Bringing diversity, equity and inclusion to your holiday policy

As we prepare to end 2022, many companies are looking ahead to 2023. This includes choosing which, if any, holidays your company will observe in the new year. In addition to a generous paid time off program, an inclusive holiday policy can be an important part of your retention strategy. With the abundance of state, federal, cultural and religious holidays, it would be nearly impossible to run a business and observe every single holiday celebrated by every employee. How can you create inclusivity and still ensure business operations are maintained? 

Floating holiday

The floating holiday has gained popularity in recent years. This is a set number of hours or days given to employees to use for holidays they may observe that are not observed by the company. Floating holidays can also be used as an extra day off not included in the company vacation/PTO hours. This is often one or two days. While unused floating holidays aren’t required to be rolled over to the new year, they may need to be paid out upon termination. Talk with your consultant or employment attorney prior to implementing a floating holiday policy. 

Alternative perks to time off

If additional time off is not an option, you may want to consider alternative options on days that are widely considered to be a holiday. Impose a casual dress day in the office or order lunch in for your team. You could also allow employees the flexibility to work remotely or work a half day.

Include your employees

None of these recommendations will be seen as beneficial if they aren’t important to your employees. Talk to your team, send out a survey, or collect their feedback in some way to learn what they want from their holiday schedule. 

It is important to remember that there is no federal or California state requirement to provide paid or unpaid company holidays. Your decision to offer holidays is a benefit to employees. 

Have ideas or questions? We’re here to help.