The problem with unlimited vacation days is that it creates a bimodal distribution of usage—some employees take too little time off and some employees take way too much time off. At worst this creates resentment between employees and unwritten rules about when one should take time off.
Having an accrued vacation days makes taking time off explicit. It encourages people to take time off otherwise they could lose it. In the event they leave the company, they will get paid for unused vacation days.
- This is especially true for remote teams who need to be more deliberate about everything
- There are negative consequences of informal structures and those developing norms around time off might not have everyone’s best interest in mind