Just hear those time-off requests ringing and ring tingle tingling too. For HR managers everywhere, the start of the holiday season often doesn’t feel like a time to start celebrating as much as a time to start stressing. Not only do you have to handle all of the various last-minute time-off requests that come in on top of the already large amount of time-off requests that have already been approved, but you also need to navigate other HR-related issues that may arise during this time that are specific to the holiday season, like parties and gift-giving. It’s easy to see how this can all get pretty overwhelming pretty quickly.
At Payday HCM, we understand the stress that can accompany the end of the year and holiday season. We have plenty of clients who ask us questions not only about how they can balance meeting their year-end goals with taking the time to celebrate the holidays they typically celebrate, but also how their HR departments can be better suited to handle the sets of problems that arise during this time of year. Making sure your HR department is prepared for the end of the year and holiday season can be crucial for ensuring both your employees’ and clients’ needs are met. This all starts with setting policies related to the holiday season that can help your HR department handle the upcoming holiday season.
So, in this article, we’ll be going over three essential policies that HR departments should ensure are on their books heading into the holiday season. For this article, we’ll focus on three main areas:
We’ll look generally at what policies regarding each of these things look like, as well as how they can help your business stay ahead of any potential issues that may arise this time of year. By the end of this article, you’ll be able to celebrate heading into the end of the year instead of stressing.
1. Holiday Pay
First off, we’ll start by talking about holiday pay and how an effective holiday pay policy can help power your business through the holiday season.
What is Holiday Pay?
If you’ve ever heard the term “time-and-a-half,” it’s likely that you’ve also interacted with or have even instituted some sort of holiday policy. Even still, holiday pay policies can come in all sorts of shapes and sizes and aren’t restricted to simply time-and-a-half. Simply put, holiday pay is just compensation an employee receives for working a holiday, typically an amount on top of their regular wage.
The most common form of holiday pay is time-and-a-half, as it’s typically the most straightforward way of implementing a holiday pay policy—the Fair Labor Standards Act already requires employers to pay time-and-a-half for overtime, so the infrastructure is already there in most cases for employers to pay out the same amount for working holidays.
How Do You Create A Holiday Pay Policy?
Creating and instituting a holiday pay policy is relatively simple. The only tricky part is determining which holidays will qualify for holiday pay. Typically, employers will offer holiday pay on holidays that coincide with large amounts of time off requests or holidays where there’s an expectation of increased foot traffic.
Determining how much you offer regarding holiday pay is also something that will vary by business, but for businesses already in compliance with the FLSA that have systems in place to pay out time-and-a-half for overtime, this is often the simplest option. For some businesses, you’ll also need to determine how your holiday pay policy affects non-exempt and exempt FLSA employees.
Referencing the list of federal holidays as determined by the FLSA is a good starting point when it comes to finding holidays to offer holiday pay for working. Businesses in the retail or service sector can often benefit greatly from holiday pay policies, as the extra incentive can not only help cover the increased demand, but the extra pay can also be offset by an anticipated increase in sales due to the holiday season.
2. Floating Holidays
Time-off requests are likely to be a pain point for HR managers during the holiday season. Floating holidays can help to alleviate some of the stress.
What are Floating Holidays?
For most HR managers, the holiday season is defined by a seemingly endless number of time-off requests. Coordinating who can take off when, while ensuring the business will have enough coverage on a given day or week and that employees are being accommodated is no easy feat. Floating holidays can help to take some of this stress away.
In short, floating holidays function as a time-off policy (typically paid) where employees are given 2-3 “holidays” that they may choose to take off either from a pre-determined list or just on their own. They often function slightly differently than PTO, as they don’t require managerial approval—the employee sets their holidays and that’s that.
How Can Floating Holidays Help?
Like holiday pay, the way floating holidays function for your business will depend on how you set the policy. A floating holiday policy structured so that they do not roll over or can be paid out can help ensure employees use their floating holidays. Requiring employees to request their holidays a certain amount of time in advance can also help to alleviate some of the holiday season time-off stress.
Ultimately, while floating holidays can be a way for employers and HR managers to help manage the influx of time-off requests during the holiday season, the ultimate benefit is allowing employees to take off the holidays that matter most to them without the worry of their time-off request being rejected.
3. Gift and Holiday Party Policies
Lastly, we’ll go over how businesses can set policies that dictate rules surrounding gifts and holiday parties.
Gift and Rewards at Work Policy
Gift-giving is a major component of the holiday season, and, as such, it’s likely your employees will want to either give gifts to other employees or perhaps you may want to give your employees a gift. Either way, setting a gift policy can ensure that any gifts given or received are appropriate, fair, and personal while still aligning with company values.
As with the other policies we’ve discussed, gift policies will vary by business. However, most gift policies will include guidelines like:
- Rules regarding employees giving and receiving gifts between employees, including who employees may give gifts to, as well as when and where it is or isn’t appropriate.
- Outside gifts or client gifts—whether employees can or cannot receive them, and the circumstances in which they may be appropriate or inappropriate.
- Guidelines for receiving gifts from direct reports or supervisors.
- A generalized list of acceptable and unacceptable gifts.
- Maximum monetary value of gifts.
Setting a gift policy can help prevent employees who may not be comfortable with receiving gifts from receiving them as well as ensure fairness across your organization. Employers should also keep in mind certain gifts that may qualify as taxable income, like gift cards or certificates.
Holiday Party Policy
While the holiday season entails some longer hours and busier workdays for most, it also ushers in a time for celebration and recognition of accomplishments throughout the year. Many organizations will host holiday celebrations for their employees—it’s important to set a policy regarding organizational holiday parties to ensure total inclusion and safety.
When it comes to holiday parties, it’s often best for businesses to focus on a spirit of togetherness or celebration rather than any overt references to specific religious or cultural holidays. This can ensure everyone within your organization feels included. Businesses with hybrid or remote workers should also consider offering both in-person and virtual celebrations.
Safety and employee well-being are also large considerations when it comes to company holiday parties. In terms of alcohol, businesses should offer alternative non-alcoholic options, provide transportation, and encourage moderation. Employers should also emphasize the fact that a work party is a work function; therefore, employees should behave as such.
Stay On Top of the Holiday Season
The end of the year means the start of the holiday season. For some employers, this may be something they’d rather avoid than celebrate. Navigating the potential chaos of the holiday season can be challenging, especially when you need to accommodate the diverse ways your employees and customers celebrate it. Handling things like time off requests or a large increase in foot traffic can create headaches for supervisors and HR managers alike. Luckily, with the information provided in this article, you’ll be equipped with the policies you need to make this holiday season a breeze.
While we can talk about HR policies in a general sense, ultimately, the policies employed by your organization are going to be specific to your organization. Something like your employee handbook should reflect not only the unique work culture of your business, but also the unique employee experience that those coming to work for you can expect as a member of your company. But how much does it cost to create a meaningful, compliant employee handbook? Check out our article for more information on the cost of creating an employee handbook.
Topics: