One-click payment company Bolt has discontinued its unlimited paid holiday policy after reporting that “B-performers” were taking advantage of the benefit.
Co-founder and chairman Ryan Breslow led the initiative as part of his plan to transform traditional work practices.
In a LinkedIn post, Breslow said, “It sounds progressive, but it’s totally broken. When time off is undefined, the good ones don’t take PTO. The bad ones take too much.”
“This leads to A-performer burnout. B-performer luxuries. And feelings of unfairness across the board.”
Bolt now provides four weeks of mandatory paid vacation, with extra time earned based on length of service.
“Not optional. We mandate everyone take all 4 weeks off,” Breslow said.
“Execution requires clarity. That applies to PTO, too.”
Research indicates that employees with this perk take two to three more days off annually compared to those at companies with fixed holiday allowances.
There is also evidence that employees may hesitate to use the scheme, fearing that being perceived as lazy could jeopardise their job security.
In 2023, CBS MoneyWatch reported that unlimited vacation policies enable companies to eliminate unused vacation day liabilities from their balance sheets, saving them billions of dollars.
Peter Cappelli, director of the Center for Human Resources at the University of Pennsylvania’s Wharton School, estimated that U.S. businesses save approximately $224 billion through this practice.
Meanwhile, the unlimited vacation model also has its sceptics. Robert Sweeney, chief executive of technology company Facet, criticised the policy.
Sweeney described unlimited vacation as a scam, and taking too much time off will only get an employee fired.
“The problem is you have no idea how much vacation is too much vacation, so most people play it safe and take less time off.”