What is a Floating Holiday?
A floating holiday is a day of PTO that employees can use in addition to vacation, sick leave, or other PTO accrued during the calendar year. A company can either provide a floating holiday instead of an unnoticed public holiday or let the employees select which day of the year they wish to take off.
Option one involves the employer compiling a list of holidays for which the firm does not already provide paid time off and the employee selecting a floating holiday from that list (e.g., Good Friday, Black Friday, Christmas Eve). Option two allows employees to use their floating holiday on any day of the year.
Employees are usually entitled to utilise their floating holidays immediately, which is not always the case with other forms of PTO that may need accumulation.
Advantages of providing a floating holiday
A floating holiday benefit may provide employees with flexibility, boost team morale, and promote diversity and inclusion in your organisation. Here's a closer look at some of the primary advantages of floating vacations:
A floating holiday benefit gives your staff flexibility. It has been shown to promote productivity and prevent burnout by improving employees' work/life balance.
By providing floating holidays, you are embracing diverse cultures and beliefs. A flexible floating vacation allows workers from various cultures or backgrounds to feel respected as members of your organisation. It permits employees to observe religious or cultural holidays that are not included in the business calendar.
Employees can save extra PTO for vacation, sick days, or other personal needs. Employees may need a day off due to personal or family obligations. They can utilise a floating day instead of vacation time when necessary. Employees can also use floating holidays to extend their existing vacation or take a longer break after Christmas to spend time with their families, for example.
A floating holiday can be utilised to make up for when employees are required to work on a regular holiday. Holidays may happen on a day that forbids employees from having the day off if a firm has solid deadlines or a restrictive schedule. When employees are required to work on holidays, a floating holiday benefit allows them to take a day off on another day of their choosing.
When is it permissible for an employee to take a floating holiday?
Employees may take a floating holiday on any day of the year or as specified in their company's floating-holiday policy. Some organisations, for example, require employees to choose from a list of floating holidays (e.g., Good Friday, Presidents Day, birthdays, anniversaries).
Can employees roll over unused floating holidays from one year to the next?
Unused floating vacations are not usually carried over to the following year. Some firms, however, do compensate employees for wasted floating holidays when they leave the company. However, these criteria frequently vary by state and the terms of your specific insurance.
The specifics of how floating holidays function are up to the employer (in compliance with state legislation) and should be detailed in the floating-holiday policy.
Do businesses have to offer floating holidays?
Employers don't need to incorporate floating holidays in their employee benefits packages.
Are there any drawbacks to floating holidays?
The disadvantages of floating vacations will only occur in limited circumstances. It all depends on how you manage it as an employer.
Depending on your sector, there may be periods when it is less advantageous for specific roles to take time off. Employees will perceive you as unfair if you are inconsistent in the dates you allow for vacation and the persons you enable to take floating holidays.
To gain the full benefits of floating holidays without making your staff uncomfortable, you must find a fair, happy medium while still doing business.