Unlimited vacation time may sound wonderful in theory, but in reality, less is more. Too much choice is restrictive and confusing. Sheena Iyengar, a professor at Columbia Business School, calls this phenomenon “choice overload.” Some of her past research shows that when employees are deluged with too many mutual fund choices it overwhelms them to the point of paralysis. They become risk-averse or unable to make a decision, which leads them to either make a low yielding investment choice—or, worse, not sign up at all.
Similarly, when vacation time is offered as an unlimited resource many people decide not to take advantage because it’s too hard to figure out the right amount to take.”