{"id":58295,"date":"2022-01-15T10:53:26","date_gmt":"2022-01-15T14:53:26","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=58295"},"modified":"2022-01-24T09:11:32","modified_gmt":"2022-01-24T13:11:32","slug":"netflix-vacation-policy","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/","title":{"rendered":"Netflix&#8217;s Vacation Policy: They Don&#8217;t Track Time Off?"},"content":{"rendered":"\n<p>How does Netflix&#8217;s vacation policy of unlimited time off work? How can managers prevent employees from taking too much time off? <\/p>\n\n\n\n<p>One of the non-policies Netflix is known for is its &#8220;no vacation policy.&#8221; This means that all employees can take as many vacation days as they want without being tracked. Of course, they had to put some safety measures into place to prevent bedlam. <\/p>\n\n\n\n<p>Let&#8217;s go over how Netflix&#8217;s <a href=\"https:\/\/www.shortform.com\/blog\/unlimited-vacation-policy\/\">unlimited vacation policy<\/a> works.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-abolish-vacation-and-expense-policies\"><strong>Abolish Vacation and Expense Policies<\/strong><\/h2>\n\n\n\n<p>With a highly motivated staff and a <a href=\"https:\/\/www.shortform.com\/blog\/culture-of-candor\/\">culture of candor<\/a> and accountability, Netflix CEO Reed Hastings was able to give Netflix employees more freedom and empower lower-level employees to make decisions that most companies delegate to managers and executives. This also enabled Hastings to implement another unconventional measure at Netflix: He abolished the vacation policy.<\/p>\n\n\n\n<p>Giving employees so much freedom is unorthodox and can be risky. To safeguard against abuse, Hastings says you should remove controls strategically to ensure that employees understand the weight of responsibility and the context to make good decisions. If done well, this creates a culture in which autonomy and accountability spiral up: As employees enjoy more freedom, they act more responsibly, and<strong> as they act more responsibly, management can feel confident offering more freedom.<\/strong>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>How to <a href=\"https:\/\/www.shortform.com\/blog\/how-do-you-hold-employees-accountable\/\">Hold Employees Accountable<\/a><\/strong><br><br>Hastings uses the unconventional practices at Netflix to drive the message that great freedom comes with great responsibility, but he doesn\u2019t explain how companies that don\u2019t have Netflix\u2019s unusual culture can create enough accountability to make the risky move of <em>abolishing<\/em> limits on vacations or expenses. <a href=\"https:\/\/hbr.org\/2016\/01\/the-right-way-to-hold-people-accountable\">To foster more accountability in your workplace<\/a>, experts say you should be clear about the following:<br><br><strong>Expectations<\/strong>\u2014discuss the results you expect from your employees, strategies for getting those results, and how you\u2019re going to measure outcomes. Then, ask them to summarize what you\u2019ve talked about to ensure you\u2019re on the same page.<br><br><strong>Skills and resources<\/strong>\u2014give them the tools to set them up for success. If you can\u2019t provide them with skills training and the right resources, it might <a href=\"https:\/\/www.shortform.com\/blog\/melania-trumps-be-best\/\">be best<\/a> to farm the tasks out to someone else.<br><br><strong>Milestones<\/strong>\u2014don\u2019t wait until it\u2019s too late to find out if your employees can meet your expectations. Set up milestones and regularly check in with them to see if they\u2019re on track.<br><br><strong>Feedback<\/strong>\u2014let them know how they\u2019re doing based on your agreed milestones. Then, ask if there\u2019s any way you can help.<br><br><strong>Consequences<\/strong>\u2014react appropriately. If they succeed, reward them. If they fail despite all the support you\u2019ve given them, you should let them know that they missed the mark and decide on a response that corresponds with the offense. For example, you could issue a verbal or written reprimand, give them a low score on their performance appraisal, or\u2014in extreme cases\u2014fire them.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>First, let\u2019s look at how Hastings strengthened this culture of autonomy and accountability when he removed Netflix&#8217;s vacation policy.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-abolish-the-vacation-policy\"><strong>Abolish the Vacation Policy<\/strong><\/h3>\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. So, since 2003, Netflix has neither allotted vacation time nor tracked days off.<\/p>\n\n\n\n<p>(Shortform note: If you\u2019re not able to implement an <em>unlimited<\/em> vacation policy in your organization, there are a few <a href=\"https:\/\/buffer.com\/resources\/minimum-vacation\/\">alternative policies you can try<\/a> to encourage employees to take enough time off: First, you can implement a <em>minimum<\/em> vacation policy, which relieves employees of the pressure of determining what\u2019s considered an acceptable amount of vacation time. Second, you can impose mandatory time off\u2014employees have to take one week off every four months (or any other specified time period). Third, you can <a href=\"https:\/\/www.nytimes.com\/2012\/04\/08\/business\/phil-libin-of-evernote-on-its-unusual-corporate-culture.html?_r=0\">reward employees<\/a> who go on vacation with spending money.)&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-addressing-vacation-time-issues\"><strong>Addressing Vacation Time Issues<\/strong><\/h4>\n\n\n\n<p>Despite the benefits of abolishing the vacation policy, Hastings had to implement the change strategically to avoid two potential problems:&nbsp;<\/p>\n\n\n\n<p><strong>Problem #1: Workers take <\/strong><strong><em>too much<\/em><\/strong><strong> vacation time. <\/strong>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>Managers must give employees enough <em>relevant information<\/em> to make sound decisions about when to take vacations and for how long. This may include telling employees that they can\u2019t take time off within two weeks of a deadline, or that no more than one team member can be out at a time.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>How to Manage Employees\u2019 Vacation Time Fairly<\/strong><br><br>While employees may understand that they can\u2019t all take time off at once, it may put you in an uncomfortable position if two employees happen to block off the same dates. To <a href=\"https:\/\/www.shortform.com\/blog\/how-to-avoid-conflict-in-relationships\/\">avoid conflict<\/a> within the team, experts give the following <a href=\"https:\/\/hbr.org\/2015\/06\/how-to-manage-your-teams-vacation-requests\">tips for managing vacation requests<\/a>:<br><br><strong>Discuss vacations as a team. <\/strong>That way, they can work out schedules among themselves prior to finalizing vacation plans. Emphasize that vacations are important and that you want everybody to have the opportunity to rest.<br><br><strong>Have a rota system. <\/strong>Have a rotating list so that people get a chance to pick their vacation dates ahead of everyone else each year, making sure that each employee gets their chance to be first.<br><br><strong>Close shop. <\/strong>It can be especially difficult to decide who gets to take a vacation around the holidays, so in the spirit of fairness, consider letting the whole company take a break at the same time.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Problem #2: Workers take <\/strong><strong><em>too little<\/em><\/strong><strong> vacation time. <\/strong>Some workers 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>Hastings and Meyer assert that leaders must set an example by taking big vacations, talking openly about them, and encouraging employees 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<figure class=\"wp-block-table\"><table><tbody><tr><td><strong><a href=\"https:\/\/www.shortform.com\/blog\/how-to-encourage-employees\/\">How to Encourage Employees<\/a> to Take Time Off<\/strong><br><br>Aside from using your vacation time yourself, which may not always be practical\u2014for instance, if you\u2019re in the middle of closing an important deal, or if your company is experiencing a major transition\u2014there are other ways to <a href=\"https:\/\/www.forbes.com\/sites\/theyec\/2020\/10\/15\/how-to-encourage-employees-to-take-time-off-and-recharge\/?sh=c9df29e2db0b\">encourage employees to take time off<\/a>:<br><br><strong>Systematize processes. <\/strong>Some employees are hesitant to go on leave because they\u2019re worried that things will go wrong without them. Encourage them to build systems that can run even without them around.<br><br><strong>Remind them. <\/strong>Send out announcements to encourage them to use their leave credits, especially around the holidays.<br><br><strong>Be supportive. <\/strong>When they ask for time off, ask them questions about their plans and be excited for them.<br><br><a href=\"https:\/\/hbr.org\/2021\/09\/the-future-of-flexibility-at-work\"><strong>Get rid of disincentives for use.<\/strong><\/a><strong> <\/strong>Some vacation policies reward employees for <em>not<\/em> taking time off. For example, your company might applaud when a new parent returns to work earlier than expected. Evaluate whether such unintended messages are keeping your employees from using their allotted vacation time.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-result-increased-employee-productivity\"><strong>The Result: Increased Employee Productivity<\/strong><\/h4>\n\n\n\n<p>Surprisingly, at Netflix, employees don\u2019t take significantly more time off with no vacation policy than they would under a restricted vacation policy. Additionally, Hastings notes, the policy (or non-policy) brings significant benefits:<\/p>\n\n\n\n<p>1)&nbsp; It gives employees more control over their lives to create a work-life balance, which improves their job satisfaction and performance. (Shortform note: If you can\u2019t give employees an unlimited vacation policy, you can still help them achieve work-life balance and <a href=\"https:\/\/www.forbes.com\/sites\/adigaskell\/2016\/01\/15\/why-a-flexible-worker-is-a-happy-and-productive-worker\/?sh=2405ce6f14c4\">increase their job satisfaction, performance, and productivity<\/a> by giving them a flexible work schedule.)<\/p>\n\n\n\n<p>2) It makes it easier to attract and retain the industry\u2019s top talent, especially millennials and Gen Z workers who favor less restrictive work settings. (Shortform note: Some argue that these perks may<em> attract<\/em> talented workers, but <a href=\"https:\/\/www.entrepreneur.com\/article\/251570\">they may not be enough to make them <em>stay<\/em><\/a>. While unlimited vacation can be a useful factor in luring in employees, what will make them commit to your company is a collaborative working environment where their ideas are respected. So, focus on building cohesive, innovative teams instead of fringe benefits.)&nbsp;&nbsp;<\/p>\n\n\n\n<p>3) It sends a message to employees that management trusts them, which inspires them to live up to that trust. (Shortform note: Abolishing the vacation policy is one way to show employees that you trust them, but make sure you <a href=\"https:\/\/hbr.org\/2017\/07\/want-your-employees-to-trust-you-show-you-trust-them\">don\u2019t undermine your efforts<\/a> with two cues that show you <em>don\u2019t<\/em> trust them: first, having a risk-averse workplace that stifles innovation; and second, prioritizing profits over relationships and <a href=\"https:\/\/www.shortform.com\/blog\/autonomy-at-work\/\">employee autonomy<\/a>.)&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How does Netflix&#8217;s vacation policy of unlimited time off work? How can managers prevent employees from taking too much time off? One of the non-policies Netflix is known for is its &#8220;no vacation policy.&#8221; This means that all employees can take as many vacation days as they want without being tracked. Of course, they had to put some safety measures into place to prevent bedlam. Let&#8217;s go over how Netflix&#8217;s unlimited vacation policy works.<\/p>\n","protected":false},"author":8,"featured_media":58338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[200],"class_list":["post-58295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","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>Netflix&#039;s Vacation Policy: They Don&#039;t Track Time Off? - Shortform Books<\/title>\n<meta name=\"description\" content=\"One of the things Netflix is known for is its unlimited vacation policy\u2014they don&#039;t even track vacation days. Learn how this policy works.\" \/>\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\/netflix-vacation-policy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Netflix&#039;s Vacation Policy: They Don&#039;t Track Time Off?\" \/>\n<meta property=\"og:description\" content=\"One of the things Netflix is known for is its unlimited vacation policy\u2014they don&#039;t even track vacation days. Learn how this policy works.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-15T14:53:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-24T13:11:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2022\/01\/girl-on-beach-vacation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1150\" \/>\n\t<meta property=\"og:image:height\" content=\"654\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hannah Aster\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hannah Aster\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/\"},\"author\":{\"name\":\"Hannah Aster\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/f39f52830e4f7039a16e45d12354542f\"},\"headline\":\"Netflix&#8217;s Vacation Policy: They Don&#8217;t Track Time Off?\",\"datePublished\":\"2022-01-15T14:53:26+00:00\",\"dateModified\":\"2022-01-24T13:11:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/\"},\"wordCount\":1521,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2022\/01\/girl-on-beach-vacation.jpg\",\"keywords\":[\"No Rules Rules\"],\"articleSection\":[\"Business\",\"Management\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/\",\"name\":\"Netflix's Vacation Policy: They Don't Track Time Off? - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/netflix-vacation-policy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2022\/01\/girl-on-beach-vacation.jpg\",\"datePublished\":\"2022-01-15T14:53:26+00:00\",\"dateModified\":\"2022-01-24T13:11:32+00:00\",\"description\":\"One of the things Netflix is known for is its unlimited vacation policy\u2014they don't even track vacation days. 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