Picture your dream job. Does you it have a high paying salary or perhaps an unlimited vacation? Imagine taking as much vacation as you like, as long as you accomplish all of your work in a timely manner. Unlimited vacation is becoming more and more of a reality for many companies. With the right company, executive team and culture, “unlimited vacation policies” could work to the company’s advantage.
First, there is always an incentive for why companies would offer unlimited vacations. So it is not purely out of altruism. The obvious benefit for companies is that the promise of such flexibility helps them attract and retain more employees, setting them apart from more traditionalized employers.
Second, there is a hidden benefit if an employer acts upon the unlimited vacation policies: a financial upside. When employers stop doing out a set amount of vacation days, they no longer have to pay out unused days if workers quit or get laid off from the company. “And that is a very large financial advantage to the employer,” says Carol Sladek, a partn leads the work-life consulting at Aon Hewitt. “They eliminate the financial liability.”
Where exactly did this idea of unlimited vacation policy started? Silicon valley is where it first became popular. Although unlimited vacation policies are still rare in Corporate America—just 1 to 2 percent offer the benefit according to Society for Human Resource Management. Earlier this year, about 30,000 of General Electric’s more senior U.S. salaried employees became eligible for its permissive time off policy, which doesn’t set a limit on the number of days they can take off.
The Policy itself actually encourages employees to take time off, says Adam Sacks, president of tourism economics for Oxford Economics. “ because effectively, they can’t get the time back if they don’t use it.
Grant Thornton said as the new policy goes into place, it should accomplish multiple goals:
incentivizing people to take for time off and to balance their professional and personal lives, while also reducing the financial liability and providing a tax benefit for the partnership.
While the policy change does benefit the company financially, the real benefit is the long-term ability to attract and retain the best and the brightest talent.
It is very imperative for the well being of people to have a work-life balance in their lives. Many are simply too invested with their occupation that they often neglect their responsibility as a parent, a friend or even to themselves. This policy not only benefits the company financially, but it also benefits the employee. You see, it is a win-win for organizations.