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The rise of flexible working has led to a new wave of companies granting unlimited holiday packages–and it turns out this bold move leads to major reductions in sickness, absence and staff turnover.


While granting unlimited holiday helps to build trust between employers and workers, some rules are still needed. If you’re thinking of going down this route, you’ll need to work out what “acceptable use” of an unlimited holiday policy would look like and how that would work with your business objectives.


An unlimited holiday policy will only work if it boosts your company’s performance. You should aim to help your staff improve their work-life balance and achieve their KPIs. Set clear boundaries and expectations around what you want them to achieve in a given period, and then offer them the flexibility to do that when and how they like.


Having a written policy is vital to avoid disputes. Be clear with your people from day one about any restrictions and what actions you’ll take if someone oversteps them.


Many employment disputes revolve around identifying what counts as “reasonable” behaviour. Help your employees by setting out examples of what you’d consider unreasonable. Underline that they’re welcome to take unlimited holidays as long as it doesn’t affect their performance.


Be aware that some may still be anxious about taking time off and need encouragement and reassurance that it really is okay. This means keeping clear communication lines open between staff and line managers.


Offering unlimited holiday should not be a substitute for other benefits, but should genuinely be a way of putting your people’s wellbeing first. They can tell, and they’ll reward you with loyalty.

Posted by: Morgan Spencer