Unlimited vacation: Indiana company joins ranks of those offering unique employee perk
NEW ALBANY, Ind. — Jason Hahn plans to take two weeks off for his honeymoon this year and also slip in some vacation days around Christmas.
Ashley Best would like to spend some extra time — maybe even taking a full-fledged staycation — with her newborn daughter.
Both Hahn and Best will be able to do so without any protest from their employer, Indiana-based SmartBox Web Marketing.
Colin Receveur, the founder and CEO of the New Albany business, which provides marketing services to dentists, recently implemented an unlimited paid time off policy for most of his 75 employees.
That means Hahn and Best are free to take as many days off as they would like this year — and get paid for it.
On the surface, unlimited vacation might seem like a radical idea. Only 1 to 2 percent of companies in corporate America offer the benefit, according to the Society for Human Resource Management’s 2016 Employee Benefits report. Leaders at many companies that have adopted the policy praise the perk as a way of lifting morale among workers and purging the liabilities of paying for accrued vacation time. But others caution that it’s not for everyone. Evren Esen, director of survey programs for the Society for Human Resource Management, says the statistic hasn’t changed much in the last five years.
That doesn’t surprise Receveur.
“We look at ourselves as a progressive company,” he told the Jeffersonville, Indiana News and Tribune. “We have a lot of remote time for everybody who works here. (Unlimited paid time off) just seemed like the next logical step.”
Receveur sees the policy as a way to attract and retain talent. Before February, SmartBox employees were given two weeks of vacation each year, which they could accrue if they chose not to take it all.
Then SmartBox launched its new unlimited policy, currently only for salaried workers, which make up about 70 percent of the company’s employees, according to Receveur.
SmartBox’s hourly employees are restricted to only three weeks off each year, but only because the corporate labor laws surrounding the policy for them are vague.
“When the courts and laws catch up to progress, then we’ll expand that into unlimited paid time off for the hourly folks as well,” Receveur said.
To prevent employees from taking less time off under the new policy than they would under the previous one, Receveur has also instituted a two-week minimum on vacation time.
“There’s no reason for people not to take two weeks of vacation a year,” he said. “Take every Friday off a year if you want. You know, get some time to recharge and spend some time with your family and whatever you enjoy doing.”
Receveur, 32, doesn’t like the mentality that companies should work their employees as hard as possible. That’s a mindset he associates with older generations.
It was another reason Receveur was so quick to embrace the idea of unlimited paid time off when he first started hearing about it.
SmartBox has connections to companies, some of them in tech fields, that are located out west. It’s those businesses that already have unlimited paid time off — businesses such as Netflix and LinkedIn or even lesser-known ones like Infusionsoft.
Receveur began to consider unlimited paid time off as an option in earnest in the third quarter of last year. He estimates he looked at hundreds of policies before deciding how to craft his.
He also introduced the idea to employees before it was official and asked for feedback.
It was mostly positive, he said. Best, who received the news when she was on maternity leave, was flabbergasted by the news.
“I heard about it and went, ‘What? This can’t be. I read this wrong,’” she said. “I totally thought I had read it wrong… I mean, you just don’t hear about it, right?”
One thing Receveur said he wasn’t worried about was employees taking advantage of the new policy. It wasn’t something he saw happening at other companies doing the same things.
Both Best and Hahn said they’d be OK with taking extra paid time off only if they felt they had worked enough for it not to be a problem.
“If you’re going to spend time off, you’re going to bust your butt when you are here,” Best said.
The Jeffersonville, Indiana News and Tribune contributed to this story.