Unlimited Vacation days may not be a benefit!

Tuesday, June 26th, 2012

Do you think a company giving employees unlimited vacation days is a benefit?  Well more and more companies are offering unlimited vacation days as a perk.  However, I don’t view it as a perk.

Consider this:

  • How many people do you know regularly take off of work more than 20 days a year?
  • Maybe some.
  • How many people do you know regularly take off of work more than 25 days a year?
  • Maybe a few.
  • How many people do you know regularly take off of work more than 30 days a year?
  • Probably none.
  • What do you think would happen to an employee who took off of work more than 35 days a year just to go on vacation from time to time?

They would probably be managed out of the company or their career would stall because of lack of accomplishments.

Why are companies offering unlimited vacation days?

The answer is simple, companies have gotten smart and realized that is saves them a lot of money in the long run.


For example, let’s say you have a job paying $100,000 a year that comes with 20 days of vacation. If you only use fifteen days of vacation annually and bank the additional five days, at the end of five years you would have accrued twenty-five days of unused vacation time.

Those days will be worth almost $10,000 before taxes, once you cash them in.  And if you got a 5% raise every year you would actually get to cash in a little more than $12,000.

By offering unlimited vacation days companies know most people probably aren’t going to use more than 20 vacation days during the year and because employees aren’t granted any specific amount of vacation day’s companies do not have to pay out any unused vacation days when an employee leaves the company.


I’m hoping more candidates catch on to this and prevent this from becoming a standard practice. And I recommend that if someone is going to work for a company that offers an unlimited amount of vacation days that they negotiate for the ability to roll over and bank a certain amount of vacation days (if they use less than 20 days for that year).


Ryan Fisher

Ryan Fisher is a Career Consultant and author of book,  Corporate Recruiter Tells All – Tips, Secrets, and Strategies to Landing Your Dream Job.

One Response to “Unlimited Vacation days may not be a benefit!”

  1. I really agree that unlimited vacation will never be a benefit for any employee. Some company offer this to save a lot of money.

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