Is Unlimited Vacation Time a Good Policy?
See what your peers said
In a recent Two Minute Survey, we asked HR practitioners about their vacation policies and the concept of unlimited vacation time. The majority 58% felt this was a concept that companies, such as Netflix, who have adopted this practice would eventually regret. However, it should be noted that more than quarter (26%) reported this made sense or was at least an idea worth investigating. The survey results are below:
1. The idea of unlimited vacation time is:
|A crazy idea that companies will eventually regret||
|Not sure if we would do it, but it is worth investigating||
|An idea that makes sense||
|We are considering it||
|I like it, but don’t think our company would consider, or company structure would not allow||
2. Are you currently pleased with your vacation/time off policies?
3. What is the maximum number of weeks you currently allow for vacation?
4. What is the maximum number of days an employee can take during the first year of employment?
The average number of days for all companies was 10 days. If companies that indicated 0 are included the average becomes nine. Companies giving time off during the first year gave as few as one and as many as 34.
5. Whether you have a traditional vacation system or use a PTO bank, how long must an employee work for your company to have enough days to take two weeks off?
The average number reported was eighteen months with a range of 90 days to 10 years. The most common time period reported was one year.
6. Whether you have a traditional vacation system or use a PTO bank, how long must an employee work for your company to have enough days to take three weeks off?
The average number reported was five years with a range of 90 days to 10 years. The most common time period reported was five years.
7. Employees are paid accumulated but unused vacation time in which of the following circumstances?
|Involuntary termination (e.g., layoff, retirement, etc.)||
|Voluntary termination without notice||
|None of the above||
8. How much advance notice is required from employees requesting vacation time?
|No advance notice is required||
|Less than one week||
|One week’s notice||
|Two week’s notice||
Companies indicating Other۪ most often cited their flexibility in accommodating the request especially if coverage was available. Therefore, no set notice time was required.
Be sure to take this month’s Two Minute Survey on overtime practices.
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