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'Unlimited time off' policy. Lots of startups & remote companies do this. We did this at Optimotive. Why?
Two reasons why this policy works.
1. Who doesn't like unlimited time off? Everyone can get behind the policy.
2. It teaches everyone personal responsibility for their work.
I always talked about the policy like this: Take care of your work. Get things done that need to get done. As long as your work, clients, and your teammates are taken care of, take whatever time off you like. Just let us know in advance so we can plan ahead for while you're out.
Remote employees succeed because they can manage their time and their environment well, and maintain a professional work ethic without the forced structure of an office. Personal ownership of handling time off flips the script.
There's a lot less "fk it, I'm off next week, I'll deal with it when I'm back". Out of sight, out of mind, etc. etc.
Now. Where does this break down?
It doesn't make sense for contractors or employees with a fixed and specific scope of work. In that role you really are being paid to show up and do a certain number of tasks each day. Pay should fluctuate up and down with time worked.
Managers also need to maintain a focus on results that matter & key inputs/outputs of work. Without that, the 'most important things' get lost. How can you make sure work is handled properly while you're out of office if no one cares about or measures what's important?
I like this policy, both as an employee and a business owner. I highly recommend most companies with any % of work from home consider implementing something similar if it's not already in place.