{"id":25390,"date":"2021-01-20T21:25:00","date_gmt":"2021-01-21T01:25:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=25390"},"modified":"2021-01-30T19:33:00","modified_gmt":"2021-01-30T23:33:00","slug":"unlimited-vacation-policy","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/","title":{"rendered":"Unlimited Vacation Policy: Does It Actually Work?"},"content":{"rendered":"\n<p>What is an unlimited vacation policy? Does it make employees work more or do they take advantage and disappear for long periods?<\/p>\n\n\n\n<p>Reed Hastings, CEO of Netflix, focuses on work <a href=\"https:\/\/www.shortform.com\/blog\/quality-is-better-than-quantity\/\">quality over quantity<\/a>. In keeping with that philosophy, an unlimited vacation policy allowed employees to take off time as they desired as long as they&#8217;re getting what they need to do done.<\/p>\n\n\n\n<p>Keep reading for more about the unlimited vacation policy at Netflix, as shared by Reed Hastings in <em>No Rules Rules<\/em>.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Implementing an Unlimited Vacation Policy<\/strong><\/h2>\n\n\n\n<p>Even before launching Netflix, Hastings believed that the <em>quality <\/em>of employees\u2019 work mattered more than the <em>quantity <\/em>of time they spent producing it, especially in creative industries. If a worker produces great work and gets it done in 25 hours instead of 40, her achievement should be celebrated more than that of someone who toils on the clock for 40 hours to achieve the same thing. So when an employee questioned the company\u2019s vacation policy, Hastings decided to get rid of it altogether: Since 2003, Netflix has neither allotted vacation time nor tracked days off. However, Hastings created other parameters to ensure that the unlimited vacation policy created more benefit than harm.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Prevent Employees From Taking Too Much or Not Enough Vacation<\/strong><\/h3>\n\n\n\n<p>Despite the benefits of an unlimited vacation policy, Hastings had to implement the change strategically in order to avoid two potential problems.&nbsp;<\/p>\n\n\n\n<p><strong>Problem #1:<\/strong> Workers take too much vacation. If too many people take off at once, or they leave while their team is pushing to meet a deadline, this could cripple workflow, especially with a small staff (as Netflix had when the policy went into effect).<\/p>\n\n\n\n<p><strong>Solution #1: <\/strong>In the absence of <em>controls<\/em>, managers must lead with <em>context<\/em> (we\u2019ll talk more about leading with context in Chapter 9). Managers must give employees enough context to make sound decisions about when to take vacations and for how long. This may include telling employees that:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>They can\u2019t take vacations within two weeks of a deadline.<\/li><li>No more than one team member can be out at one time.<\/li><li>They must consider whether their time off will hurt the rest of the team.<\/li><li>They must give two weeks\u2019 notice for a five-day vacation and a month\u2019s notice for a month-long vacation.<\/li><\/ul>\n\n\n\n<p>Other companies\u2014including Glassdoor, LinkedIn, and Virgin Management\u2014followed Netflix\u2019s lead and also have an unlimited vacation policy. They found the following guidelines helpful:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Do everything necessary to <a href=\"https:\/\/www.shortform.com\/blog\/steps-to-achieve-your-goals\/\">achieve your goals<\/a>.<\/li><li>Don\u2019t do anything that inhibits others from reaching their goals.<\/li><li>Make decisions that are in the best interest of the company.<\/li><\/ol>\n\n\n\n<p><strong>Problem #2: <\/strong>Workers take too little vacation, because they don\u2019t want colleagues to think they\u2019re not carrying their weight. Under normal vacation policies, the threat of losing unused vacation days often motivates employees to take time off if they wouldn\u2019t otherwise.<\/p>\n\n\n\n<p><strong>Solution #2: <\/strong>Leaders must set an example by taking big vacations, talking openly about them, and <a href=\"https:\/\/www.shortform.com\/blog\/how-to-encourage-employees\/\">encouraging employees<\/a> to do the same. Regardless of what managers <em>say<\/em>, workers will follow what they <em>do<\/em>\u2014if they say that everyone should feel free to take plenty of vacation, but they only take a week off all year, employees won\u2019t feel comfortable taking long vacations. Similarly, if the CEO takes five weeks\u2019 vacation but a department head barely takes two, that manager\u2019s team will follow her lead. In other words, <strong>all leaders<\/strong>\u2014from the executive suite to the middle managers\u2014<strong>must set a good example of <a href=\"https:\/\/www.shortform.com\/blog\/finding-balance-between-work-and-life\/\">work-life balance<\/a> for their subordinates.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Employee Productivity Increased<\/strong><\/h3>\n\n\n\n<p>Surprisingly, employees don\u2019t take significantly more time off with an unlimited vacation policy than they did under a restricted vacation policy\u2014and the same has been true at several other companies that have also eliminated their vacation policies. <strong>Despite little to no change in behavior, employees greatly appreciate the freedom, which boosts morale, productivity, and creativity. <\/strong>Additionally, the policy (or non-policy) brings other significant benefits:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>It gives employees more control over their lives to create a work-life balance, which improves their job satisfaction and performance.&nbsp;<\/li><li><strong>It makes it easier to attract and retain the industry\u2019s top talent<\/strong>, especially millennials and Gen Z workers who favor less restrictive work settings.&nbsp;<\/li><li>It cuts the administrative costs of tracking employees\u2019 vacations and days off.<\/li><li>It sends a message to employees that management trusts them, which inspires them to live up to that trust. After implementing the policy, Hastings noticed subtle ways in which people started taking more responsibility around the office, such as throwing out expired milk in the office kitchen.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>What is an unlimited vacation policy? Does it make employees work more or do they take advantage and disappear for long periods? Reed Hastings, CEO of Netflix, focuses on work quality over quantity. In keeping with that philosophy, an unlimited vacation policy allowed employees to take off time as they desired as long as they&#8217;re getting what they need to do done. Keep reading for more about the unlimited vacation policy at Netflix, as shared by Reed Hastings in No Rules Rules.<\/p>\n","protected":false},"author":6,"featured_media":1238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14,30],"tags":[200],"class_list":["post-25390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","category-work","tag-no-rules-rules","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Unlimited Vacation Policy: Does It Actually Work? - Shortform Books<\/title>\n<meta name=\"description\" content=\"How does an unlimited vacation policy work? Instead of counting time on the clock and off, Netflix allows employees time off as needed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unlimited Vacation Policy: Does It Actually Work?\" \/>\n<meta property=\"og:description\" content=\"How does an unlimited vacation policy work? Instead of counting time on the clock and off, Netflix allows employees time off as needed.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-21T01:25:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-30T23:33:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/09\/48-laws-of-power-law-30.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"779\" \/>\n\t<meta property=\"og:image:height\" content=\"517\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rina Shah\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rina Shah\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\"},\"author\":{\"name\":\"Rina Shah\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/d07435826f13a8f422d5d333dceac287\"},\"headline\":\"Unlimited Vacation Policy: Does It Actually Work?\",\"datePublished\":\"2021-01-21T01:25:00+00:00\",\"dateModified\":\"2021-01-30T23:33:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\"},\"wordCount\":769,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/09\/48-laws-of-power-law-30.jpg\",\"keywords\":[\"No Rules Rules\"],\"articleSection\":[\"Business\",\"Management\",\"Work\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\",\"name\":\"Unlimited Vacation Policy: Does It Actually Work? - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/09\/48-laws-of-power-law-30.jpg\",\"datePublished\":\"2021-01-21T01:25:00+00:00\",\"dateModified\":\"2021-01-30T23:33:00+00:00\",\"description\":\"How does an unlimited vacation policy work? 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