UNLIMITED HOLIDAYS, GENIUS HR PERK OR HR HORROR STORY?
New company policy: Your employees can take as much holiday as you like, no counting the days, no working out when there’s a bank holiday to maximise the benefit, no questions asked, just them and a cocktail on a beach in Bali, for as long as they like.
Living the dream. And you are now the best boss ever. Sounds perfect! But is the promise better than the reality?
Let’s be positive first. Here’s why an unlimited holiday policy can be a winner
It demonstrates trust
A policy like this could be misused, but by the very fact you’re willing to have one, you’re saying to your people, we trust you, you’re adults, and you can manage your own workload and wellbeing.
It supports hiring and retention
Whether you’re looking to hire new talent or keep what you already have, a policy like this makes you stand out as an employer; it is still a rarity and could be the point of difference between you and another employer for your next hire.
No more ‘holiday’ burnout
Whether it’s the person using up all of their holiday at once and having none for months, or the person not using enough and having the mad scramble at the end of the year, resulting in half of December out of the office. Unlimited removes pressure and supports regular breaks.
What are the downsides?
People might take less leave, not more
Without a benchmark, some employees will end up taking less time off, they may have concerns about looking lazy or underperformance, which can actually lead to presenteeism - not the desired effect of an unlimited holidays policy.
Inconsistency
Whilst one team might utilise the policy really well, another might not encourage its use so much, this can lead to inconsistency across the workplace and whilst it is ‘policy’ so every department ‘should’ be doing the same thing, the lack of clarity on ‘how much holiday’ can create confusion, when everyone’s got 30 days plus bank holidays things are a lot clearer.
Blurred Boundaries
With unlimited holidays, there’s a blurred line between ‘on and off’; employees might feel they should be ‘on’ even during their time off. Without a formal structure, holiday and rest can become something people feel they need to earn rather than a right they can confidently exercise.
So, how can you make it work?
Set a minimum amount of holiday to be taken: Make it clear that this is the minimum requirement people must take and ensure you track it.
Use the policy yourself: Take regular, visible breaks without apology. Where you lead, teams will follow
Provide Structure: You still need to manage how leave is requested and how workload and staffing is managed. It is ‘unlimited leave’, not ‘disappear on holiday whenever you fancy it’
Do we think it’s a good idea?
Actually, yes, every workplace is different, and for some it just won’t work, but if you’re in a position to offer this type of policy, then it can be a game-changer for your team. Just remember it’s not about the number of days but the flexibility, balance and freedom it creates for everyone.