HR Management & Compliance

Implementing an Unlimited Vacation Policy—It’s Tricky … But It Can Be Managed

In yesterday’s Advisor, we looked at some of the pros and cons of an unusual vacation policy—one that provides unlimited time off to employees. Today, we present a few more potential pitfalls of such a policy, but also some suggestions on how to manage the problems to make the policy successful.

Here are a few more cons (including potential legal complications) of an unlimited vacation policy:

  • Employees may fear that they’re risking their job if they take too much time away—and to make matters worse, what constitutes “too much” is not defined.
  • Unlimited vacations still require approvals, which can lead to unfairness in implementation. This can occur when different managers use different means for determining when vacation time can be approved. It can be tough to strike a balance and implement it fairly and consistently.
  • There could also be legal issues associated with unlimited vacation:
    • It could prove complicated for an employer when an employee also has a medical condition that would necessitate unpaid time off under the FMLA.
    • Unintentional discrimination could be a consequence if there is less company oversight and more managerial discretion in how often employees can take time off.
    • It becomes more important to ensure employees are correctly classified under the FLSA since time off records may be more relaxed.


Revisiting your recruiting strategy and want to know best practices? Start on Tuesday, April 21, 2015, with a new interactive webinar, Recruiting and Technology: What’s Happening in the Real World? Learn More


Managing the Cons of Unlimited Vacation Policies

Naturally, many of these cons can be managed through thoughtful implementation. It’s important to consider the ramifications up-front and create a policy that addresses some of the bigger concerns in advance. For example:

  • There can be a clear way to apply for vacation days and show that projects are up to date. Just because the time is unlimited does not mean that there are no parameters or boundaries!
  • Employers can still track vacation taken, even if it’s not through a formal process. Unlimited time off does not have to mean that there is no accountability at any level. Employers must be able to ensure the policy is being implemented fairly and consistently—which requires tracking.
  • Consider having a provision of the policy that requires a minimum number of days off each year.

Has your organization considered an unlimited vacation policy? What other impediments do you see to a successful implementation?

Many prospective recruits may be attracted by an unlimited vacation policy…but it’s just one small thing to consider in your overall recruiting strategy. Things are changing fast; technology is taking over, social media is on the rise, and even traditional methods are constantly evolving. What’s going on with recruiting in this dynamic business climate? Fortunately, there’s timely help in the form of BLR’s new webinar—Recruiting and Technology: What’s Happening in the Real World? In just 30 minutes, on Tuesday, April 21, 2015, you’ll learn everything you need to know about our latest research into what’s happening in the ever-evolving field of recruiting.

Register today for this interactive webinar.


Recruiting is the backbone of a successful organization, and it’s challenging in 2015. Join us Tuesday, April 21, 2015, for a new interactive webinar, Recruiting and Technology: What’s Happening in the Real World? Register Now


By participating in this interactive webinar, you’ll learn:

  • What methods are being used to recruit
  • What’s negotiable
  • What jobs are filled online
  • What’s the cost-per-hire for online recruiting
  • What are the pros and cons of online recruiting
  • Retention—What actions are organizations taking, and which are most effective
  • What are typical results for:
    • Cost per Hire
    • Time to Fill in Days for Various Positions.
    • Quality of Hire
  • How are recruiters using social media?
  • Who is considering a “Zappos” approach?
  • What’s the role of the company website and recruiting pages?
  • And much more!

Register now for this event risk-free.

Tuesday, April 21, 2015
2:00 p.m. to 2:30 p.m. (Eastern)
1:00 p.m. to 1:30 p.m. (Central)
12:00 p.m. to 12:30 p.m. (Mountain)
11:00 a.m. to 11:30 p.m. (Pacific)

Leave a Reply

Your email address will not be published. Required fields are marked *