At first I thought unlimited vacation would be a good idea. After all, it was in Netflix’s famed “Culture Deck,” and it seemed to work well for them. However, this seemed to put more pressure on employees — the good ones might worry that they were taking too much vacation and not take any.
I agree. It's better to give a generous amount of vacations every year (5-6 weeks) than say "it's unlimited!". Also make sure you "punish" people not taking any vacations.
Also related, we don't have "hours". To avoid the perverse effect of people working 10h/day, I make it clear by showing up at 11h some days or leaving a 15h00.
Working hard is important, working a lot, not that important: I pay you for results, not for presence.