An unlimited vacation policy might be on your company’s list of potential benefits to consider this year. According to the Society for Human Resource Management, 4% of organizations are now offering unlimited time off. That number may continue to rise, as startups and large organizations alike begin experimenting with the trend. For HR managers, the key question is whether an unlimited vacation policy is right for your business. Here’s a closer look at some of the pros and cons from an employee and company perspective – and some critical factors to keep in mind.
An unlimited vacation policy can streamline administration for both companies and their employees. Companies and HR departments aren’t left trying to track days and ensure that employees aren’t abusing policies. For example, are your employees using sick time to take care of personal errands? At the same time, employees aren’t limited by a specific number of days to take a vacation. Simplified administration may help free your staff to focus on other valuable activities.