What is Floating Holiday? Examples and How to Create One
Good salaries aren’t the only thing people are looking for these days. With few benefits and limited flexibility in the work setup, candidates will probably pass on your job offer. Today, many companies offer a floating holiday, an extra day of paid time off that workers can use whenever they need it. It provides a day for people to take off for themselves, whether it is a small personal event or a big family tradition.
How are floating holidays used?
They are used for different reasons, depending on the employees needs and lifestyle. These are a few common examples of how they can be used:
Cultural or Religious Factors
Some workplaces may have to account for time off for cultural or religious reasons not featured on the standard holiday calendar. Sometimes it’s something like Yom Kippur or Diwali or Eid. Some cases it is also Lunar New Year. Putting those days up can help show some respect for different backgrounds.
Life EventsÂ
We each have our own ways to celebrate life. Floating holidays provide employees time off for personal things that aren’t widely celebrated like birthdays or anniversaries. That allows them to have a chance to feel valued because they can focus on things that matter to them individually. Sometimes those days are just important on a personal level so the option does make a difference.
Additional Time Off
A floating holiday is a great way for your team to make a regular weekend into a long one or just snag an extra day off after a public holiday. Sometimes, a single day away from work is enough to let people relax and come back feeling refreshed.
Community & Volunteering Activities
Floating holidays are also good if someone wants to take a day off to volunteer for a charity that is important to them. Whether it’s volunteering at an animal shelter, helping at an assisted living home, or participating in a local clean-up, it’s an opportunity for your team to give back and feel good about it.
What is the difference between a floating holiday and PTO?Â
Both have the benefit of allowing you to stay home or miss work but still get paid, but they serve different purposes. Here’s a simple comparison.
| Feature | Floating Holiday | Standard PTO |
| What is it good for? | It is usually used on very specific occasions, personal or cultural. | May be used for vacation, sick or personal leave. |
| What is it made of? | 1 or 2 days at the beginning of employment to employees. | Typically, employees have to accrue it over time, depending on the company’s policy. |
| Does it roll over? | They generally expire at the end of the year. | They can also be carried forward to next year depending on the company’s policy. |
What’s the upside for employers to provide floating holidays?
Today, a job is not just about money. People consider benefits and the working environment when deciding whether to take a job or stay in a job. Floating holidays are a great way to make your employees feel like they are a priority.
You encourage inclusiveness.Â
That means you celebrate everyone regardless of their background, ethnicity or religion. This builds trust with your team members, because they know you care about them as people, not just as employees.
You raise their spirits.Â
That means you trust your employees enough to give them control of their schedules. It makes for happier employees, who are loyal and stay longer.
You encourage their wellbeing.Â
This means you encourage your staff to rest. Floating holidays help you avoid burnout and they can make a big difference in workplace mental health. Happy employee = very productive and positive team.
You draw talented people.Â
Flexible perks are likely to be noticed by jobseekers in a crowded market when they’re searching through open positions. Thus you will have the best candidates coming to you without too much effort in scouting.
How to write a floating holiday policy?
Create a policy that is fair to you and the employee. Begin with the questions in the guide below.
- Is it applicable to all types of employees full time, part time and even contractual employees?
- How many days are we going to give workers?
- How far in advance should the employee give notice before the day off?
- Is the day off good till the end of the year or can we carry it over to next year?
One simple act can make a big difference in the workplace. One of the things most recruitment services make a point of highlighting when attracting top talent today is a floating holiday. Combine that with good benefits and flexible work arrangements and you can build a supportive environment where people want to stay and be their best self.