When I joined Kronos as one of its first employees, straight out of college in 1979, the company gave new employees two weeks of paid vacation. Every year you stayed at the company, you earned an additional day, up to a certain level. That was how most companies handled vacation time, and although the numbers may vary, it’s the way most of them still do. By 1984 I’d been promoted to national sales manager, and four years later I became the vice president of global sales and service, an executive position. Kronos, which creates workplace management software and services, had a long-standing policy that top executives needn’t track their vacation time and could take as many days as they deemed appropriate. That made sense. Even back then, people in senior roles were required to perform 24/7. When you’re constantly working nights, weekends, and during family travel, tracking your hours or declaring an official “vacation day” becomes almost meaningless. I’ve been in executive roles at Kronos ever since then, and CEO for the past 12 years. So I haven’t been required to track my vacation time for almost 30 years.
The CEO of Kronos on Launching an Unlimited Vacation Policy
Technology has made it possible for employees to be plugged in around the clock, even when they’re “on vacation.” In view of this reality, Kronos launched its open vacation policy in early 2016. To Ain’s surprise, some employees were very unhappy about it, largely for three reasons: Because the new policy required individuals to work out time off with their supervisors, some managers thought their jobs would become more difficult. Some employees who had been banking unused vacation time resented the loss of a bundle of cash when they retired. And some felt that it was unfair for new hires to get as much vacation as they themselves had earned over time. But Kronos now considers the switch a success—and 2016 was financially the company’s best year ever.