ASK NH: What are your thoughts/experiences with 'unlimited vacation days'?

I'm interning at a trading company which has this policy. It seems to work well. Most traders want to be at work and trading when the time is right so they can make money. It's fairly slow over the summer, so lots of Fridays/Mondays are being taken off right now. Also, everybody is in teams so they have to coordinate it so that at least one member is always around.

From a business owner standpoint, as long as its self-policing it seems like a good way to keep people happy. From an employee standpoint I would believe it to be to truly unlimited in this type of situation. If there aren't teams or the profit you generate for the company isn't bunched into short periods of time, I would be leery to just take off for a month + while everybody else is still working. I think it would result in less vacation being taken since nobody would want to look lazy like provoost touched on.

This cannot be good! This type of vacation can lead to politics since you’ve not technically "earned it". It reminds me of a company where there were no start/end hours for the day, but the politics around those showing up after nine and/or leaving before five was suffocating and completely unfair (eyes rolled when the less politically favored came late or left early while those favored always got away with “there are no set hours”).

People favored will get no push from management for longer or more frequent vacation while those not that good with sucking up feel pressure when asking for vacation. Then in your review they might say you took too much vacation showing lack of interest - nothing good can come out of this. Unwritten rules = politics.

Yes! That's one of my concern. We're so used to written rules and set limits. Vacation days are usually defined and typically 'earned'.

If there is a defined number and person A doesn't like that person B has 5 more days, person A can't blame person B and has to talk to the Boss.

However, if there is no defined number and person A takes 5 more days then maybe person B, D, E might take issue. It's unwritten and undefined, why did person A take more days..?

Hubspot is doing this. I found it to be very refreshing while working at Hubspot. It was a very wonderful way to work. "Come in when you want, leave when you want as long as you get your work done" Your schedule is agreed with the small team you're in and when you're tired, take as much rest as you want.

I think the touching thing about it, was that the CEO's Brian Halligan and Dharmesh Shah, were worried that people would forget to take their vacations.

By the way, Hubspot isn't a small company. They're above 200 people now--and it's working great for them.

I think when I have the opportunity to run an organization, I'll go with the no vacation policy as well.

If you don't mind me asking, how many vacation days did you take? Or the average taken in the company/department?

In New Zealand, holiday pay is accrued by your employer and paid out to you when you take time off or when your employment ends. This generally means that when you leave a company you get your unused holiday pay paid out to you in a lump sum, which can be helpful when looking for a new job.

With unlimited vacation time, I guess you'd have to use it or lose it. I'd probably be more inclined to take time off during the year than see the opportunity be wasted. If holiday pay can be saved up it doesn't feel like there's an opportunity cost to not taking time off.

That's the confusing part. How much do you actually take..?

The skeptic in me suspects that companies doing this are counting on group dynamics to bring the actual number of vacation days below the usual number.

I looked around on Google a bit for statistics, but I couldn't find them. I did find some research that mentions unlimited leave / vacation and they found that 1% of companies offered it last year, but they don't show how much people use it. http://media.npr.org/assets/news/2010/08/11/survey.pdf

Some articles mention studies showing that productivity has gone up as a result of such a policy. Again, the skeptic in me wonders how much of that productivity is due to people taking less holidays. On the other hand, I rarely trust any metric of productivity anyway.

I worked for a company that allowed their 'white collar' workers unlimited vacations. It wasn't uncommon for people to take six to eight week vacations, but they almost always were working vacations with cell phone and laptop in tow.

It worked well for everyone, I think.

I think it can work well in small, well-bonded teams.