How to Prevent Burnout Through Vacation Policies at Your Business

• Unlimited vacation policies aren’t always the answer to getting employees to take time off.
• Without guidelines, employees may not know how much time to request.
• Founders, executives and consultants shared tips to encourage employees to request time off.
• This article is part of Talent Insider, a series of expert advice designed to help small business owners overcome a range of hiring challenges.

Unlimited vacation policies have become more common in the workplace, but some consultants and executives say that’s not necessarily a good thing.

Sophie Theen, a recruitment consultant, told Insider that missing parameters can become a problem for companies when employees don’t know what’s acceptable or what’s expected of them.

“It becomes unmanageable because it’s limitless without so much guardrail,” she said. “It means that people are effectively not taking vacations at all because they have to work all the time.”

But founders and executives told Insider that by setting expectations, building trust and leading by example, business leaders can ensure their employees are making the time they need.

Demystify unlimited free time and build confidence

The founders and executives said that when establishing a vacation policy, executives should remember the company’s values.

Gilles Raymond, founder and CEO of Letsmeet, a tech startup with seven employees, said that in every decision he makes, he prioritizes the value of his company in terms of transparency and engagement.

“The value is not what you put on the board in front of the coffee maker or at the entrance,” he said. “You have to show that in your management every day.”

Businesses with an unlimited vacation policy should also have policies that help employees use it effectively. Amy Zimmerman, chief people officer at Relay Payments, a logistics fintech with 150 employees, said “it gets a little murky when you’re working indefinitely” and people aren’t sure what that means or how much too much is.

She suggested managers make it clear to employees that they trust them to make decisions. “People feel uncomfortable when they’re insecure,” she said. “Use these words: ‘I trust you. I trust you will get the job done.’”

Raymond said that as long as his employees are effective, he doesn’t care when they come to work or when they leave, nor do they owe him any explanations. He added that if he trusts his team members, they don’t have to justify themselves.

“They will give you back the trust you put in them,” he said.

When founders take time off, employees follow suit

When leaders take time off—and actually switch off from work—they are setting an example for their employees. “They pay more attention to what their manager is doing and possibly what other team members are doing as well,” Zimmerman said.

She suggested managers separate work — by deleting email and messaging apps or pausing notifications — to show employees they don’t expect to be working on furloughs.

“If you’re on vacation, really be on vacation,” she said. “Don’t keep connecting with people and giving new assignments because people are paying attention.”

Sam Eitzen, co-founder and CEO of photo booth company Snapbar, took six weeks off this summer to travel. “One of my greatest passions in life is traveling with my wife and three children,” he said. “So I probably prioritize that as much as I do work.”

Snapbar’s paid time off is based on seniority, and Eitzen said its employees average four to five weeks off per year. They also have three or four “Big Picture Days” throughout the year to take breaks and reset.

Eitzen said that since Snapbar has a small team of 12 people, it’s crucial to document everything and have contingency plans in place so employees can feel safe when they take time off, knowing that they are being taken care of when something goes wrong.

“I never work vacations, and neither have we,” he said. “People will be signed out and mute all notifications.”

If you noticed that some employees weren’t taking all that much time off, Zimmerman suggested having a conversation to ask what might be stopping them from taking vacations. Throughout the year, remind them to make requests, then offer them ways to manage their workload while they’re away.