Rarely implemented but always well-used, floating leave policies are a great way to offer employees more control over their schedule and determine when they want to take time off from work.
When we talk about workplace leave policies, PTO offerings primarily come to mind as a way for employees to take a break from work according to their own preferences. Another similar benefit that allows employees more control over their days off is the floating leave or floating holiday policy, where the fixed holidays often provided by employers are also open to discussion. Most organizations offer a few days a year to celebrate holidays and religious festivals, but these are primarily set by the employer, regardless of whether the employees celebrate the occasion. Floating leaves allow employees to decide when they take this paid time off from work.
A floating leave policy offers numerous benefits, the most significant being the introduction of additional flexibility in the workplace. (Image: Pexels)
What is a Floating Leave Policy and How Does It Work?
Floating leave policies deviate from the typical company-wide holiday schedules and allow employees to choose when they would like to take time off from work. Rather than an automatic break during a pre-specified period, employees are able to use their leave according to their discretion for a holiday or event that better suits them. For example, not all employees might want a day off for New Year’s. Instead, some might choose to save it for a child’s birthday or another religious celebration that is more personal to them.
Many organizations offer a combination of fixed days off and assign a few days of floating leave options to allow employees the freedom to assign it to a date of their choosing. This balance can be beneficial for any organization, but it is of even greater importance for those that maintain a multicultural workforce.
Floating leaves are similar to policies that offer paid time off (PTO), however, they are usually more limited in number. They don’t carry over from one year to the next, nor do they come with any additional benefits for the employee if they are unused. Neither are mandatory by law, but PTO is typically provided by most employers, while floating leaves are occasionally used by some who don’t want their workforce to be restricted to holidays of their choosing.
What are the Benefits of an Employee Floating Holiday Policy?
Any holiday policy is a matter of interest to employees, particularly those who appreciate flexibility. Floating holidays are similarly advantageous. The benefits of a floating leave policy include:
- Flexibility in the workplace so employees can manage their schedules with greater ease
- Opportunities for employees of different ethnicities to use the leave for their own cultural holidays, creating a more inclusive environment
- Employees can save their actual PTO days for other occasions and take time off from work more freely
- Better mental health and job satisfaction when employees have more freedom at work
- Some employees remain available when the rest of the organization is away, allowing operations to keep running
Limitations of a Floating Leave Policy
The advantages of a floating leave policy might make it a tempting workplace offering to consider, but it isn’t without its limitations. For one, it can be difficult to plan around a leave when employees use their time off at different points. When the rest of the organization is operational, and some employees aren’t, it can hold up work. This, however, isn’t a major inconvenience as it is similar to planning around an employee using their PTO time.
On the other hand, when employees choose to work on a day when the majority of the organization is out, making arrangements to ensure they have a productive day at work with access to the resources they need is much harder.
During standard holidays, it is always presumed that workers will collectively be away from work. With employees utilizing their floating holidays, a large number of them may choose to be away from work during a non-standard period that is busy for the organization, making it harder to approve. Allowing employees to use their floating leave on a first-come, first-served basis is one way of dealing with this, ensuring that the leaves are more spread out over the year.
Floating Leave Best Practices: How to Make the Policy Count
If you now understand what a floating leave policy is and appreciate the benefits it offers, the limitations are easy enough to overcome. The best way to approach the implementation of the floating leave policy is to sit down with HR and other management representatives before the new year begins, and determine how to approach this. The organization must determine just how many days of floating leave should be available per year, and how employees will be able to access it. Most organizations reserve 2-3 days of their typical holiday calendar for floating leaves, but a business can increase or decrease the number of days available.
It is important to ensure that the floating leave option isn’t reserved for specific groups of employees who are more likely to need it, as this could be interpreted as preferential treatment. Instead, the policy should be available to all employees. Rules for part-time worker, however, can be different. The business can also decide whether it would prefer to have employees announce when they plan to use their leave days in advance, or allow employees to apply for it they same way they do with PTO days. Create a clear process for employees to declare their intention to use the floating leave policy and ensure there’s a way for it to be recorded and responded to by HR teams.
If there are periods where employees cannot apply for leave, or a system on how the leave is processed and approved, these need to be discussed a well. The policy should be clearly defined and the details easily accessible to the workforce to ensure that they know the rules surrounding this workplace benefit. The greater clarity that the organization, management, and employees have on the rules of the policy, the less the likelihood of friction. As long as fairness, open communication, and quick resolution lead the way, there should be no challenges in reaping the benefits of a floating holiday.
Have you ever utilized a floating leave policy? Share your experiences with us in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
