- SCU Home Page
- About SCU
- On Campus
- News & Info
Business Ethics in the News
UNLIMITED VACATION: Best Practice or Cost Cutting Measure?
Thursday, Feb. 20, 2014
The average American receives 2 weeks of paid vacation, but a new trend among Silicon Valley tech firms goes against the norm by offering employees unlimited vacation time. Among the big names to implement the policy are Netflix, Best Buy, and Evernote, in addition to a number of startups. Employers adopt the policy with the hope of keeping productivity up in the long run, as well as a perk to recruit top talent. Employers also tout the policy as a way of “treating their employees like adults,” and building a culture of both freedom and responsibility. But there’s also a silver lining for employers — with unlimited vacation policies, days off are not accrued. This means that when a worker leaves the company, the employer no longer has to provide them with a lump sum for unused vacation time. Furthermore, at many fast paced firms, there is never a “good time” to take vacation, and without clear guidelines from employers, it may result in even less vacation time taken. Are unlimited vacation policies in the best interest of the employees or an underhanded cost cutting measure?
Patrick: Unlimited vacation policies come down entirely to implementation. When coupled with a constant and extreme pressure to produce results, these policies put employees between a rock and a hard place — and at the end of the day, the company saves money at their expense. To be done right, unlimited vacation policies must be paired with a corporate culture that actually lives by responsibility and freedom, along with a clear message from management that employees are expected to take vacation time. Evernote addresses this by offering a $1,000 stipend, if and only if employees take a one-week vacation: those who don’t miss out entirely.
A special thanks to Frances Mann-Craik for suggesting the topic!
A Framework for Thinking Ethically (Markkula Center)
NEXT STORY: Trucost Announces 2014 Natural Capital Leaders