule? The jury is still out – and differs from company to company.
