"That's easy, of course they should," responds every worker everywhere. Unlimited vacation time sounds lovely in theory from the worker perspective but probably not as great from the employer perspective. After all, there's some moral hazard there: if you can take unlimited vacation time, then wouldn't you spend a lot more time out of work than you do now? Wouldn't productivity decline and profits plummet?
Katie Morell writing for for American Express Open Forum, provides several examples of firms that have successfully implemented such a policy. Here is one tech company owner, Blake Shipley explaining:
In practice, Shipley claims most CoupSmart employees end up taking around two weeks vacation anyway, but like knowing there is an option for more.
"One of our employees is taking three weeks off this year because he has a fiancé in Paris," he says. "He ends up mixing vacation with work and gets everything done on time, so it isn't a problem."
How does this model benefit the business owner?
"It's all about incentives," Shipley says. "I've found that when you give people the right incentive, they find better and more efficient ways to do their work. It gets people to think about what they need to do to fill their personal desires."
Of course, there are situations where unlimited time-off arrangements like this simply wouldn't work. The article points out such examples, like in manufacturing where workers must be present as an inescapable characteristic of their job.