You Lose Vacation Time As A Reward
Do you ever use extra time off as a reward for tenure or employee performance? If so, that’s no longer an option with an unlimited time off policy. You’ll have to find new, innovative ways to reward your top performers.
There Are No Clear Expectations
One of the biggest issues with unlimited vacation policies is that there are often no clear expectations as to how much time is appropriate for an employee to take. When time off is defined, it provides clear boundaries as to what an employee can and can’t do. Strip away those boundaries and you risk employees taking way too much or way too little time off.
It Can Be Tougher To Manage
Since HR will no longer be in charge of tracking time off across the organization, it will fall to individual department or employee managers. This could be considered outside of the scope of what managers are expected to do and will be another item on their already full plate.
Unlimited PTO Best Practices
If you are leaning towards implementing an unlimited time off policy, be sure you have a plan in place to maximize the benefits of this unique offering.
Change The Name
Though ‘unlimited’ might sound appealing for recruitment efforts, this can lead to more hassle than it’s actually worth. Consider alternative names, like a ‘flexible’ time off policy or ‘preferred PTO’. Or, take a fun approach, as HubSpot did with their ‘two weeks to infinity’ policy, which also helps set expectations.
Provide Clear Guidelines
Just like a traditional paid time off program, an unlimited vacation policy should still have clear guidelines. Is there a limit on the total amount of consecutive days that an employee can take? Is there a minimum or maximum amount of days that an employee should take in a calendar year? Is there a minimum amount of days’ notice that the team or manager needs to consider and approve time off? These are all questions that need to be considered and communicated when rolling out the new policy.
Model Appropriate Behavior
Employees will often look to their managers or supervisors to set expectations for when and how to use their paid time off. Make sure that your leaders are also taking advantage of the generous new policy and that they are following all policy guidelines to take their time off. Employees might be hesitant to take time off if they don’t ever see their managers take time off, so make sure everyone is comfortable with and able to take days off, whether for a vacation or even just personal time.
Reward Actual Performance
Another roadblock for getting employees to actually take their time off is when a company rewards physical time in the office versus the actual impact of work completed. If your organization encourages long hours via rewards and promotions, it will be hard for employees to justify taking time off. What if they are scared about losing out on a promotion or annual bonus? Be sure that your incentive and reward programs are fair across the board and emphasize the impact an individual has on the organization versus the physical time they spend in the office.
Frame Benefits Around Core Values
Tie your unlimited paid time off policy and guidelines back to your company core values to bring everything full circle. For example, does your company value travel and exploration, or family time with a healthy work/life balance? Do you prioritize autonomy and accountability? These are all core values that can support unlimited vacation time. And, remember to communicate that unlimited vacation isn’t just for vacation; personal days, mental health days and even volunteer days are also important for an employee’s growth and happiness.
Of course, you should always be aware of any federal, state or local laws concerning paid time off and make sure your new policy abides by any requirements to make the switch.