5/4/2023 0 Comments Paid time offSpecifically, we propose that UPTO can “unlock the best” and engender feelings of autonomy which in turn lead to favorable outcomes for employees and ultimately the organization. We developed a conceptual model ( Figure 1) that depicts how the effects of UPTO should exert their influence on employees from the theoretical lens of self-determination theory ( Ryan and Deci, 2000) and social exchange theory ( Homans, 1958 Blau, 1964). In this conceptual review, we will synthesize the available theorizing and very scarce empirical evidence to predict the effects of UPTO on employee health, well-being, motivation, and job performance. The COVID-19 pandemic and steep rise in remote work sparked even more interest in UPTO and related flexible work arrangements with potentially wide-ranging implications for performance management (e.g., Results Only Work Environments). Therefore, we set out to build a theoretical model on UPTO and its underlying processes and formulated propositions to explain if and under which conditions UPTO can benefit or harm individual employees, the team, and the company. However, theoretical reasoning and empirical evidence is missing to show and explain why these measures work. Accordingly, HR professionals proposed measures and boundary conditions which may ensure that UPTO unfolds its assumed benefits while preventing any harmful side-effects. On the other hand, some early adopters reported that employees took less time off than previously, presumably leading to higher burnout rates. On the one hand, paid time off is considered a key benefit by employees ( AICPA, 2018) and unlimited paid time off policies (UPTO) are seen as a major perk which may help in recruiting and retaining talented employees. It can burn workers in the end” and “Four lessons about unlimited vacation.” These examples also showcase the paradoxical effects which have been described in popular media. Recent headlines in major newspapers and online media illustrate that unlimited paid time off policies are currently fashionable and widely discussed by HR professionals around the globe ( Reeves, 2021): “Unlimited holiday: The rise of leave without limits,” “Unlimited vacation policy: Why employers should consider it,” “The ugly truth about unlimited holidays,” “Why unlimited vacation days is a scam,” “Unlimited vacation sounds amazing. We conclude with a discussion of the theoretical and societal implications of UPTO. In reviewing the literature from different fields and integrating existing theories, we arrive at a conceptual model and five propositions, which can guide future research on UPTO. We moreover discuss the boundary conditions which facilitate or inhibit the successful utilization of UPTO on individual, team, and organizational level. The core of our article constitutes the description of the effects of UPTO and the two pathways through which these effects are assumed to unfold: autonomy need satisfaction and detrimental social processes. Next, we discuss the key role of leave utilization in translating UPTO into concrete actions. We start out by defining UPTO and placing it in a historical and international perspective. In this conceptual review, we discuss the theoretical and empirical evidence regarding the potential effects of UPTO on leave utilization, well-being and performance outcomes. While on the one hand, paid time off is considered a key benefit by employees and unlimited paid time off policies (UPTO) are seen as a major perk which may help in recruiting and retaining talented employees, on the other hand, early adopters reported that employees took less time off than previously, presumably leading to higher burnout rates. Unlimited paid time off policies are currently fashionable and widely discussed by HR professionals around the globe. 5Department of Organizational, Business, and Social Psychology, Psychologische Hochschule Berlin, Berlin, Germany.4Department of Occupational, Economic and Social Psychology, University of Vienna, Vienna, Austria.3Department of Business Psychology, University of Applied Sciences Bonn-Rhein-Sieg, Rheinbach, Germany.2Department of HRM&OB, Faculty of Economics and Business, University of Groningen, Groningen, Netherlands.1Faculty of Social Sciences, Tampere University, Tampere, Finland.Syrek 3, Jana Kühnel 4* and Tim Vahle-Hinz 5
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