Currently, King is experiencing some difficulties associated with a decline in sales and unrest among employees. The company is forced to stop the strategy of expansion and obtaining high profits and instead switch to a cost containment policy and staff reduction. The HR department has faced many problems that need to be solved for the further effective functioning of the company, for example, distortion of sales figures, the need to save money, and strained relations between some employees. It can be difficult to dismiss an employee correctly to avoid further confrontation (Green, Ryan & Levy, 2017). Nowadays, the unlimited vacation policy is quite popular, which is used by many firms and companies. Perhaps the introduction of complete vacations could help King solve some personnel problems that affect the overall productivity of the entire company.
Unlimited vacation is one of the most demanded advantages of companies around the world. Many organizations offer indefinite paid leave to boost team spirit, increase productivity, and attract the best talent. In turn, employees are expected to work with maximum efficiency at work. The unlimited leave policy allows employees to take time off whenever they want, as long as they do their job. This approach can increase employee engagement and prevent burnout, which will lead to increased productivity and better results in the workplace.
Alongside a generous healthcare insurance plan, employers offer all sorts of benefits to engage and keep the best specialists. Unlimited paid leave is especially popular in the modern workplace. Netflix, HubSpot, Glassdoor, Dropbox, and other popular brands were among the first to implement this policy. Advocates argue that unlimited leave can increase employee engagement, reduce staff turnover, and improve work-life balance.
The concept of unlimited vacation is relatively simple: employees who are offered this bonus can take as many vacation days as they want while they do their job. Weekends are not accrued, so employers do not need to pay for vacation when someone leaves the organization. On the other hand, if an employee takes up too much free time, it is impossible to cancel their employment agreement due to pitiful attendance. From a legal point of view, any company can implement a policy of an unlimited number of vacations. In most states, paid leave is not a requirement of the law. Instead, it is usually offered by startups, non-profit, and technology companies. Some employers provide this advantage to compensate for an imperfect salary.
This concept originated in the mid-90s when IBM and technology startups began to allow employees to take as much free time as needed. Today, an increasing number of companies, including Virgin Group, Netflix, General Electric, and GrubHub, offer an unlimited vacation for employees. Netflix, for example, does not track working hours, sick days, or vacation days, as with this approach, employees can recharge their batteries and avoid burnout. Unlimited vacations can increase the productivity of King employees, reduce workplace stress and increase employee happiness – after all, it’s no secret that stress affects productivity and psychological well-being (Reilly, 2012). Flexible working hours will allow employees of this company to devote more time to what they like and thus become more involved in the workflow.
For King, as a small business that has to compete with major industry players, providing unlimited vacation time can easily attract the best talent and reduce staff turnover. Organizations with a total number of paid vacations do not need to pay unused vacation days when an employee is dismissed. In addition, unlimited vacation is an indicator of a relaxed and friendly organizational culture. For many workers, it is essential to have a job that allows them to lead an everyday life and maintain a balance between work and personal life (CBS This Morning, 2015). For such employees, an unlimited vacation will become a strong motivator, raise the team’s morale, and give an impetus to the workflow. Employees will strive to complete tasks faster and better to be able to take a vacation.
The policy of unlimited vacations can benefit the business, but it can also have unpleasant consequences if implemented incorrectly. In general, the company’s culture has a significant influence on how employees use this privilege (Mishra et al., 2012). If they are forced to work around the clock, they may postpone or cancel their vacation plans. A positive company culture based on trust and responsibility is crucial for any business offering unlimited vacations. If the management of King decides to offer a total number of vacation days, it is necessary to draw up a document that will answer any questions that employees may have. It is required to tell employees how to organize this free time and how its management plans to hold them accountable.
The head of the company needs to make it clear that King does not offer a working vacation. Instead, management expects employees to recharge to perform as well as possible when they get back to work. As a small business, King may not be able to implement unlimited vacation for its entire staff. For example, customer support may suffer if a company support representative decides to take a month off (FitSmallBusiness, 2013). One way to solve this problem is to implement a hybrid policy (Gollan & Lewin, 2013). It could mean that the company will allow employees to take time off whenever they want if they return to work within 10 or 15 days. Alternatively, King management can offer unlimited vacation time as a reward for highly effective employees.
Thus, it is advisable to think about implementing the policy of unlimited vacations at King, as this can significantly improve the atmosphere in the team and the quality of work of employees. The policy of indefinite leave will allow employees to perform work more quickly and efficiently, reduce the number of conflicts in the workplace, which will help to improve King’s state of affairs.
References
CBS This Morning. (2015). Work vs. vacation: From unlimited time to no time off.
FitSmallBusiness (2013). Employee compensation—how to design the right plan.
Gollan, P. J., & Lewin, D. (2013). Employee representation in non-union firms: An overview. Industrial Relations, 52(S1), 173-193.
Green, N., Ryan, K., & Levy, M. (2017). The correct way to terminate an employee.
Mishra, R. K., Singh, P., & Sarkar, S. (2012). Cross cultural dimension of compensation management: Global perspectives. Journal of Strategic Human Resource Management, 1(2), 63-71.
Reilly, P. (2012). HR’s future in a global setting. Human Resource Management International Digest, 20(3), 3-5.