A new world of work – unlimited vacations – but no one takes advantage of the offer

Investment bank Goldman Sachs has recently made a name for itself with its surprise vacation policy: It wants to give CEOs unlimited time off in the future.

This is an attempt to attract and retain the best talent in a highly competitive job market. At the same time, it is a response to the vociferous complaints from younger employees a year ago about inhumane and sick working conditions on Wall Street – 95 hours a week with only five hours of sleep a night.

This holiday model has been known in the tech industry for more than ten years. Netflix does it, Linkedin does it, and in Switzerland fintech startup Advanon in Zurich, which was celebrated in 2017 and then faltered and absorbed into CG24 Group, has done it, too. Meanwhile, the company has adapted the concept, says CG24 president and founder Christoph M. Muller. In his view, the “leave to discrimination” model primarily functions as a marketing gimmick.

Fighting the inner tamer

Because what seems like heaven has its hurdles at second glance: Employees who are allowed to take unlimited vacation don’t take advantage of the offer. They often take less vacation time than if they had stable vacation credit.

This resulted in one A much-cited study by an American startupThat employees who might decide to be absent took an average of 13 days a year. On the other hand, high-spec employees were taking an extra two days off per year. A company spokeswoman did not want to reveal what Netflix’s balance sheet would look like.

What are the reasons for this contradictory behavior? In this context, Cornelia Nossel, a work psychologist at Zug, talks about “internal stressors.” This may discourage people from taking vacations when they are allowed to. “It’s the kind of inner voice that drives these people and puts them under stress. It usually comes from childhood — maybe it’s the critical parents or your constructing thinking,” Nossel says.

“Unlimited holidays are ultimately cheaper for companies than if there were burnouts.”

Cornelia Nossl, Organizational Psychologist

Such internal stressors simultaneously reduce the ability to focus and perform. Research shows that people who experience internal conflict with these drivers almost always do more than others who do the same work without them: “And you don’t look at them.”

That is why such people are often close to exhaustion, and self-management is limited: “They are no longer able to take care of themselves and take vacations, although this will be urgently needed.”

In principle, Nussle finds this vacation model worth checking out because it allows needed people to leave if they feel overwhelmed. In the end, the company will be cheaper than if it were burnout.