Monthly Archives: June 2019

Is Unlimited Vacation a Good Idea?

Summer is the busiest travel season of the year. With kids on summer vacation and warm weather nationwide, hundreds of thousands of employees are taking time off to visit new places.

Despite so many people taking off work at once, the economy never collapses and organizations keep humming along. Which got us thinking about one of the newest crazes in company perks: unlimited vacation policies.

Are they a good idea? Or is the old model of 2-3 week restrictions still ideal? Read on to find out.

Pro #1: It Increases Employee Happiness

A 2017 report from Gallup showed that 53 percent of employees rank having a job that allows them greater work-life balance and personal well-being as “very important.” Giving employees complete flexibility over vacation schedules is the quickest way to appease this wish.

Con #1: Employees May Abuse the System…Or Get Abused by It

The verdict is still out on what type of companies truly benefit from unlimited vacation policies. Some employees can’t handle the unlimited time-off and abuse too much of a good thing. This leads to lost production hours for the company.

And on the flip side, many company cultures are so cutthroat that flex time is viewed as a weakness that sets careers back, so employees actually take less time off than they would if prescribed a set amount of days.

Pro #2: It Can Cut Costs

Traditional vacation policies result in accrued unused days off at the end of each year. And when an employee quits, gets laid off or retires, the company has to pay out these unused vacation days. Contrast this to companies with unlimited vacation policies that don’t have to carry any liability on their books for unused time off, and the difference is staggering. According to the U.S. Travel Association, this has the potential to save companies $1,898 per employee.

Con #2: Vacation Days Can No Longer Be Used as a Reward

Long-tenured employees may not take a liking to unlimited vacation policies. They spent years, and sometimes even decades, working hard to build up extra vacation days, and they viewed their surplus as a badge of honor. When the playing field is leveled and new employees are granted the same number of days off (unlimited) as everyone else, morale can take a hit.

And if companies can no longer offer an extra week of vacation in exchange for continued employment, there is one less negotiating chip on the table when an employee considers leaving for a new opportunity.

Pro #3: It Can Help Attract the Best Talent

According to a brand new survey from MetLife, the Los Angeles Times reports that unlimited vacation is now the #1 benefit workers want. Your company can use this insight to their advantage when recruiting talent. In fact, research from Glassdoor shows that nearly 80 percent of workers prefer additional benefits over income increases. That figure grows to 90 percent with millennials.

 

Con #3: You Have to Trust Employees to Manage Their Projects Accordingly

Offering unlimited vacation can backfire if you don’t have policies and procedures in place. Without structure, companies open themselves up to being burned during the busiest times of the year. When vacation days are capped, there is a safeguard in place to protect against people being out too often. Managers will need to communicate more heavily and set clearer expectations when the safeguard is removed.

 

 

By signing up with Ninja Gig, companies easily promote openings using online employment applications. Online job applications make it easy for qualified applicants to apply. Sign up now for your free trial and get your online job applications in front of potential candidates now.

Fire Them Before You Hire Them: Why Your Hiring Team Should Perform Premortems

About to extend an offer to a candidate? Maybe you should fire them first.

Premortems—the hypothetical opposite of a postmortem—have been popularized in business media the past decade and a half. Made famous by Harvard Business Review (HBR) and Amazon, premortems are performed before a project starts and operate on the assumption that the project has failed. So, the purpose is to ask what did go wrong instead of what might go wrong.

The intention of this reframe is to get your mind thinking about concrete threats to success before the project begins, rather than trying to brainstorm hypotheticals from scratch. And studies show “prospective hindsight—imagining that an event has already occurred—increases the ability to correctly identify reasons for future outcomes by 30%” according to HBR.

But these exercises are typically performed in project management circles, not personnel or HR decisions.

Until now. Here’s why your company should perform a premortem firing before hiring your next candidate.

  1. Many people are reluctant to speak up with their reservations and true feelings during the hiring phase. A faux firing of candidates highlighting how and why they failed makes it safe for dissenters who otherwise may be too worried to speak up with doubts. After all, anything said in a premortem is entirely hypothetical.
  2. Engaging in a premortem firing session will bring creative ideas to the table. Maybe there is one area of doubt you are feeling about a candidate but you can’t find the words to articulate it. Having an entire team use their imaginations to find reasons why the candidate didn’t succeed will more fully flesh out your thoughts.
  3. You’ll make better hires and continually improve at it. If prospective hindsight increases our ability to correctly identify reasons for future outcomes by 30%, your team will weed out the wrong candidates with 30% more efficiency. Apply this to your next 10 hires and you can start to see how big of a difference this practice can make in your organization.

By signing up with Ninja Gig, companies easily promote openings using online employment applications. Online job applications make it easy for qualified applicants to apply. Sign up now for your free trial and get your online job applications in front of potential candidates now.