Should your company offer employees unlimited vacation time?

canstockphoto21474551LinkedIn recently announced they are now offering their employees unlimited vacation days. They join a growing list of companies including Virgin Atlantic and many smaller companies who are adopting this policy.

Employees may take weeks at a time, a day here and there, or a combination that best suits their needs, at their discretion. Here are some reasons to consider offering unlimited vacation time to your employees:

Cost savings

Employers don’t have to pay their employees for unused vacation time and the administrative costs associated with keeping track of time off.


Employees want to be treated like adults and trusted to get the job done. Most want their employers to trust that they know what work needs to get done and when. That level of trust goes a long way to attract and retain good employees.

When you give your employees the opportunity to decide for themselves when they take their vacations, you are demonstrating that you trust them to know what works best for them and for the company when it comes to taking time off.

Time off increases productivity

The Society for Human Resource Management (SHRM), in collaboration with the U.S. Travel Association, conducted a survey to examine HR professionals’ opinions about the importance of vacation. Most believe that when employees take vacation, it has a positive impact on performance, morale, wellness, culture, productivity and retention.

Will employees abuse this policy?

It’s natural to assume that this type of policy will cause employees to take too much time off. One company which has implemented this policy reports that is not the case.

An article written by Joe Reynolds, founder of Red Frog Events, an event production company based in Chicago, Illinois, discusses the impact of their unlimited vacation policy.

“Taking vacation at Red Frog is encouraged (and even celebrated). And it’s not abused. Ever. By anyone. Simply make sure your work is getting done and make sure you’re covered while you’re away and that’s it — no questions asked.”

Reynolds adds, “Through building a company on accountability, mutual respect and teamwork, we’ve seen our unlimited vacation day policy have tremendous results for our employees’ personal development and for productivity. Red Frog is more productive by giving unlimited vacation days.”

Attracting and retaining employees

If you want to attract the best and brightest, offering unlimited vacation time may just be the ticket. It sends the message that you have created a culture that is thinking outside the box, rewards hard work and trusts your employees. Many employees are attracted to companies that offer flexible schedules that allow them to balance their work with their lives.

Can this work for your business?

The answer depends on the nature of your business, its size and culture. As with any company policy, there are pros and cons, but the benefits of offering your employees unlimited vacation time and trusting them to take the time off they need, when they need it, may be the best thing you can for them, for you and your business.

Deb Neuman

About Deb Neuman

Deb thinks Maine is a great place to do business and loves telling the stories of Mainers proving that it can be done! An entrepreneur at heart, she enjoys helping others with the same drive to create and innovate!