What is an open vacation policy?

An open vacation policy, also known as an unlimited vacation policy, is a policy that gives employees the freedom to take as much paid vacation time as they want or need, as long as they get their work done.

What are the key components of an open vacation policy?

There are a few key components that make up a typical open vacation policy:

• No set number of vacation days – Employees are not restricted by a certain number of paid vacation days per year. There is no “use it or lose it” policy.
• Flexibility – Employees can take time off whenever they need to, as long as it works for their schedule and workload.
• Trust – The policy shows employees that management trusts them to manage their own time off and not abuse the policy.
• No tracking – With a traditional vacation policy, HR has to track days used. An open policy eliminates this administrative burden.
• Coverage when out – Employees are expected to make sure their work is covered when they are out on vacation.

What are the benefits of an open vacation policy?

There are many potential benefits to offering an open vacation policy:

• Increased productivity – By giving employees more flexibility and control over their time off, open vacation policies can reduce burnout and increase productivity.
• Better work-life balance – Employees can take time off when they really need it for personal reasons, improving their work-life balance.
• Higher morale and engagement – Open policies demonstrate trust and can make employees feel more valued and engaged.
• Enhanced recruitment and retention – Open vacation policies can give companies a competitive edge in attracting and retaining top talent.
• Cost savings – HR no longer has to spend as much time tracking vacation days for compliance purposes.

What are some potential drawbacks?

While open vacation policies have many benefits, there are also some potential drawbacks to consider:

• Coverage concerns – If not properly managed, employees being out whenever they want can lead to gaps in coverage.
• Perceived unfairness – If some employees take a lot more time off than others, it may cause tension.
• Culture shift – Moving to an open policy requires a culture of trust and accountability.
• Pushback – Some managers may be reluctant to give up control over staff vacation time.
• Abuse potential – A few employees may take advantage and are gone too frequently.

How do employees request time off under an open policy?

Employees typically follow a process like this to request vacation under an open policy:

1. Check the team calendar well in advance to identify coverage gaps
2. Formally request the time off in writing from their manager
3. Get approval and confirm that coverage is in place
4. Plan ahead to reassign work and notify stakeholders
5. Set up an out of office message with details on coverage
6. Enjoy the time off!

While employees have the flexibility to request when they want, it’s important they communicate in advance to allow proper planning.

How can companies ensure open policies are managed effectively?

To make open vacation successful, companies should consider these management best practices:

• Set clear guidelines – Provide clear criteria for requesting and gaining approval for time off.
• Plan coverage – Require teams to plan workload coverage for when team members are out.
• Monitor balances – Track time off at a high level to spot trends and ensure fairness.
• Review productivity – If output drops while time off rises, reassess for balance.
• Set guardrails – After a certain number of days off, require manager approval.
• Communicate – Reinforce the policy through employee handbooks, training, and messaging.

Proper oversight and communication ensures the policy is working for both employees and the business.

How much time off is typical under open vacation policies?

The amount of time off taken under open vacation policies can vary significantly across companies and industries. Here are some examples of average days off:

The averages can range from 2-3 weeks off to over 4 weeks off annually. It depends on the company culture and workforce demographics. Younger workers may take more time.

How is open vacation different from unlimited vacation?

Open vacation and unlimited vacation are very similar policies with only subtle differences:

• Unlimited – True unlimited policies impose no restrictions on days off.
• Open – Open policies provide looser limits like requiring approval after a set threshold.
• Perception – Unlimited has a connotation of “take as much as you want.”
• Tracking – Unlimited policies involve no vacation tracking at all.
• Culture – Unlimited requires an extremely high-trust culture.

In practice, most companies follow an open policy with some guardrails rather than a pure unlimited approach.

Are open vacation policies becoming more common?

Open vacation policies have been growing in popularity over the past decade, especially among tech companies and startups. Here are some statistics:

• Only 1-2% of companies had open policies in the early 2010s
• That number grew to over 10% by 2020
• Over 30% of companies now say they plan to adopt open policies
• Over 50% of millennial workers say access to open vacation would increase loyalty

As millennials increasingly dominate the workforce, open vacation policies are likely to continue trending upwards. They align well with millennial preferences.

What are examples of companies with open vacation policies?

Some prominent examples of major companies with open vacation policies include:

• Netflix – Perhaps the most well known unlimited policy. Employees can take what they feel they need.
• LinkedIn – Employees can take off whenever as long as it works for their team.
• Evernote – Evernote shuts down its offices for a week in July to promote work-life balance.
• Oracle – Switched to open vacation in 2016 to align with its focus on employee wellbeing.
• General Electric – GE moved from strict vacation tracking to an open, honor-based policy.

Other examples span startups, tech giants, financial firms, and consumer product companies. The concept applies across many industries.

Conclusion

Open vacation policies provide workers more flexibility and autonomy over taking time off. They demonstrate trust and support work-life balance. However, open policies require proper oversight and a culture shift for managers. As millennials enter leadership roles, open vacation policies are likely to be embraced by a growing number of companies. Though not without challenges, their benefits make building an open vacation culture an increasingly popular human resources strategy.