Back from Vacations - some thoughts

The day I learned about the significant difference in PTO (Paid Time Off) between the US and the rest of the world, I gave myself a pep talk about how fortunate we are. It might sound trivial, but in Europe, it’s unimaginable not to have our guaranteed 22+ vacation days each year—excluding sick leave, maternity/paternity leave, and other forms of absence, which don’t affect our legally mandated PTO.

I’m not trying to diminish the US experience, but this contrast highlights an important issue for companies focused solely on delivering projects "on time, on budget," and other quantifiable metrics, often at the expense of employee well-being and quality—both in terms of work-life balance and the products or services they provide.

As companies grow, so does the need to monitor teams, productivity, and output. This is a natural part of scaling an organization, where legal and financial constraints also come into play. A company may start as a small team—perhaps even a one-person operation—but as it expands, it inevitably moves beyond casual Google Docs business plans into complex structures with hundreds or even thousands of employees.

Tools and processes are implemented to track work, finances, and resources. This is all standard practice.

Here’s where things tend to diverge.

Historically, most companies have been driven by KPIs (Key Performance Indicators). KPIs are treated as sacrosanct, providing valuable insights into a company’s progress at any given moment. This made sense when businesses prioritized quantity over quality—especially when consumers had limited choices.

However, as markets matured and customers became more discerning, quality became a critical differentiator. But how do we measure quality? Which KPI captures that? Tools like NPS (Net Promoter Score) often lack context and provide limited feedback.

In the digital age, and now in the age of information overload, customer feedback is instant and spreads like wildfire. A single bad review can be enough to cripple a business. Listening to your customers isn’t just a best practice—it’s vital for survival.

At the same time, the nature of work has evolved. In the early 20th century, a typical worker was paid to perform repetitive tasks—clocking in, working long shifts, and clocking out without much input. Creativity wasn’t part of the job.

After World War II, however, with the rise of STEM professions, creativity surged. Employees began voicing their ideas, and innovation started coming from all levels of the organization. By the late 1980s, software and tech companies were transforming the corporate world. Today, nearly every business relies on IT infrastructure, whether it's in finance, healthcare, or automotive industries.

Who makes all of this work? The employees. And in many cases, companies become dependent on a few key employees who hold critical knowledge about code or infrastructure—sometimes to the point where these employees essentially "own" the intellectual property.

Companies like Google became famous for creating employee-friendly environments, with perks like playgrounds, pet-friendly offices, and free meals. These practices have since become mainstream. However, the most important factor—the one that truly determines whether people stay with a company or even move countries—is how employees are treated and supported.

Companies that understand the importance of protecting their employees and providing a structure that allows them to spend time with their families, rest, and recharge are the ones that thrive. These companies innovate and grow because they recognize that a healthy, happy workforce is their greatest asset.

Unfortunately, many companies—both in the US and elsewhere—remain fixated on KPIs, often at the expense of employee well-being. They chase numbers, neglecting to provide the necessary support systems for their teams.

While the global economy may limit employment choices in some sectors, tech and IT roles are still in high demand, which gives workers more mobility. Remote work and digital nomadism are on the rise, and many are choosing to relocate. In the past two years alone, I’ve seen a surge of people from the US, Canada, and other countries moving to Portugal, and most of them are loving it here.

In conclusion, if you want to grow, don’t fixate on KPIs. At least, don’t look at KPIs alone. Focus on your people. And to companies in the US (and elsewhere)—PTO matters. It leads to happier, healthier employees. And happy, healthy employees are more productive.

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