Last week I wrote about the six-hour workday, and experiment that some companies and public sector organizations have been running in Sweden (and some other places), that is designed to reduce employee stress, improve work/life balance, and improve employee engagement and retention. And the six-hour workday comes with the side benefit of helping employees stay more focused on their work while reducing unnecessary distractions.
So far, in limited experiments, the six-hour workday is proving to be pretty effective at moving the needle in a positive direction on some of HR and talent pros most intractable challenges - engagement, retention, and employer brand. Despite all this, will the six-hour workday catch in here in the USA in any noticeable way?
Or perhaps the answer is maybe not yet.
'Radical' new ideas are only radical until they hit a tipping point when they have reached just enough adoption, and from a few influential organizations, and suddenly candidates are asking your recruiters about whether or not you have six-hour days or have eliminated annual performance reviews or have implemented an unlimited vacation policy.
I just caught this piece about LinkedIn, and their recent decision to adopt an unlimited vacation policy for their employees. While LinkedIn is certainly not the first organization to trash the traditional PTO process in favor of one where employees and managers figure it out for themselves, they might be one of the largest, with about 9,000 employees worldwide. LinkedIn has likely many motivations that drove the decision to scrap the 'three weeks vacation after 5 years of service' nonsense that probably 97% of organizations use to award and track time off for their employees, but my guess would be the primary ones would be for recruiting and retention.
Likely there are dozens of Silicon Valley startups that have not bothered to worry about setting up traditional PTO plans at all that are competing with LinkedIn for talent. Just think about the difference in these two sentences in the point of view of a talented tech candidate:
1 You will accrue 4.25 hours of paid vacation every bi-weekly pay period, maxing at 80 hours until you reach 5 years of service, when the accrual maximum increases to 120 hours'
2. 'You take as much vacation as you want. Work it out with your manager and team.'
Don't bother telling me in the comments that people don't actually take as much vacation when it is 'unlimited' as they do when their is a set PTO policy and schedule. That doesn't matter one bit to the candidate, or anyone else really.
What matters is that when you can't match (and sometimes you do have great reasons why you can't), more innovative, modern, and employee-friendly policies and perks you are going to be always at a competitive disadvantage.
Once these innovations and perks make that important shift to become 'expectations' you had better have a decent rebuttal to candidates and employees who won't understand why they suddenly have to start worrying about having enough accrued hours of PTO in order to take that long weekend they deserve after pulling 70 hour weeks for two months to meet the last big ship date.
It is only a matter of time, if it has not happened yet, when one of your hiring managers comes back to you in HR and asks 'Why can't we have unlimited PTO?, the talent we need expects it.'
Have a great week!