Under the new policy, more than 1,400 senior bankers will no longer have a cap on their time off, while Junior employees will get two extra days off.
However, according to the Bank, all employees will be expected to take a minimum of 15 days a year beginning in 2023.
The firm said it will keep a record on vacation days taken and address the matter if needed during performance discussions.
From 2023, employees at all levels will be required to spend at least three weeks away from work annually, including at least one full week of consecutive days off.
Some pointed out that the move would be financial in nature, since unused holiday time is a cost for employers. The Bank said any cost savings were only incidental and the main focus is on employees wellbeing. The Bank stated in the note announcing to their employees and the press that “As we continue to take care of our people at every stage of their careers and focus on the experience of our partners and managing directors, we are pleased to announce enhancements and changes to our global vacation programme designed to further support time off to rest and recharge”.
Bentley de Beyer, the Bank’s Global Head of Human Capital Management, said: “We are proud to join with many other companies in introducing a flexible policy that requires a minimum amount of time out of the office to continue to build resiliency and sustained performance.”
Unlimited paid time off became quite popular in big companies, such as Netflix and Linkedin, as they are attractive at the recruitment stage and do not lead to an accumulation of costs for unused holidays.
Moreover, research has shown that employees with unlimited vacation often take less time off. A recent study conducted by in 2017 by the human resources platform, Namely, shows that workers with unlimited vacation days took two fewer per year on average than those with a fixed number of days off.
This type of policy allows employers to be attentive to the needs of their employees and, at the same time, to reduce costs related to the accumulation of holidays and leave.
Goldman’s new vacation policy follows the technology sector choice and also other financial firms, such as BlackRock and Bridgewater.
