Looking For A Smart Business Strategy? Think Less Time On And More Time Off – Forbes

One of the smartest and most impactful strategies I've implemented for my business and team came from a gut decision. Sometimes you have to ditch the logic and analysis and simply go with a feeling. Thats what happened two years ago when I decided to mandate regular three-day weekends for everyone at our software development company. Turns out making three-day weekends a regular thing isnt just good for company culture its great for business, too.

Below, I am going to explain why that strategy of giving the team Fridays off as a mandatory benefit was one of the best business decisions we have ever made, and why you should consider doing the same.

Putting The 'Yay!' In 'FriYays'

The seed for our PTO policy was planted over drinks with a close buddy two years ago. We were talking about company culture and brainstorming ideas to differentiate our businesses from the "free snacks and happy hour" crowd. We wanted to find a way to better promote our values, positivity and performance among our team, and we knew the solution lay in the idea of work/life balance.

My friend mentioned how his company updates their PTO policy for the summer months and gives employees every other Friday off from June through August. I had heard of companies letting employees clock out early on summer Fridays, but giving them every other Friday off for three months seemed truly awesome.

I left drinks with my curiosity piqued. What if we did something like this for our software development company? I talked to my cofounder/CTO about giving our team Fridays off, and we defined three priorities:

1. Promote a culture of caring by practicing the Golden Rule and treating our team the way we wanted to be treated.

2. Do things differently.

3. Lead by example for how to build a business and team in the outsourcing software development industry.

We decided to implement a policy we called "FriYays," giving our employees every other Friday off (half the team one Friday; the other half the next Friday). At first, it was just for the summer months. But when we looked at our billable hours and productivity for those months, we didnt see any issues with our cash flow or profitability (and we noticed the team was much happier), so we extended it permanently for the entire year. This felt like a giant step.

FriYays were offered on top of the existing 25 paid vacation days, 10 national holidays, and as-needed sick days. No ones salary was lowered. With FriYays, our team got 26 extra paid vacation days each year.

Did we have strong research data to back up this decision? Not really. Did we know if it was going to disrupt productivity or output? We thought it might. Were we scared our clients may be upset that their team members werent there every Friday? Yes. Did we make a gut decision that turned out to be one of the best ones we have ever made for our business? Hell yes.

We knew it was risky, but FriYays aligned with our company values and commitment to our team. Two years later, we are all the stronger for it.

Happy Team, Better Business

With the FriYays policy in full effect, our team reports feeling happier and more motivated, and they have much more time to take care of their lives away from work. The additional paid time off frees them up to spend more time with their families and tend to personal self-care tasks. We even had a team member use his extra time off to build a cabin in the countryside.

On the business side of things, we have seen productivity go up (measured by more billable hours each month when compared year over year) and turnover go down. Our clients even report improved output and increased project satisfaction. We also shifted our business strategy to include a stronger focus on developing open-source products, as many of our software engineers enjoy spending their FriYays learning, training and working on passion projects associated with building software.

With all those positive contributing effects, its no surprise to learn that our profitability has increased significantly, too. We attract more top-tier engineering talent who know about our one-of-a-kind PTO policy. This allows us to take on larger, higher-dollar contracts, and our powerhouse team has become even more efficient and dedicated to the projects we work on.

Increased PTO: More Than A Recruitment And Retention Tool

While I do think generous PTO policies give a company a unique advantage when competing for top talent, I have found this type of benefit goes well beyond a recruitment and retention tool. The success of FriYays has helped us understand that more time away from work makes you better when you are at work. And by requiring three-day weekends instead of making vacation time "optional" or "unlimited," you can level the playing field for your employees, and they will take advantage of the time off knowing everyone else will, too.

For our existing employees, FriYays has served as a clear and resounding message that we regard them not the bottom line as our No. 1 priority. When we talk about "caring" as one of our company values, it feels good to know that we are walking the walk and backing it up with policies that prove it.

Making big decisions for your company can be scary. It is strikingly evident to me now, though, that when you do the right thing for your team, you cant go wrong. Whether its updating your PTO policy, offering the benefits you would want, sticking with yearly raises or cultivating a culture where employees can grow and get promoted, putting your team members first will pay off in ways you cant even imagine.

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Looking For A Smart Business Strategy? Think Less Time On And More Time Off - Forbes