Commentary: An emerging company policy known as unlimited vacation or unlimited PTO (paid time-off) is gaining headlines again. The Virgin Group, led by Sir Richard Branson, recently announced that they are running a pilot program of unlimited vacation with the hope of implementing it organization-wide. What is unlimited vacation? Why are companies implementing it? And what are its pros and cons?
To start, unlimited vacation is not a free pass that allows employees to take as much vacation time as they like, nor is it some sneaky way for managers to discourage employees from taking any time off at all. It is a time off strategy that can benefit recruiting, reflect culture and ease administrative burdens. However, if its not properly implemented and managed, it can lead to more issues than it aims to solve.
