The benefits of unlimited time off
It makes sense that companies have a lot to gain by implementing such a policy when you consider how it impacts employee engagement. Giving workers more autonomy allows for better physical and mental health, closer relationships, increased productivity and new and fresh perspectives. There are other benefits for companies that offer an unlimited time-off policy:
- It can save money. Because companies are no longer obligated to pay employees for a set number of holiday days, there’s no need to pay them for unused days at the end of the year or when an employee leaves the company.
- It’s less of a headache for HR. Given that employees can take paid time off for any reason, HR is not saddled with tracking the purpose of each request for time off. HR only has to make sure that they have a reliable system for managers to approve such requests.
- It’s good for recruitment. Because employees highly value the benefit of unlimited time off, having an unlimited holiday policy is an asset for companies that want to recruit a top-notch workforce. And, since there is only a small percentage of companies that offer such a policy, those that do have a recruitment edge.
- It can increase productivity. When an unlimited time-off policy is implemented well, it should not reduce productivity and may even increase it. In fact, a year after Indeed rolled out its unlimited time-off policy – during which time employee holiday days increased by 20 percent – the company was still able to significantly increase headcount, open new offices and boost monthly visitors to its website.
Convincing employees to take unlimited holiday days
As more employers embrace the idea that productivity doesn’t just come from hard work but from a balance of work and time off from work, they’re looking at not only implementing new policies but also fostering a shift in their company culture – to one that place a high value on employee happiness and engagement. And so, however counter-intuitive it might feel, companies that want to boost employee engagement should encourage workers to take time off. But while convincing employees to work less might seem like an easy task, in reality, many are reluctant to unplug. A recent survey found that 52% of Australians still do work-related tasks while on holiday.
Preventing abuse and keeping up productivity
Offering an unlimited time-off policy is not for every company. It takes resources and commitment to make it work for employees who wish to access it. Employers looking to implement such a policy must evaluate whether they’re ready for such a move. Here are some things that employers thinking about incorporating an unlimited PTO policy should bear in mind:
- The company culture must be employee-focused. The shift from a traditional holiday plan to one that is open and unlimited has to be supported by a culture that is trusting and values employee autonomy. If morale is low, employees are more likely to abuse the system.
- There should be good manager-employee communication. Unlimited holiday doesn’t mean unplanned holiday. Supervisors and HR must have open lines of communication with employees to ensure that holidays are requested with ample lead time. As with a traditional policy, holidays must be appropriately staggered and scheduled so they don’t hamper productivity.
- Encourage employees to take time off. Many employees feel guilty about asking for time away from work. Some can become ‘paralysed’ at the prospect of having so much choice. If employees haven’t taken time off in a while, managers should ask how they are doing and whether a break would be beneficial.
- Lead by example. Senior staff need time off just as much as subordinates and can help to encourage employees to take holidays by doing just that. Once employees see that business still hums along even when managers are out for a while, they’ll be more inclined to do the same.
- Talk about the issue frequently. Executives and managers should educate employees about the company’s holiday policy and its benefits. Managers should help workers understand that the purpose is to support them in maintaining a healthy work-life balance, and that they trust them to decide how much time off is necessary to stay productive while investing in self-care.