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Unlimited vacation time increases productivity?

This is really interesting.

Michael Mahoney, vice president of Consumer Marketing and seven-year veteran of GoHealthInsurance.com, says it actually was a deciding factor when he took the job. “I think it really helps instill in new employees the same values we had during the first years at our company," he says. Mahoney contends employees schedule vacation more strategically based on their workload. “When you consider when you can best take vacation as opposed to when you must, you end up able to take time off without affecting performance.”

Which often means people are actually on the clock more than ever. Shah admits that he works from home “a lot,” often putting in odd hours: “Until about 2 a.m. every night, and just about every weekend.” Fitton, founder of the Twitter app store Oneforty, which was acquired by Hubspot, was actually using a day off for emergency childcare during this interview–hardly a day at the beach.

Likewise, Mahoney says, “I’m working harder than ever, but I probably will take a few more days off this year,” though some of his colleagues have taken weeks off to go overseas. While Rosenblatt has taken “off” over a month, she says, “I always feel pressure to work even harder when I get back, even if there isn’t more work.”

Worker bees may be buzzing happily, but eventually everyone needs a real break. That’s why the 17-year-old Motley Fool, a multimedia financial-services company, established “The Fool’s Errand” five years ago. Spokesperson Alison Southwick says it’s a monthly ritual where, at a meeting of all 250 employees, one name is drawn from a hat. That person must take off two consecutive weeks sometime in the ensuing month. Southwick says it’s purpose is twofold. “First, it helps make sure that people ARE taking time off, clearing their heads, and recharging their batteries. Second, it helps us fight against single points of failure within the company. When you suddenly take two weeks off, you need to make sure that other people around you understand what you do so that the company doesn’t come to a screeching halt if you’re gone,” she explains.

But, mostly, it is fun. “Imagine being told you must take two weeks off right away. It’s two weeks to do whatever you want: tackle a life-long dream, learn something new, or just relax at home,” Southwick says.

The Motley Fool’s Head “People Fool” Lee Burbage asserts, “The idea of vacation days is a flawed concept from the start. Fools have the freedom to plan their lives how it works best. We trust them to understand the demands of their role and plan accordingly. If you have a big deadline or target date for a project, then you probably know that would be a good day to be at the office.”

Mahoney agrees. Unlimited vacation fosters productivity and loyalty because it favors results over input. “We don’t judge employees based on the number of lines of code they write, but instead on the impact their innovative ideas have on our users,” he says. “If we trust employees to make the right decisions with the time they spend at work in pursuit of our aggressive goals, we can trust them to make responsible decisions about when they choose to take time off of work.”

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