Unlimited Annual Leave?
Running any business is complex, and as a startup, costs are tight, so offering attractive benefits can be difficult, which is where forward and out-of-the-box thinking is required. An unlimited annual leave policy can benefit the company by reducing staff turnover and improving employee morale. It can be a great way to encourage employees to take time off for vacation and relaxation. Unlimited holiday policies remain rare, with only 1% of UK jobs on job sites offering it. However, it is crucial to ensure the team is aware not to abuse the system, that it runs on a trust basis, and that management is prepared to handle any abuse. With the above in mind, and after some research, I decided to implement this fairly unorthodox approach, and I couldn't be happier with the outcome.?
Benefits to unlimited annual leave:
Issues with unlimited annual leave:
Eliminate the stress of annual leave
We introduced this policy from the moment of inception of our startup. Our team has grown to 4, and regardless of pro-rata working hours, this policy applies to all staff. Why?
Wherever I have previously worked, the issue of 'I have to save my annual leave' arises. Saving annual leave for holidays, the kids' time off school, and occasions and events. On sunny days, staff sat begrudging their time behind their desks rather than enjoying the weather. Occasions where staff call in sick when they just need a day off because they are not in the right frame of mind to work, or perhaps because their dependants need them at home, or to take a day for Christmas shopping. This usually leads to management constantly second-guessing the 'call in sick', even when the reasons were legitimate. Team members have quiet conversations and giggle that they know such and such is just having a day off.
Our implementation of this policy combats all of the above. It gives staff the flexibility they deserve. Providing that there are no calls or meetings scheduled or impacted deadlines, staff are welcome to have a day off at pretty much immediate notice. Taking an extra day off after returning from a holiday, or because sometimes our flights don't get in until late, may be delayed, or returning home more tired than expected, having an additional day to unpack, or to prepare to return to work, can be invaluable. My team don't have to worry about taking a mental health day to have some rest and relaxation in whatever format helps them. We have developed a high degree of trust within the team, which works both ways and can only work if both management and staff are aligned in their thinking.
I am proud and delighted that my team are enthusiastic and productive during their work hours. There is no issue with a lack of productivity or positive attitude. There is no suspicion of illegitimate days off sick. The prospect of having annual leave is undoubtedly beneficial.
We must remember that all team members must have time for life outside of work.?
Trust builds
From a management perspective, providing annual leave is one thing, but adhering to and managing the policy is another. This policy's exceptional benefit is the trust across the entire team. At times it may feel inconvenient to have a team member want a day off at short notice or have a slightly extended period off than would be traditionally taken. However, this pales in significance when the team is happy and focused at work, who never object to the odd request to work outside their regular hours or assist with additional work duties outside their job description. By offering this flexible policy, the team are equally flexible in return which again is a huge asset. The requests from either side are rarely, if never, unreasonable.?
If you trust the people you work with to do the job in hand, they actually do.
Staff Testimony
"You can take time off as much as you need to. Obviously not taking advantage, but it's very flexible hence why I never ask for the time back when we work on weekends or late evenings."?
How much time has actually been taken
A common concern is that staff abuse this policy and takes innumerable days off, leaving the business with disturbed workflows and reduced work completed. I can attest to the exact opposite. To date, based on pro-rata days, each of our employees has, at most, taken the equivalent of the traditional 25 days of annual leave, plus 8 bank holidays. There have been no annual leave requests refused. There has been no excessive use of the policy. However, most importantly, each team member has had the burden of stress regarding annual leave removed.
领英推荐
Research shows that:
1. A study by Oxford Economics found that unlimited annual leave increases employee productivity by 6%.
2. A study by CareerBuilder found that unlimited annual leave decreases staff turnover rates by 66%.
3. According to the Society for Human Resource Management, 78% of employees prefer unlimited annual leave over a traditional vacation policy.
Is it for you?
This policy may not work for all. Some industries may struggle to implement this for valid reasons and are perfectly within their rights to disregard this approach. There are several justifiable reasons, but it is mainly down to 2 reasons why this type of process is not implemented - a more traditional style of management or a lack of trust between staff and management. We have all worked, and many still work, in environments where bums-in-seats means work is being done, clock watching is commonplace, and productivity is measured by time spent at a desk behind a screen. This method of management is nothing but detrimental to staff morale and the productivity it is supposed to encourage.
To somewhat counteract the argument, some may feel a lack of psychological ownership of having annual leave days. If you are entitled to 25 days of annual leave, then subconsciously, you're motivated to take them; they belong to you, and you value them more highly. A potential solution is to set a standard minimum vacation time, with the flexibility to take more as needed.
Is it for your industry?
Industries generally able to offer unlimited annual leave:
Industries generally unable to offer unlimited annual leave:
Tools to track annual leave
We track our annual leave using Google Sheets. Annual leave is requested, approved, added to staff calendars, and updated on the relevant document. This task is not a time-consuming task.
Our results are clear; now what will you do?
Our case study makes it clear that the unlimited annual leave policy has a range of benefits. Staff are obviously much more likely to stick around when they are happy and productive. Implementing this policy has seen our employees be happy, productive, and more focused and motivated at work. We want to be known for implementing progressive working practices but retaining the traditional hard-working attitude, and this policy has proved to tick both criteria. This policy is definitely a success story for us, with trust established on both sides of the policy.
If you're on the fence about whether or not to implement an unlimited annual leave policy in your business, hopefully, this has helped provide some first-hand experience and insight.