Why more and more job seekers are saying “no” to unlimited paid vacation

According to a recent report from Revelio Labs, fewer employers advertise unlimited paid vacation in their job postings than they did a few years ago. While such policies used to be a sign of a more flexible company culture, the lack of clarity about how much vacation you actually get makes them less attractive to job seekers today.

Unlimited paid vacation may seem quite generous, but those who have it are often hesitant to request vacation when there are no clear standards or guidelines. Such policies are partly responsible for trends like this summer's “silent vacation,” in which workers take a trip without officially requesting vacation or informing their manager. Instead, they work remotely from their travel location, then log off and enjoy their vacation.

Workplace experts say there is no perfect, one-size-fits-all vacation policy. Rather, it depends on a company's overall vacation culture, how vacation requests are handled and how comfortable employees feel about taking the time off they need.

“If it's not implemented well, it can be very ambiguous. A lot of people come into a company not knowing what to expect from this policy,” said Jin Yan, senior economist at Revelio Labs.

Seventy-eight percent of workers with PTO agreements of any kind said they don't take the maximum vacation time allowed, according to a Harris Poll survey of over 1,000 working U.S. adults conducted in April. The survey also found that over half of respondents think unlimited PTO means 20 days a month, even though those who have it take less.

Another major problem with unlimited PTO policies is the perceived lack of fairness. The responsibility for approving requests—and ensuring that a team isn't overloaded by someone's absence—falls on managers. Depending on their relationship with their manager, they may request more or less time off. And managers who handle requests poorly could create jealousy or overwork among some team members.

If unlimited paid leave doesn't work for a company, it's likely because of the way it's handled, says Catilin Collins, organizational psychologist and program strategy director at Betterworks. “For unlimited paid leave to be effective, managers and leaders need to be role models. They need to take the paid leave and encourage employees to do the same,” Collins said.

“Employees work better when they can determine their own work-life balance, their own time, and know that they can take time off when they need to without fear of reprisal.”

Catilin Collins, organizational psychologist and program strategy director at Betterworks.

“The organization also needs to set expectations so that the policy is not abused but used for its intended purpose.” Some guardrails could be rules like: Not all members of the same team can be absent in the same week; or employees can't take 10 consecutive days off more than once a year, she said.

“Employees work better when they have control over their work-life balance and their time, and know they can take time off when they need it without fear of reprisal. Good policies and employee support are key to the program's success.”

Yet many employers struggle to get this right. Companies with unlimited paid vacation performed worse in recruiting on work-life balance, company culture, values ​​and leadership, the Revelio report found. And job postings that mention unlimited paid vacation take longer, on average, to fill than those without unlimited paid vacation — about 41 days compared to 34.

While unlimited vacation policies are typically discussed during the hiring process, specific details about how to make requests and what practices the company follows are often not addressed, Yan says.

For companies that implement policies or general norms, “I think that expectation should be set and communicated to employees right when they join the company. But I think we often hear stories about unlimited PTO practices – and I think employers are missing the boat here.”