Some companies, both here and abroad, are experimenting with unlimited vacation, or “discretionary time off” as it is known in HR circles. And we’re talking about paid time off, not unpaid leaves of absence. Sounds crazy, doesn’t it? What’s to prevent someone from heading for the beach and never coming back? How are we supposed to get anything done if our people are coming and going whenever they feel like it? Clearly, these are legitimate concerns. To learn how the early adapters of this unusual perk are trying to address those concerns, please continue reading below.
Unlimited paid vacation? Are you kiddin’ me?
First, “unlimited paid vacation” is really a misnomer . . . there are limits, but those limits are not expressed in days or hours. That is, you are still expected to carry out your job responsibilities, on time, and within acceptable levels of performance. So the limiting factors are really defined, not by the calendar, but by the demands of your job. You can take as much time off as you want, whenever you want to, provided your job responsibilities do not suffer. For that reason, “discretionary time off” is really the more accurate, descriptive term for what we’re talking about here.
Second, unlimited paid vacation isn’t a perk that works for all individuals in all companies in all industries or in all cultures. It works best for individuals who, thanks to cell phones, laptops, and the internet, can work from just about anywhere . . . from home, from a coffee shop, or even from the stands of their kid’s soccer game. Conversely, it’s tough to make sense out of a “discretionary time off” policy if your work force must conduct its work exclusively within the confines of your facility, as in manufacturing, for instance.
Americans take less time off than most other industrialized countries. In fact, many of us fail to take the time off each year that we’re entitled to take. Why? In part, it’s due to job security . . . people are afraid to take the time off out of fear that their job won’t be there when they come back. It’s also due to a notion (usually misplaced) that nobody can do my job like I can, and I don’t want somebody else getting it all screwed up.
So if our employees aren’t using the time off they’ve already got, what’s the point in making it possible for them to take more?
Discretionary time off . . .
- makes us focus on what’s important . . . what people accomplish, not just how many hours they were “on the clock.” If somebody is getting the results you want, why worry about how many hours they take to do it?
- recognizes that people have interests outside of work and that they want flexibility to pursue those interests.
- is a highly visible demonstration of trust. It’s saying to your employees, “We trust you to manage your time responsibly . . . to make smart decisions about when you need to be working and when you don’t.” Even if your employees don’t take more time off than they did before (and some preliminary analysis says they won’t), the demonstration of trust alone strengthens the bond between a company and its workforce.
- gives each employee the ability to manage his or her own “work-life balance.” Company owners have long cherished their ability to come and go as they please, to take an afternoon off here and there to play a round of golf, or to participate in their kids’ after school activities. In fact, many owners will cite “personal freedom” as the driving force that made them start their own business in the first place. But now, Millenials are teaching us that everybody, not just bosses, want that level of freedom too.
- can be a powerful retention and recruiting tool. Because it’s a relatively new idea and not many companies offer it, it would differentiate you in a crowded hunt for the best talent.
As noted earlier, “discretionary time off” is a concept that may be very difficult (if not impossible) to implement in some situations, and it could be fraught with all sorts of unintended consequences. So if you’re interested in exploring it, you should study it carefully, get all the help you can from others who already have experience with it, and try to learn where the potholes are before you hit them.
If you want to learn a bit more of the basics, use the link below to take you to a Money magazine article on the subject.
