As of January 16th, Microsoft (NASDAQ:MSFT) is changing its vacation policy to give U.S.-based salaried workers unlimited Discretionary Time Off (DTO). According to a spokesperson for the company, “How, when, and where employees do their jobs has dramatically changed and DTO aligns with more flexible ways of working.”
Microsoft has implemented a hybrid workplace model, offering flexibility for remote work, but it expects most employees to be in the office at least 50% of the time.This time off will be in addition to corporate holidays, leaves of absence, and time off for sick days, mental health, jury duty, or bereavement.
Other major companies, including Netflix (NASDAQ:NFLX), General Electric (NYSE:GE), and Microsoft-owned LinkedIn, have implemented similar policies. Experts say unlimited vacation can help attract top talent and reduce the cost of accrued vacation time. The policy can also lead to employees taking less vacation due to peer pressure and expectations around “acceptable” time off.