Unlimited paid vacations: too good to be true?

Having unlimited paid vacations sounds like every employee’s dream. However, research and commentary from workplace experts suggest that unlimited vacations are often, ironically, limiting.

Nevertheless, it’s a practice that a lot of companies, particularly in the tech sectors, are starting to implement. Microsoft and Goldman Sachs are part of that growing list, according to Insider.

But the pressure to not appear greedy or lazy can keep employees from cashing in this benefit, according to a review by Namely, an HR-software company. For many workers, it can feel like borrowing time, rather than taking time they are owed.

In fact, the HR consultant found that employees in the United States end up taking fewer vacation days (13 per year) than a worker with the canonical vacation format (15 days a year).

According to the aforementioned company, it is the worker himself who, since they do not have a fixed number of vacation days, ends up putting pressure on themselves  not to take them because there are always things to do at work.

Geoffrey James, a contributing editor for Inc. and author of several business books, called unlimited paid time off "the scam of the century."

“While it sounds like a perk ("Wow! I can take a whole month off!"), it instead makes taking vacation subject to the same psychological pressure that keeps people working ridiculously long hours”, James writes, saying that a right then gets turned into an option that must be negotiated.

James also points out that this apparent gain in free time actually leads to greater competition between workers to see who takes less vacation.

Employees might reach the  conclusion that if there is a bonus or promotion on the table, it will go to the person who takes the least vacation days, for example.

Taking vacations while your co-workers don’t would probably earn your manager’s displeasure because you’re not being a “team-player”, which is the same logic behind their demand for 100 hour work week, says James.

The BBC interviewed several employees that work under the unlimited vacation policy and they concluded that this vacation format generates "anxiety, stress and confusion among employees."

Without bosses who encourage employees to take time off and do not give any indication of what would be appropriate, the worker always has a downward trend.

According to a 'Thrillist' article, the factor of personal opinion also influences, both from colleagues and bosses, and a possible signaling of those who take too many vacations or those who take them at times of greater workload.

Is the unlimited vacation format then a scam? Many think so. However, there’s experts who say that it can work when the company’s environment is right.

'Forbes' points out that a well-organized company, with firm leadership, a business culture and a good organization among colleagues, is the perfect ecosystem for unlimited vacations.

A working environment in which everyone understands their role, as well as the needs and roles of co-workers, all guided by those responsible, can lead to an ideal operation of this vacation system, Forbes adds.