Unlimited Vacation Days Policy
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When we started working on Vacation Tracker, we wanted to find out as much as we can about various types of vacation (logical, right?). During our research, one type caught our attention. We’re talking about the unlimited vacation days policy or unlimited PTO.
The moment we heard about it, we wanted to know more. What is the unlimited vacation days policy? What are the pros and cons? To be honest, we were quite confused. It was something we wanted to incorporate into our product, however, we need additional information. Once this was clear – we were amazed by the concept.
Not long after, we heard about Netlifx and their vacation policy. We were surprised to discover they had the unlimited vacation days policy since 2004. How didn’t we know about this sooner, and why is this trend becoming more and more popular? We had to learn more. And we did.
What is the unlimited vacation days policy?
It may sound confusing at first, but when you get to the bottom of it, it makes perfect sense.
The unlimited vacation days policy, otherwise known as unlimited PTO (paid time off) allows employees to take off as many days as they want. They can be used for vacations, or during illnesses. This is a rare approach to vacation days, but it is becoming more and more popular.
Why do companies offer Unlimited PTO?
This is an entirely reasonable question any employer might have.
Why? Why would someone give unlimited vacation days? Well, believe it or not, the unlimited vacation days policy has many benefits.
By offering your employees an unlimited vacation days policy, you’re showing them how much you trust them. And that you care about them.
Research from Glassdoor has shown that 80% of employees prefer getting various benefits, such as more days off during the year than getting a raise. Sounds weird, we know. But we completely understand it.
What are the benefits?
As an employer, you’re faced with two challenges. You want your company to succeed, and you want your employees to be satisfied.
By offering an unlimited vacation days policy, you can have both. Your employees will be happy knowing you care about them and that you understand that there are various events that cannot be scheduled in advance. They will know that you care about their personal life and that you want them to have a work-life balance.
Another great thing is that this policy conveys trust. However, this is not a one-way street. To even think about this policy, you need to trust your employees and be sure they will finish their tasks on time. Your employees will be satisfied knowing that you trust them, and are letting them organize their responsibilities.
Another great thing is that you will attract and retain top talent. By offering an unlimited vacation days policy your company’s reputation will grow stronger. This means many talented employees will head your way.
Are there any cons?
As with everything we do, there are pros and cons. When it comes to the unlimited vacation days policy it’s all about trust.
A considerable con could be the fact that some employees may take advantage of this opportunity, and harm the company’s productivity. That’s why it is important to think about this policy and make sure your company is ready for it.
Another thing that is important to note is that you will lose vacation days as a reward. If this was something you were offering to your employees for overtime, or simply to say thanks for their hard work, you’ll have to come up with something else.
Not every company is the right fit for the unlimited vacation days policy, so it’s essential you give it a good thought, and if you think you can do it, put it to a test. Offer unlimited vacation days for a year, and see how everything goes.
Various companies have stated that even though they’ve offered unlimited vacation days, their employees didn’t take more days off than they would usually take. However, all of this varies, and you never know how it will work for your company.
All in all, it’s a great policy that can positively affect your company’s reputation in every way, but how you manage it is of the essence.
Another important thing to note is that research has proven that by using the unlimited vacation days policy, companies have saved 52 hours of HR work per year. Amazing results, right?
However, with Vacation Tracker, you can get this number even higher. We offer the unlimited vacation days policy feature, so tracking days off becomes even easier. Take it for a FREE spin today, and your vacation can already begin.