This HuffPost Canada page is maintained as part of an online archive.
The Blogaspirationalbusinessfreelance

Richard Branson's Unlimited Vacation Proposal Is An Expert Move

In one expert move, he has built a trust and accountability economy within his business. Employees must be really happy with this change. More importantly they must feel like senior management trusts them to do the right thing and this could deliver even better results and continued happiness (even in tough times).
By 

World-renowned Futurist Speaker that writes and speaks about the technology and humanity. www.nikolasbadminton.com

World-renowned Futurist Speaker that writes and speaks about the technology and humanity. www.nikolasbadminton.com
|
This post was published on the now-closed HuffPost Contributor platform. Contributors control their own work and posted freely to our site. If you need to flag this entry as abusive, send us an email.

On Tuesday 23rd September, Richard Branson announced a bold new step forward for Virgin in a blog post on their site.

Flexible working has revolutionised how, where and when we all do our jobs. So, if working nine to five no longer applies, then why should strict annual leave (vacation) policies?

You could hear the nervous squeaking of thousands of HR staffers chairs around the world. He's introduced a potential chaos to his business. Or has he? If you look into this a little deeper then you can see that this this vacation (un)policy has some distinct boundaries:

  • All (salaried) staff can choose to take off whenever they want for as long as they want

  • They do not need to ask for prior approval and none will keep track of their days away from the office

  • The employee can decide if they want to take a few hours, a day, a week or a month off

  • But, and here's the really important part of the deal, they must ensure that they are up-to-date on every project and that their time away will not in any way damage the business

In one expert move he has built a trust and accountability economy within his business. Employees must be really happy with this change. More importantly they must feel like senior management trusts them to do the right thing and this could deliver even better results and continued happiness (even in tough times). A lot of companies still feel scared to take bold moves like this and oftentimes they fight a constant battle with keeping morale up and actively building trust. Author, Stephen M. R. Covey, summarizes very nicely why a level of internal mistrust is harmful to businesses:

When trust is low, in a company or in a relationship, it places a hidden "tax" on every transaction: every communication, every interaction, every strategy, every decision is taxed, bringing speed down and sending costs up.

Also, back in 2010, a study by Watson Wyatt showed that high trust companies outperform low trust companies by nearly 300 per cent. That's not just significant, it's game changing. By actually trusting people to do the best by the company, Virgin will not only get stronger but they will increase advocacy, closeness with the leadership and faith in the operations of the company. This should result in increased efficiencies and profit.

Businesses that aren't looking to evolve like Virgin will likely erode employees trust and the implied lack of flexibility will result in them being unhappy at work or leaving to go it alone. According to IDC, there were around 12 million full-time, home-based freelancers and independent contractors in America in 2011 and they predict that there will be 14m by 2015. That's quite the growth. This indicates that there is less fear in the unknown and freelancing is a real option these days. Sharing and collaborative platforms, like Freelancer.com, are enabling employees to see a new world where it a lot easier to stay busy, make money and work to your own schedule. I actually wonder when companies like Virgin start to see opportunities in this as well and using more on-demand resources for everything in their business using talented people that have fled unresponsive companies?

I do feel that Branson is a little late to the game with this move but also think that this is just the first stage in a wider transformation for Virgin. It will be interesting to see how this manifests over the next 12 to 18 months. I have a feeling that we won't see abuse of this policy and that people will even adhere to the current structure they are used to and will not feel pressure when asking for time away.

My advice is that if you are a business leader then you need to start paying attention to moves like this. If not, then you will start to suffer as trust gets eroded due to closed management, the impact of the sharing economy, employees taking the freelancer route, new competition and consumers demanding more from your core products and services.

ALSO ON HUFFPOST:

What Employers Can Deduce 30 Seconds Into The Job Interview
Whether You Value Your Time More Than Anyone Else's(01 of06)
Open Image Modal
You think you'll show how eager and prepared you are by arriving 15 or more minutes early, but the manager -- who's usually notified of your arrival shortly after you check in with the front desk -- suddenly feels pressured to meet with you, and the receptionist has to figure out what to do with you in the meantime, explains Jenny Blake, Life After College author and former career development manager at Google. Most hiring managers are overworked, overstressed and overscheduled. By showing up five to 10 minutes before the interview, you're demonstrating not only that you understand that, but also that you're doing your part to be one less thing for him or her to worry about. (credit:Thinkstock)
Whether You Know How To Pass The Test(02 of06)
Open Image Modal
You've scanned the company's mission statement and "About" page on the website, but have you translated those vague messages about the importance of "teamwork" and "creativity" into clues that can define your interview -- especially how you'll demonstrate those values? In This Is How to Get Your Next Job, author Andrea Kay quotes VonChurch CEO Alex Churchill, who says that every interviewee is offered a glass of water as soon as he or she walks in the door: "If you don't say thank you after being offered the water, you've failed the interview right there." Politeness is among the company's core values, and like many managers, he wants to see candidates who display those values from the start. (credit:Thinkstock)
Whether You Think Like A Sidekick(03 of06)
Open Image Modal
Most candidates have a checklist of things they want to convey in an interview: a) where they've worked, b) how much they want the job, c) how productive they are and d) a reiteration of all of the above. Too bad managers don't hire based only on these things, says Kay. "They're going to hire you because you can solve their problems." Go back to the job description and draft a new checklist, with a focus on how you'll be able to handle each responsibility on it, as well as support your boss in whatever way she needs. (credit:Thinkstock)
Whether You'll Be The Next Office Troll(04 of06)
Open Image Modal
Two seemingly nonchalant questions most employers ask before the interview even starts carry a lot more weight than you'd think: "How about this weather?" and "Did you have a hard time finding us?" Although it might seem like an easy way to commiserate -- and bond -- with strangers, bringing up the temperature or traffic tends to backfire here, even if you've had to navigate an unfamiliar office complex on a massively humid day. "The interviewer knows very little about you, so she's soaking up every little thing to assess who you are," says Allison Green of AskAManager.org. When you gripe about the small stuff, you might as well be saying, "If you hire me, I will respond to every request with an eye-roll and a heavy sigh." (credit:Thinkstock)
Whether You Know How To Pack a Bag(05 of06)
Open Image Modal
While it's always good to have work samples on hand to illustrate a point, "when you take out your portfolio right away, you're hijacking the interview, and it sends a strong signal that you're going to be a management problem down the road," says Martin Yate, author of Knock 'Em Dead: Secrets & Strategies for First-Time Job Seekers.Save it for later in the interview, when you're answering a question that can be best explained using the visuals. Beyond that, copies of your resume, pens and a notepad are critical to have on hand -- though they come with a caveat as well. Take notes only if there's something you'll need to follow up on, or if the interviewer has to answer a call mid-conversation -- that way you can remind him where you left off, Yate recommends. Otherwise, keep the pen out of your hands (especially if you're prone to absent-mindedly clicking, chewing or twirling it). (credit:Thinkstock)
Whether You Know How To Put On The Right Shoes(06 of06)
Open Image Modal
One final note: You've heard before how important it is to dress appropriately. But in the era of business casual, trendy business casual and startup casual, every office has its own unwritten rules about how people dress at work, and no two offices are quite the same. Have lunch just outside the office a few days before the interview, and pay attention to what people are wearing as they enter and exit the building, recommends Yate. The sharpest-dressed person there is your new style icon. (credit:Thinkstock)

Related

aspirationalbusinessfreelancefuture of worknews
Suggest a correction
-- This HuffPost Canada page is maintained as part of an online archive. If you have questions or concerns, please check our FAQ or contact support@huffpost.com.