For most employers, the prospect of providing unlimited holiday to staff is a less than desirable one. Many companies believe that it would be detrimental to the business, but the few businesses that do just that actually benefit from having such a flexible policy in place. Here are some of the pros and cons of offering an unlimited holiday incentive.
Pro: It Boosts Employee Happiness
One of the main reasons businesses such as Netflix offer unlimited holiday is that it improves the culture of the workplace and does wonders for employee morale. It’s becoming increasingly important for employees to establish a good work-life balance for its staff and unlimited time off could be the way to achieve equilibrium. Studies have shown that over half of employees cite a good work-life balance as being very important to them, so becoming a company that allows for this could set your business apart from the competition in terms of attracting candidates.
Con: You Have to Trust Your Staff
In order for unlimited holiday incentives to work, you have to really trust your employees. For this process to work, you have to build trust between you and your staff. From happier workers to increased productivity and a stronger reputation, there are many benefits to fostering a trusting work environment.
Pro: You’ll Attract and Retain the Very Best
Offering unique perks like unlimited holiday time is a great way to bring in the best in the business. In fact, 90% of millennials cite benefits as a better incentive than pay rises. HR systems like Cezanne make recruitment easier and with an incentive like this as well, your company could have the edge to secure top talent and retain them.
Con: Employees Might Abuse the Policy
One of the biggest drawbacks to such a generous policy is that some employees might abuse the privilege. Naturally, there’s no guarantee that people in the team won’t take advantage but several studies have shown that this is rarely the case. In fact, often the opposite problem is true in that people have to be encouraged to take time off, with people even competing to take fewer days off.
Pro: Cut Costs
A standard paid time off policy usually results in a certain amount of unused days off at the end of the year and if the employee quits or retires, the business has to pay for those unused holiday days. But an unlimited time off policy means that there will be no accrued time off, so the business will save money overall.
Con: Holiday is No Longer a Reward
Holiday is often used as a reward or a perk of the job and senior employees may not like the idea of every worker having unlimited time off. If they’ve worked hard for their positions within the company, they may now feel as though they deserve greater perks than new recruits. But if you’re on the fence about such a policy, consider a hybrid version that comes with some boundaries such as a set number of days for new employees that becomes unlimited the longer they’ve been with the company.