What is it?
A floating holiday is a paid day off that employees can take at their discretion, rather than on a specific, fixed holiday. Unlike traditional holidays such as New Year's Day or Australia Day, which are observed on set dates, floating holidays give employees flexibility to choose when they want to take time off. Floating holidays are often used for personal events, cultural or religious observances, or simply when employees want an extra day off that aligns with their needs. Employers may offer a set number of floating holidays per year, and employees can typically request to use them as long as it fits within the company’s policies and scheduling requirements.
Why is it important?
- Flexibility for Employees: Floating holidays provide employees with greater control over their time off, allowing them to observe personal or religious holidays that may not be recognised by the company’s standard holiday schedule. This flexibility can improve work-life balance and job satisfaction.
- Inclusivity: Offering floating holidays helps create a more inclusive work environment by recognising that employees come from diverse backgrounds with different cultural, religious, or personal observances. It allows employees to celebrate holidays that are meaningful to them without needing to take unpaid leave or use their regular vacation days.
- Improves Employee Engagement and Morale: Giving employees the option to choose their time off fosters a sense of empowerment and trust. This can increase morale, productivity, and loyalty to the company.
- Attractive to Talent: In a competitive job market, offering flexible benefits such as floating holidays can make an organisation more appealing to potential employees, particularly those seeking work environments that accommodate diverse needs.
- Reduces Absenteeism: By providing floating holidays, employers can reduce unscheduled absenteeism, as employees are more likely to plan their time off in advance, rather than calling in sick or taking unplanned days off.
