Recently several companies made the news by announcing that they were establishing vacation policies that allowed an

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Recently several companies made the news by announcing that they were establishing vacation policies that allowed an unlimited number of days off. The thinking behind this policy is that it demonstrates trust, and employees would feel respected. In contrast, the crowdfunding website Kickstarter, which already allowed unlimited vacation, moved in the opposite direction. It changed its benefits from “unlimited” vacation to 25 days per year.

Brooklyn-based Kickstarter didn’t create the limit because its 130-plus employees were abusing the policy by taking off too much time. Instead, employees worried about how much time was appropriate. They resolved the question by taking little time off, and the company worried they would become exhausted and perhaps would be more likely to leave. The company set a 25-day limit to give employees an idea of what would be appropriate.

Planning benefits based on what is good for employees is a reflection of an overall culture of doing good. Kickstarter’s mission is “to help bring creative projects to life” by bringing resources to fund the projects of artists, filmmakers, musicians, and other creative people. Backing on Kickstarter has enabled the start-up of tens of thousands of projects with funds from more than 10 million people. Kickstarter’s founders, Yancey Strickler, Charles Adler, and Perry Chen, didn’t build the business in order to cash in on its success; instead, when they organized for growth, they formed a public benefit corporation, which requires it to pursue social and environmental goals along with profits.

Another point Kickstarter emphasizes to potential employees is that, in a small company of creative peo- ple with a sense of mission, its employees feel like they are part of a unified team. Kickstarter’s website refers to community-building perks: “hack days, happy hours, trips, workshops, movies, lunches.” Along with quality of work life and 25 days of vacation, Kickstarter’s ben- efits package includes employer-paid health benefits, four months of parental leave, stipends for education and bikes, and “company meals and fresh produce from our rooftop garden.”

Questions

1. Of the employee benefits mentioned in this case, which do you think are most important for keeping Kickstarter’s workforce engaged?

2. If you were responsible for human resource manage- ment at a start-up company such as Kickstarter, would you recommend a limit on vacation days or unlimited vacation time? Explain.