The Limits of Unlimited Vacation

Chris Boman was quoted in SHRM on March 1, 2015. The article “The Limits of Unlimited Vacation” explored the benefits of an unlimited vacation policy and the importance of making sure the policy is a good cultural fit for your company.

Chris was quoted on the benefits of implementing an unlimited vacation policy.

Financially, companies are in a position to save from adopting unlimited vacation. It’s not because they’re counting on employees not to take much vacation; it’s because workers can’t stockpile their days for a big payout when employment ends, creating an unofficial severance package. Some companies keep this in check by allowing employees to carry over a maximum number of days into the next calendar year. In California, however, state law bans use-it-or-lose-it vacation policies, requiring companies to pay out all accrued, unused vacation time upon a worker’s departure, explained Chris.

“A lot of companies believe their employees are abusing the vacation system,” Chris said. While employees may not be taking formal time off, he continues, they may not be fully functioning at work, either, whether because they are slacking off or taking pockets of unrecorded time. “I think the knee-jerk reaction for employees may be, ‘I’m losing a benefit,’ ” he said, “when really [employers are giving] a compliment to the workforce, saying, ‘We trust you to be accountable professionals.’ ”

To read the full article, please visit SHRM.