#14 - Beyond the Mirage: The Unlimited Holiday Fallacy

Meet Carlos, a talented software engineer in his late 20s, on the cusp of landing his dream job at a buzzing tech startup. The company was not only promising but also boasted an amazing work culture. The cherry on top of the cake was the unlimited holiday perk they were offering.

Carlos was beyond ecstatic, as he had always dreamt of travelling the world, spending quality time with family, and exploring new hobbies while still making a living - who wouldn't? As the interview process progressed, Carlos couldn't help but feel a growing sense of anticipation and excitement about the seemingly perfect opportunity that lay ahead.

By the end of the week, on a sunny Friday afternoon, the phone rang. Carlos glanced at the screen in anticipation and saw the name of the HR representative in charge of the recruitment process. This was the moment! As he answered the call, he heard the man's voice, "Hey Carlos... As you know, we had a bunch of extremely qualified applicants..." Disappointment coursed through the engineer's veins... he hadn't made it. "But you were the chosen one! Congratulations!" Carlos couldn't believe it. "Wait, what? You mean... I got the job?" The young man was a mix of surprise, relief, and delight! As he hung up the phone, he couldn't help but start imagining all the things he would do that had been postponed for so long. He felt like he had won the lottery.

The day came to sign the contract, and Carlos was already eagerly planning his future vacations while daydreaming about groundbreaking projects he'd be working on. However, as he settled into his new role, Carlos soon discovered that his dreams of unlimited time off were, in fact, a mirage in the company's job advertisement. Yes, there was a perk of "unlimited" holidays, but the work had to be done, and that was the priority. As the company raised money, round after round, the projects kept coming, and with the crazy demand for developers in the market, there just weren't enough hands for everything that had to be done. After a year of almost no weekends - let alone holidays - the creeping sense of disillusionment had already cast a dark shadow over his once-bright enthusiasm. Our young engineer was on the lookout for a job... again!

In the last few years, the concept of unlimited holiday perks has re-gained momentum in the corporate world, particularly among startups looking to attract top talent. We, at RUPEAL Group, tried implementing the policy more than 10 years ago, long before it became a trendy perk. However, it didn't work out as expected. Some candidates joined us with the expectation of not having to work much - go figure - and we eventually had to ditch the idea as it was, in fact, a lie!

To begin with, we realized it was impossible to have truly unlimited holidays and remain productive. We now can see how absurdly obvious this is. Productivity requires work, and if employees are constantly on holiday, they're not producing. Also, when a company promises unlimited time off but cannot allow employees to actually take unlimited leave, frustration is inevitable. Furthermore, when some employees managed to take more holidays than others, it created an atmosphere of resentment and jealousy. This perk was in fact doing more harm than good. Nonetheless, the "benefit" seems to be resurfacing in the job market.

The unlimited holiday perk is often a shiny bait used by startups to lure candidates, only for employees to find that it's not as advertised. This can lead to disappointment, a sense of being misled, and even a negative impact on employee morale.

I can draw several other reasons why this perk can be problematic:

1. The fear of appearing lazy: When there is no clear policy on how much time off is acceptable, employees may be hesitant to take extended leave, worried about the perception of their commitment to work.
2. Inequality in application: Some employees may have more flexibility in their roles to take time off, while others, due to their job responsibilities, may find it challenging to enjoy the same level of freedom.
3. Impact on teamwork: If an employee is frequently absent, their colleagues may have to pick up the slack, causing resentment and friction within the team.
4. Pressure to perform: Employees who take advantage of the unlimited holiday perk may feel the need to work harder and longer hours when they are working, leading to burnout.

While offering unlimited holidays might not be feasible, there are alternative ways to reward employees with extra time off, ensuring a better work-life balance without compromising productivity or workplace harmony. I don't necessarily recommend them all or for every company - as there are contexts where it wouldn't work - but I think these are better than using the term "Unlimited" which is completely misleading.

1. Performance-based leave: This can be an excellent motivator, encouraging employees to achieve their goals in order to earn extra vacation time. A clear and transparent performance evaluation system will help ensure that this perk is fairly distributed.
2. Flexible work hours: Allowing employees to work flexible hours or adopt a compressed workweek can lead to increased job satisfaction and a better work-life balance. For instance, an employee might choose to work longer hours Monday through Thursday, taking Fridays off. This approach offers employees the freedom to manage their time more effectively, catering to their personal and professional needs, as long as goals and deadlines are met.
3. Paid sabbaticals: Offering paid sabbaticals for long-term employees is another way to reward loyalty and dedication. A sabbatical provides employees with an extended break from work, allowing them to pursue personal interests, education, or volunteer work. This can lead to increased job satisfaction, personal growth, and a recharged employee returning to the workplace with fresh ideas and perspectives.
4. Time off for special occasions: Offering additional paid leave for events such as weddings, the birth or adoption of a child, or milestone anniversaries can help employees feel valued and cared for by the organization.
5. Unlimited holiday policy with clear guidelines: Wait what? Isn't this whole article about how misleading the term "Unlimited" is? Yes, it is, and if a company still wants to offer unlimited holidays, it should set clear guidelines and expectations to avoid confusion and potential misuse. This may include establishing a minimum and maximum number of days off, and ensuring that employees understand the importance of balancing time off with their work responsibilities. Just don't call it "Unlimited" because it's a lie!

By exploring these alternatives, companies can create a more flexible and supportive work environment that values employee well-being while maintaining productivity and fostering a positive workplace culture.

Perhaps, in a distant future when AI has taken over most jobs, we might all enjoy a truly unlimited holiday. But for now, it remains a compelling yet flawed concept that raises questions about the balance between productivity, employee well-being, and the true meaning of work-life harmony.

As a candidate, when you come across the unlimited holiday perk in a job ad, it's wise to dig deeper and ask for clarification on the company's policy before signing on the dotted line. By doing so, you can ensure that you're stepping into a role that genuinely aligns with your expectations and enables a healthy work-life balance.

In the end, the story of Carlos serves as a reminder that while the concept of unlimited holidays can be enticing, it also warrants careful consideration and critical thought, both for individuals and organizations alike.

Thank you for reading this edition of "Thoughts of a Simple Man". If you enjoyed it, please consider subscribing, commenting and sharing with whoever needs to read it. I always appreciate feedback and ideas for future topics. If you have any thoughts or just want to say "Hi", please do so. I welcome the opportunity to engage in meaningful dialogue and discussion.