A recent MediaPost article by Dave Morgan covered Netflix' vacation policy, or rather the lack of one.

Some of the claimed benefits of the this rule, which literally reads "there is no policy or tracking":

-Focus on Performance not Process

-Reflects Reality

-Defines culture of company

-Empowers Employees

In theory, I believe the above are true. If you can get your work done, then who cares how, when, or where you do it right? In a startup culture, which Netflix once was, I believe this attitude can thrive. In the corporate world I wouldn't be so confident.

As the author pointed out from his own experience in digital start-ups, people took too little vacation not too much. This points out half of the negative equation. People will work too much unless you quantify something that they are losing. The second half of this equation is that you are creating unnecessary conflict among employees by introducing a tool of comparison. Anyone who has worked for a company knows that taking vacation = guilt. When you are given time by your company, you are taking what is entitled to you. When you take vacation based on your own scale of entitlement, you're taking away from everyone else in the company. Lastly, while this won't be a problem for most, some people will abuse the system and cost you money.

This system optimizes negative behavior.

Good employees will work too much and burn themselves out.

Bad employees won't work enough because they aren't being forced to.

Force People to Take Vacation

If someone came over to your house and painted your walls would you let them walk out without paying them? Buying them dinner? Giving them a thank you gift? I sure wouldn't. Our culture generally requires us to deny accepting forms of gratitude for services or favors. If you don't make an offer (in this case, vacations) people will feel uncomfortable to ask you for it. I highly respect the direction Netflix is trying to move in by trying to evolve the work/life balance, but for now, kick your employees out of the office once in a while so they get the time they deserve.