Telangana: Unlimited leaves to retain talent at start-ups
Hyderabad: One of the novel fads among start-ups is the unlimited vacation to retain talent. Employers have stopped putting a cap on the number of casual leaves, personal leaves and sick leaves that an employee can avail. They are drifting away from the one-size-fits-all policy to retain the top talent.
Talented persons in start-ups often switch companies and it has become difficult to retain them despite the monetary incentives. To ensure their stay for a longer period, start-ups are implementing the unique leave policy, which has its roots in the Silicon Valley. Unlike conventional companies, start-ups do not track the number of hours put in by an employee as part of their flexible policies. Start-ups, which work at a faster pace than other streamlined companies, are known for stringent vacation policy for top performers who are crucial to the execution of big ticket tasks.
Mr Rahul Paith, chief operating officer (COO) of DocOnline, said, "We rolled out this policy to give a sense of responsibility and ownership to the top performers, and make them feel more independent and energetic. Salary is no more the contributing factor to retain top performers." Start-ups believe that people are contributing more when they are not bounded by the leave policy. Moreover, the parameters are clearly laid down as to who can avail such policies.
Akil Karthik, chief executive officer of start-up Radikal Tribe, said, "The move to give incentives to top performers with unlimited vacations is a welcome step. But efficiency is paramount for any start-up. Number of vacation days is never a problem but the timing of such days has to be done effectively. Since we don't count number of working days, we have been flexible on the leaves. "Start-ups are known for employee-friendly nature. Employees often work online at nights and during weekends, responding to emails and solving tasks.
A chief operating officer of creative start-up, who wished not to be named, said, "Unlimited leave policy makes sense in a creative start-up who work round-the-clock without vacations. Since youths work in start-ups, they might misuse it. It is tough to keep productivity high with unlimited leaves." The unlimited leaves also make sense for start-ups as they need not pay employees for the unused leaves. However, start-ups with unlimited vacation policy require a reliable system to track vacations.
For more productivity
- Talented persons in start-ups often switch companies and it has become difficult to retain them despite the monetary incentives.
- Start-ups believe that people are contributing more when they are not bounded by the leave policy.
- Start-ups are known for employee-friendly nature. Employees often work online at nights and during weekends, responding to emails and solving tasks.