Virgin, Netflix, Groupon, Best Buy...all have this in common: Unlimited Vacation for their employees.
Does this mean that employees will never show up for work or will be lazy on the job? Studies are showing otherwise.
Unlimited vacation is a cutting edge idea of trust. Hiring people that you trust will excel and fulfill their responsibilities, regardless of clocking in and out and filling out timecards. This benefit actually makes the employee more responsible. As this article points out, here are some bonuses to this perk:
(1) Low cost way for companies to provide an attractive incentive
(2) Company does not have to pay back unused vacation time
(3) Employees less likely to call in sick
(4) Employees less likely to shuffle off work to their co-workers when they take time off
(5) Employees more likely to work while they are on vacation
What are your thoughts? Would this incentivize you to work more/harder?
I think that as long as the company is able to hire and fire at will, and the employee knows that if they slack on the job, there are hundreds others eager to take that place, employees will thrive with this perk.
Here is Branson's take on it:
“It is left to the employee alone to decide if and when he or she feels like taking a few hours, a day, a week or a month off, the assumption being that they are only going to do it when they feel 100% comfortable that they and their team are up to date on every project and that their absence will not in any way damage the business—or, for that matter, their careers!”