Can Unlimited Vacation Be Good For Productivity?

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Since the earliest days of unlimited PTO policies, supporters have argued they are more likely to help productivity than hurt it. A new analysis of data supports that claim.

 

In a report titled 2017HR Mythbusters 2017, developers of the HR technology platform Namely analyze their data from 2016 to test the notion that unlimited vacation does more good than harm.

 

The result: employees with unlimited time took an average of 13 days off, compared to 15 days for employees with a traditional allowance.

“The data prove that on average employees with unlimited PTO plans do in fact take less time off than employees with a set amount of vacation days,” the report authors write. “This calls for a change in the way HR teams and managers communicate about time off.”

 

In a related finding, the Namely analysis compared vacation-time usage with job performance. The finding: “High performers tended to take an average of 19 vacation days per year, while individuals who scored lower took only 14.”

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