{"id":1735,"date":"2022-06-15T18:35:00","date_gmt":"2022-06-15T17:35:00","guid":{"rendered":"https:\/\/rethinkq.adp.com\/?p=1735"},"modified":"2024-09-03T16:03:38","modified_gmt":"2024-09-03T15:03:38","slug":"how-unlimited-vacation-actually-plays-out","status":"publish","type":"post","link":"https:\/\/rethinkq.adp.com\/how-unlimited-vacation-actually-plays-out\/","title":{"rendered":"How unlimited vacation actually plays out"},"content":{"rendered":"\n<header class=\"entry-header bg-adp-tan block--article-header alignfull block--article-header\" >\n\n  \n\n<figure class=\"wp-block-image size-full entry--image\"><img decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash.jpg\" alt=\"Image description: A wide cobbled street lined with historic four-and-five story buildings, painted in pastel shades of cream; the street is filled with cyclists. End of alt text.\" class=\"wp-image-1736\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash.jpg 1920w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash-300x200.jpg 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash-1024x683.jpg 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash-768x512.jpg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash-1536x1024.jpg 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/gabriella-clare-marino-PMBlZdHap0-unsplash-375x250.jpg 375w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/unsplash.com\/@gabiontheroad?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noreferrer noopener\">Gabriella Clare Marino<\/a> \/ <a href=\"https:\/\/unsplash.com\/?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noreferrer noopener\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group entry--title-wrapper\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><div class=\"entry--social-share\">\n  <ul>\n    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/rethinkq.adp.com\/how-unlimited-vacation-actually-plays-out\/&#038;t=How unlimited vacation actually plays out\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/facebook.svg\" alt=\"Facebook logo - click to share this article on Facebook\"><\/a><\/li>\n    <li><a href=\"http:\/\/twitter.com\/share?text=How unlimited vacation actually plays out&#038;url=https:\/\/rethinkq.adp.com\/how-unlimited-vacation-actually-plays-out\/\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/twitter.svg\" alt=\"Twitter logo - click to share this article on Twitter\"><\/a><\/li>\n    <li><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Frethinkq.adp.com%2Fhow-unlimited-vacation-actually-plays-out%2F\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/linkedin.svg\" alt=\"LinkedIn logo - click to share this article on Facebook\"><\/a><\/li>\n  <\/ul>\n<\/div>\n\n            <a class=\"entry--tag tag-style\" href=\"https:\/\/rethinkq.adp.com\/time-for-universal-basic-income\/\">Features<\/a>\n\n        \n  <h1 class=\"entry-title\">How unlimited vacation actually plays out<\/h1>\n\n\n<p class=\"is-style-summary-style\">Some companies attract talent by offering unlimited vacation days. But how does unlimited PTO work in the real world?<\/p>\n<\/div><\/div>\n\n\n  <div class=\"entry--meta content-width\">\n           <p class=\"authors\">By\n                        <a href=\"https:\/\/rethinkq.adp.com\/author\/adejoke-adeboyejo\/\">Adejoke Adeboyejo<\/a>\n\n             \n         \n     <\/p>\n    \n  \n  <p>15 June 2022  <span class=\"desktop-only\">\u2014<\/span> <a href=\"https:\/\/rethinkq.adp.com\/issue-5-out-of-office\/\">Issue 5: Out of Office<\/a> \n  <\/div><!-- .entry-meta -->\n\n<\/header><!-- .entry-header -->\n\t<div class=\"entry-content content-width\">\n\n\n\n<p>Well-being has become a priority for many organizations, as stress and burnout have been on the rise since the start of the pandemic. As the <a href=\"https:\/\/bottomline.adp.com\/beating-the-great-resignation-7-ways-to-turn-employee-schedules-into-a-hiring-retention-asset\/\" target=\"_blank\" rel=\"noreferrer noopener\">Great Resignation<\/a> continues, many companies are willing to try anything to retain employees and attract the best talent. And so some are considering implementing unlimited paid time off policies, accelerating a trend that was gaining steam even before the pandemic forced a fundamental rethinking of work-life balance.<\/p>\n\n\n\n<p>Unlimited paid time off was pioneered by <a href=\"https:\/\/abovethelaw.com\/2008\/12\/kirkland-ellis-new-vacation-policy-tastes-great-but-is-it-less-filling\/\" target=\"_blank\" rel=\"noreferrer noopener\">law firms<\/a> hoping to attract talent by offering more autonomy; under the scheme, workers can take as much time off as they want, as long as their work gets done. The tech giant <a href=\"https:\/\/incafrica.com\/library\/justin-bariso-netflixs-unlimited-vacation-policy-took-years-to-get-right-its-a-lesson-in-emotional-intelligence\" target=\"_blank\" rel=\"noreferrer noopener\">Netflix<\/a> later adopted unlimited PTO and pushed it toward the mainstream; other tech companies like Dropbox, HubSpot, Evernote and LinkedIn followed suit.&nbsp;<\/p>\n\n\n\n<p>In the pandemic-era workplace, scheduling flexibility is one of the perks employees want most, according to <a href=\"https:\/\/www.adp.com\/spark\/articles\/2021\/08\/5-trends-in-employee-benefits-and-compensation.aspx?ite=8086&amp;ito=2500&amp;itq=6c717029-93a5-475d-8b12-95038c4b76fa&amp;itx%5Bidio%5D=125198479\" target=\"_blank\" rel=\"noreferrer noopener\">ADP<\/a>, including having more time off. A Harris poll of more than 2,000 U.S. workers for <a href=\"https:\/\/fortune.com\/2022\/02\/23\/employers-increasing-pay-benefits-workers\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fortune<\/a> in February 2022 found that 65% of respondents would like to have unlimited paid time off. And employers are listening: The share of LinkedIn job postings offering some version of unlimited PTO nearly doubled between April 2021 and April 2022, Bloomberg reports.&nbsp;<\/p>\n\n\n\n<p>Research shows that the younger workforce is especially attracted to unlimited PTO. The Harris Poll found that 74% of Gen Z respondents wanted unlimited time off, compared to 70% of Millennials, 68% of Gen Xers and just 45% of Baby Boomers.&nbsp;<\/p>\n\n\n\n<p>How unlimited PTO works in practice is as varied as HR experts\u2019 opinions on whether such a policy is in employees\u2019 best interests. So how does unlimited PTO really work in organizations in the real world?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why try unlimited vacation?<\/h2>\n\n\n\n<p>Cordelia Morgan is the head of people at KaFe Rocks Group, a remote-first company in Malta. Her company adopted unlimited PTO to give employees a better work-life balance.&nbsp;<\/p>\n\n\n\n<p>\u201cGoing through some historical data after I joined the company, I saw that employees usually referenced wanting better work-life balance, like getting to spend more time with family and friends,\u201d she says. \u201cI also noticed that other companies in our industry were doing progressive things with their leave policy, so why shouldn\u2019t we? This is where the idea of unlimited vacation came in. It makes sense for us to let our people take holidays when they want and when they need it, to be able to rest, recuperate or just enjoy some time off.\u201d<\/p>\n\n\n\n<p>According to Morgan, unlimited PTO at her company was recently implemented, so it\u2019s still too early to say how much difference it has made compared to the previous policy of&nbsp; limited holidays. \u201cThere might be a few extra-long weekends or extra few days at Christmas time, but we\u2019re not really expecting significant change in the time taken off,\u201d she says.<\/p>\n\n\n<div class=\"block--sidebar bg-adp-navy alignwide alignwide\"><div class=\"block--sidebar__inner\">\n\n<h2 class=\"wp-block-heading\">Considering offering unlimited PTO?<\/h2>\n\n\n\n<p>Lee Thawley and Vicky Pritchard are co-founders of Muddywellies, a U.K. consultancy in brand building and employee engagement. The company assessed how unlimited PTO plays out in various organizations and highlighted considerations that could help make such a policy effective:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consider the business\u2019s stage of growth:<\/strong> According to Lee, most of the companies which have adopted unlimited PTO are big or fairly big organizations. \u201cWhile it\u2019s great to have such companies as models, it\u2019s important to look at where your organization is at, considering its size and structure.\u201d<\/li>\n\n\n\n<li><strong>Consider the skill sets:<\/strong> \u201cIt\u2019s important to consider if you have enough people and the skill sets available on your team.\u201d Thawley says. \u201cAdopting an unlimited vacation policy may mean having people who could fit into and perform various roles. How do you manage it when you&#8217;ve got small teams of specialist skills?\u201d<\/li>\n\n\n\n<li><strong>Company culture:<\/strong> Thawley says having the right culture in place helps moderate behavior and impacts how employees handle the policy. \u201cWhen employees understand that they have to deliver, they can structure their time in a way that taking time off does not affect the company\u2019s activities negatively.\u201d<\/li>\n<\/ul>\n\n<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\">Does unlimited PTO work?<\/h2>\n\n\n\n<p>Here\u2019s the paradox: If a worker has unlimited vacation days, will they actually use them? Some studies have found that employees with unlimited PTO took fewer days off on average than those with limited vacation days. J.B. Chaykowsky, who works for a London-based financial software company, said that was his experience when he worked in a company with an unlimited vacation policy.<\/p>\n\n\n\n<p>\u201cWe had intense timelines, which made you feel guilty for taking time off, as if you were letting the company down,\u201d Chaykowsky says. \u201cAs a high performer, you want to always make an impact, and if you take time off in a competitive environment, you feel you are missing out. I always felt the pull of work and took little time off. There is always one reason or another not to take time off.\u201d<\/p>\n\n\n\n<p>Skye Mercer is a human resources consultant based in Iowa in the United States who has worked with companies with both limited and unlimited paid time off policies. She believes having an unlimited PTO policy alone does not work. One option is to require a minimum amount of time off, but even then, it is important to have the culture that backs it up. In Mercer\u2019s experience, employees with unlimited PTO are unlikely to unplug completely.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p> It makes sense for us to let our people take holidays when they want and when they need it.<\/p><cite>Cordelia Morgan, Head of People at KaFe Rocks Group<\/cite><\/blockquote><\/figure>\n\n\n\n<p>\u201cIn my experience, mandatory PTO or unlimited vacation means that employees continue working even while on vacation,\u201d she says. \u201cIf a company is known for a fast-paced culture where people are overworked, they usually go on vacation with their laptops and cell phones and are available to their supervisor because no one is covering their work.\u201d<\/p>\n\n\n\n<p>Beyond having a written policy, company leadership should be able to shape the policy with flexibility and boundaries, so employees can work in ways that suit their productivity best, according to Mercer. \u201cIt\u2019s important to have a policy with clear roles, responsibilities and expectations at every level of the organization; individual, supervisory and executive leadership,\u201d she says.&nbsp;<\/p>\n\n\n\n<p>Chaykowsky agrees. \u201cWhile unlimited vacation might be a nice-to-have perk, the company must have a supportive culture, a working plan and adequate staffing,\u201d he says.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-1024x683.jpg\" alt=\"Image description: Closeup of a person in a red hooded sweatshirt sitting by an open laptop looking at the phone in their hand. End of alt text.\" class=\"wp-image-1737\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-1024x683.jpg 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-300x200.jpg 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-768x512.jpg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-1536x1024.jpg 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03-375x250.jpg 375w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/PYFH03.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Is there such a thing as too much vacation?<\/h2>\n\n\n\n<p>Jakub Rudnik is the Head of Content at <a href=\"https:\/\/scribehow.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Scribe<\/a> and has managed more than 40 employees in three companies, two of which offered unlimited PTO. He reports just one instance of over-the-top vacation taking.&nbsp;<\/p>\n\n\n\n<p>\u201cI only had one employee who abused the policy, and we had to have a conversation,\u201d Rudnik says. \u201cIn most cases, you had to encourage people to take days off. Most preferred taking long vacations and didn\u2019t just take days off at random. In my experience, employees that have this policy work harder and are more invested in the company.\u201d<\/p>\n\n\n\n<p>Morgan says that although there are risks to having unlimited PTO, having a great communication culture and structure helps keep potential problems at bay. Employees at her company are required to give a month\u2019s notice if they want to take more than three weeks off, so the company can plan effectively, but a day\u2019s notice would suffice if an employee needed just a few days off. A tool tracks holiday time approved by managers.<\/p>\n\n\n\n<p>\u201cWe are a remote-first company, so communication is a big deal to us; we are output-focused and are not so bothered about when people do their work,\u201d Morgan says.&nbsp;<\/p>\n\n\n\n<p>The trend seems to be centered in the United States, though it\u2019s also spreading globally. Workforce consultant Willis Towers Watson reports that just 5% of companies with at least 100 workers offer unlimited time off. A major difference is that U.K. employment laws give most full-time employees <a href=\"https:\/\/www.gov.uk\/holiday-entitlement-rights\" target=\"_blank\" rel=\"noreferrer noopener\">at least 28 days<\/a> paid leave a year, while in the U.S., the <a href=\"https:\/\/www.footholdamerica.com\/faqs\/employing-a-us-worker\/how-many-paid-holiday-days\/#:~:text=The%20number%20of%20days%20varies,to%2010%20days%20of%20holiday.\" target=\"_blank\" rel=\"noreferrer noopener\">average leave<\/a> is 10 days per year, and there is no federal minimum.&nbsp;<\/p>\n\n\n\n<p>\u201cHaving a clear policy and guidelines on how unlimited vacation should play out helps the implementation,\u201d Mercer says. \u201cI think the company must be clear on what the value of work-life balance, flexibility, and honoring employees\u2019 boundaries means. What does that look like?\u201d<\/p>\n\n\n\n<p>At the employee level, there needs to be clear communication of boundaries with the manager about things like expectations and availability.<\/p>\n\n\n\n<p>\u201cThe manager should honor the employee\u2019s boundaries and respect their schedule. At the executive level, there should be policies in place and managers trained to fully understand the policies, thereby creating a culture where there&#8217;s mutual agreement, expectation and respect among leadership and employees.\u201d<\/p>\n\n\n<div class=\"block--author\">      <div class=\"block-author__inner\">\n        <div class=\"author--image\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/adejoke-adeboyejo\/\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/profile_Adejoke-Adeboyejo-298x305.png\" alt=\"\" \/><\/a>\n                  <\/div>\n        <div class=\"author--info\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/adejoke-adeboyejo\/\" class=\"author--name\">Adejoke Adeboyejo<\/a>\n\n          \n          <p>Adejoke Adeboyejo is a freelance writer and journalist based in Lagos, Nigeria. Having worked in human resources for more than 12 years, she now writes about the workplace, women\u2019s issues and the environment.<\/p>\n          <div class=\"block--author-social\"><ul class=\"author--socials\"><li><a href=\"https:\/\/www.linkedin.com\/in\/adejoke-adeboyejo-hr-tech-renewable-energy-writer\/\" title=\"LinkedIn\" target=\"_blank\"><i class=\"fab fa-linkedin\"><\/i><\/a><\/li><li><a href=\"https:\/\/theresourcewriter.com\/\" title=\"Author Website\" target=\"_blank\"><i class=\"fas fa-globe\"><\/i><\/a><\/li><\/ul><\/div>\n        <\/div>\n      <\/div>\n       <\/div>\n\n<div class=\"block--recommended-content alignwide is-style-bg-adp-tan\"><div class=\"block-recommended-content__inner\">\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/the-need-for-time-off\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/05\/markus-spiske-H2R9j8VT_rU-unsplash-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">Out of office: The need for time off<\/span>\n          <p>Workloads are surging, and remote workers are especially burdened. Disconnecting from work is essential for employee wellbeing. \n<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/new-zealand-holiday-pay-problems\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/04\/istockphoto-540529776-2048x2048-1-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">Fixing New Zealand\u2019s holiday pay problems<\/span>\n          <p>Payments under New Zealand\u2019s Holidays Act have been a significant source of cost and confusion for years. Will a new law be any better? <\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/paid-time-off-global-pto\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/11\/istockphoto-1363990365-1024x1024-1-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">A world of difference in paid time off\u00a0<\/span>\n          <p>From the \u201cno-vacation nation\u201d to taking time off with barely a day\u2019s notice, PTO practices vary widely around the globe. <\/p>        <\/div>\n      <\/a><\/div> <\/div>\n<\/div><\/div>\n\n\n<section class=\"wp-block-group alignfull section--sign-up has-background\" style=\"background-color:#7967ae\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center is-style-default has-white-color has-text-color has-large-font-size\"><a href=\"\/sign-up\/\">Sign up<\/a> to keep up to date with ReThink Q.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Some companies attract talent by offering unlimited vacation days. But how does unlimited PTO work in the real world?<\/p>\n","protected":false},"author":1,"featured_media":1736,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[116],"tags":[209,211,208],"coauthors":[18],"class_list":["post-1735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-holidays","tag-pto","tag-vacation-days","issue-issue-5-out-of-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How unlimited vacation actually plays out - ADP ReThink Q<\/title>\n<meta name=\"description\" content=\"Some companies attract talent by offering unlimited vacation days. 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