In a corporate world where employees are often overworked, burned out, and hesitant to take time off, one CEO is rewriting the rules. Mark Douglas, the CEO of SteelHouse®, a marketing and advertising company based in California, believes that rest and rejuvenation are essential for a productive workforce. But he doesn’t just encourage vacations—he financially incentivizes them.
Each year, Douglas gives his employees a generous $2,000 vacation stipend. The catch? It must be spent exclusively on a trip. If employees don’t use it, they lose it. This policy has not only transformed the company’s culture but has also made its employees happier, healthier, and more dedicated than ever.
The Unconventional Vacation Policy That’s Changing the Game
Many companies offer paid vacation days, but employees often hesitate to take them, fearing they’ll fall behind on work or be seen as less committed. Douglas, however, refuses to let that mindset persist in his company.
He compares the hesitation to take time off to a caged lion that was born in captivity. “If you have a caged lion that was born in captivity, and then you open the cage, they back up more into the cage. They don’t start running free,” Douglas told Business Insider in 2016.
His goal was to remove that fear and hesitation, ensuring that employees actually took time off. He did so by making the vacation stipend an unavoidable, non-negotiable benefit. If employees don’t use the $2,000, it disappears—no exceptions.
How the SteelHouse Paid Vacation Works
The process for using the vacation stipend is seamless. Employees who book their plane tickets on a Monday get reimbursed by Tuesday. If someone can’t afford to pay upfront, SteelHouse provides access to the company credit card to cover the cost. Upon their return, employees submit receipts for reimbursement up to the $2,000 cap. The system is simple, efficient, and ensures that vacations actually happen.
What If You Don’t Want to Take a Vacation?
At SteelHouse, not taking a vacation simply isn’t an option. Douglas is adamant that time off isn’t just a perk—it’s a necessity.
“I actually want you to go somewhere and enjoy yourself,” he says.
It’s not just about rewarding employees; it’s about maintaining a thriving, energized workforce. Studies show that vacations reduce stress, improve overall well-being, and increase productivity. Douglas has seen these benefits firsthand, and he’s determined to ensure his team reaps the rewards.
Why This Perk Works: The Business Impact of Paid Vacations
Traditional corporate wisdom suggests that overworking employees leads to greater productivity. SteelHouse’s vacation policy shatters that belief. Over the past three years, only 5 out of 250 employees have left the company. That’s a staggering 98% retention rate in an industry where job-hopping is common.
“We have virtually zero turnover,” Douglas proudly states.
When employees return from vacation, they’re not just relaxed—they’re re-energized, inspired, and more engaged in their work. This boost in morale contributes to a strong company culture, greater creativity, and higher productivity.
More Than Just Vacation—A Dream Workplace
SteelHouse isn’t just offering vacations—it’s redefining the workplace experience. Employees enjoy a variety of benefits that go far beyond the typical corporate offerings:
- Competitive Salaries: Employees are compensated fairly for their work, ensuring financial stability.
- 100% Healthcare Coverage: SteelHouse covers the full cost of health insurance, providing peace of mind.
- Flexible Spending Accounts (FSA): Employees can allocate pre-tax dollars for medical and dependent care expenses.
- Unlimited Vacation Policy: Beyond the $2,000 stipend, employees have an open-ended vacation policy.
- Monthly 3-Day Weekend: Every month, the entire company enjoys an extra day off.
- Retirement Perks: Employees receive a 401(k) plan and a $500 contribution to an Acorns portfolio.
- Free Tech and Work Perks: Each employee gets a laptop that they can keep, a fully stocked kitchen, and access to food trucks.
- Office Fun: A custom in-office brewery, weekly fitness classes, and even a gated outdoor dog run make for a unique workplace environment.
Setting the Standard for a Better Workplace
SteelHouse’s progressive benefits package is raising the bar for workplace culture. The company’s employee-first approach has not only led to exceptional retention rates but has also positioned it as a model for forward-thinking companies.
While not everyone can move to Culver City, California, where SteelHouse is headquartered, Douglas’s approach should serve as an inspiration for other companies. His belief that well-rested employees are better employees is backed by data—and by the incredible loyalty of his team.
The Future of Work: More Companies Following Suit?
SteelHouse isn’t the only company recognizing the value of paid vacations. Across industries, more businesses are beginning to prioritize employee well-being. If one company is proving that this approach works, others are bound to take notice.
If you’re inspired by SteelHouse’s policies, you might be wondering: Where else can I find a great company like this? Luckily, there are many fantastic workplaces out there. Check out lists of top employers that prioritize work-life balance and employee satisfaction.
For those looking for flexible job opportunities, websites like FlexJobs offer legitimate remote positions. While a subscription fee applies, the site provides access to real, vetted jobs, making it a worthwhile investment.
Final Thoughts: A Revolutionary Approach to Employee Happiness
Mark Douglas and SteelHouse are proving that investing in employees is good for business. The $2,000 vacation stipend isn’t just a perk—it’s a statement. It says, We value you. We want you to rest. We want you to thrive.
In a world where burnout is rampant, this policy is a breath of fresh air. It’s a reminder that work should not consume our lives and that taking time for ourselves ultimately makes us better employees—and happier people.
So, the next time you hesitate to take a vacation, remember: if a CEO is willing to pay his employees to take time off, maybe it’s time for all of us to rethink the importance of rest.
