By Dr. Marie Gould Harper
Program Director, Management, at American Public University
Unlimited vacation time is an innovative idea from companies that think outside the box. Companies that encourage innovation are the ones who are willing to try new designs, models and policies to attract and retain the best employees. They are going to be the ones to survive beyond the 21st century.
Although some firms still consider themselves in control, their visions cannot be realized without a qualified, dedicated workforce that believes that their purpose leads to the success of the organization.
Note that I said “dedicated,” not “loyal.” In my mind, the two personal qualities are distinct. By definition, loyalty implies an allegiance that is binding, whereas dedication focuses on a commitment to a purpose.
Which type of employee do you want to see work for your company? If your response was dedication, why not consider shaping policies and practices on areas that may attract individuals with this type of profile?
Choose Dedication over Loyalty in Employment Candidates
I have interviewed diverse groups of candidates for a variety of positions in various organizations. One of the characteristics that I look for in candidates is dedication.
While I ask technical questions, I am also evaluating them. I determine (1) where is their heart, (2) is their head “in the game,” and (3) what motivates their passion to come out?
An interview is an opportunity for candidates to tell their stories. As they do, you begin to see what motivates them.
For years, many employers and others subscribed to the notion that money was workers’ primary motivator. However, that concept has been challenged as the “work-life balance” concept became popular.
Organizations have implemented policies and benefit perks that encourage employees to look at their whole (personal and work) lives. These employees take advantage of opportunities that will allow them to reduce stress and maintain balance through a normal work schedule.
Overachievers Often Risk Their Health for Corporate Results
Dedicated workers tend to be overachievers wanting to see the final result, sometimes at the risk of their well-being. A 2014 Glassdoor survey found that the average employee takes only half of her/his allotted vacation time per year and tends to work during a portion of that time off. At this point, there is an opportunity for organizations to implement policies that will assist these types of employees to take some downtime without guilt.
Unlimited Vacation Time: Stress Reducer or a Productivity Inhibitor?
Some companies have attempted to offer an innovative benefit perk: unlimited vacation time. However, there is some debate in HR circles about whether this type of policy is effective.
Advocates believe it will assist employees in reducing their stress and maintaining a balance in their lives. Opponents believe employees will abuse the flexibility of vacation days, which could lead to a reduction in company productivity.
Can Your Company Culture Support Unlimited Vacation Days?
It’s not always about policy. A policy is nothing more than a proposed approach intended to guide a person’s behavior. Individual and group behaviors create an organization’s culture.
You need to determine if your culture can support a policy that relies on trusting your employees to do the right thing. In doing so, you have to factor in the type of organizational culture that the company desires.
Some organizations and individuals require structure, hierarchy and guidance. Therefore, an unlimited vacation policy might cause conflict and not be a good fit.
In a March 2016 Forbes article, Jonathan Chew notes that only about 1% of U.S. companies have an unlimited vacation policy, including LinkedIn, Netflix, GE, Grant Thornton and VMware.
This policy may not be your cup of tea, but the concept has worked for those companies and others. Also, there could be surprising results.
Unlimited Vacation Time Policy Can Promote Employee Trust
For example, MammothHR, a small human resources technology company in Portland, Oregon, decided to give unlimited vacations a try. This organization implemented the policy because it wanted to promote a sense of trust among its employees and show that it cared about their lives after work.
A year after the policy’s implementation, Mammoth employees rated this benefit among the top three perks behind healthcare and 401 plans. Mammoth also found that, in the course of a year, employees took the same amount of vacation time as they did when a traditional vacation system was in place.
Although there was no increase in time off, MammothHR employees liked knowing the policy was there. That’s what made it a popular perk.
What Can Be Learned from the MammothHR Experience?
There are valuable insights to be learned from the MammothHR experience:
Walk what you talk. Life happens. An employee can experience unscheduled events. By offering this type of policy, employers communicate that they trusts their employees to manage their time wisely. Employees have the freedom to manage personal concerns while they get their work done.
Trust goes a long way. The company found employees ensured their deadlines were met when taking necessary time off. There was no need to have a manager or HR monitor the situation.
One size doesn’t fit all. Having standard policies with a set number of days does not work for everyone. Work styles and personal events are different for each person. Offering an unlimited vacation policy is equivalent to implementing a cafeteria benefits plan with options. Pay the employee for getting the job done rather than by the hours they clock.
The debate should not be whether or not an unlimited vacation time policy is a feasible one. Instead, the decision should rest on the type of culture the organization has built and whether mutual trust has been built between employees and employers.
About the Author
Dr. Marie Gould Harper is the Program Director of Management at American Public University. She holds an undergraduate degree in psychology from Wellesley College, a master’s degree in instructional systems from Pennsylvania State University and a doctorate in business from Capella University. She is a progressive coach, facilitator, writer, strategist and human resources/organizational development professional with more than 30 years of leadership, project management and administrative experience. Dr. Gould Harper has worked in both corporate and academic environments.
Dr. Gould Harper is an innovative thinker and strong leader, manifesting people skills, a methodical approach to problems, organizational vision, and an ability to inspire followers. She is committed to continuous improvement in organizational effectiveness and human capital development, customer service and the development of future leaders.
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