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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Floating Holiday

A floating holiday refers to a day off by employees' choice without any discretion, generally outside the designated company holiday or public holiday. The flexible holiday provides flexibility and accommodates cultural, regional, and personal preferences.

What is a floating holiday?

A flexible day off that employees can take at their discretion, separate from the designated company or public holiday. Floating holidays acknowledge and respect employees' diverse backgrounds and beliefs, allowing them to take time off for cultural reasons that may not align with the company's standards.

Listen, recognize, award, and retain your employees with our Employee engagement software  

Why do companies offer floating holidays?

Companies offer floating holidays due to various reasons:

  1. Flexibility and inclusivity
  2. Employee engagement and satisfaction
  3. Work-life balance
  4. Attracting and retaining talent
  5. Compliance with legal requirements

      1. Flexibility and inclusivity: Floating holiday provides flexibility to employees that allows them to observe personally meaningful holidays, including respecting diverse culture, religion, and personal background.

       2. Employee engagement and satisfaction: Providing options for floating holidays enhances employee satisfaction and employment, demonstrating the                     company's value and respect for employee individuality.

       3. Work-life balance: It also helps to promote work-life balance by allowing employees more control over the holiday, which will enable them to prioritize their personal needs, celebration, or important events.

       4. Attracting and retaining talent: Benefits often attract employees to work with the organization and retain them, also helping the company to stand out in the      job market. It helps to demonstrate the commitment to employees' well-being.

       5. Compliance with legal requirements: In various companies, there may be legal requirements to provide certain holidays to accommodate employees' religious observances.

Is floating holiday paid?

Yes, floating holidays are the paid time off from work that employees can redeem.

What is floating holiday pay?

Floating holiday pay refers to the compensation provided to the employees when they take a floating holiday that is flexible and offered without any discretion. Floating holiday pay depends on company policies, employment contracts and labor laws.

How many floating holidays do companies offer?

The number of floating holidays may vary by company. Companies that offer floating holidays may provide anywhere from one to a few days of floating holiday entitled year. The floating holidays may/ may not be carried forward to another year, which certainly depends on the company's policies.

It's important to review a company's employee handbook, HR policies or consult with the HR department that may help you with the specific number of floating holidays.

How do floating holidays work?

Here's how floating holidays work:

  1. Allocation
  2. Employee choice
  3. Request and approvals
  4. Purpose and usage
  5. Carryover and expiration

      1. Allocation: Companies provide a specific number of floating holidays to employees each year, which is based on company policies, employment agreements, and other components.

      2. Employee choice: Floating holiday offers flexibility, allowing employees to choose when they require to observe holidays according to their needs. Employees can take the lead and decide the days when they would like to redeem the holiday.

      3. Request and approvals: Employees typically are requested to follow the company's time-off request process for floating holidays. This may involve submitting a thorough request to the manager or an HR representative.

      4. Purpose and usage: Floating holidays are provided to employees with an add-on flexibility to accommodate personal needs and preferences that may not be allocated by regular fixed holiday plans.

      5. Carryover and expiration: Floating holiday policies may vary from company to company, but many companies may carry forward to another year, whereas some companies may limit carryover or implement expiration dates to ensure employees utilize their floating holidays.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Can floating holidays be used anytime?

Yes, floating holidays can be used at any time as they are flexible according to the employee's choice.

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