- Standard small business vacation policy
With this vacation policy, the employees who have been in the organization for between one and five years are given ten days of vacation annually. Those who have been there for five to ten years will be given fifteen vacation days annually, while those who have spent ten to twenty years are given seventeen days of vacation per year. Lastly, those who have been in a role for more than twenty years can be given twenty vacation days per year. This arrangement does not include paid time off (PTO), such as sick days and national holidays. Furthermore, average vacation time can vary between industries. As a small business seeking a comprehensive vacation policy, you should conduct research to ensure how your industry sets its policies before coming up with yours.
- Paid time off (PTO) banks
With this arrangement, employees are given ultimate control over paid leave. This includes all-time off like sick pay, vacation days and personal leave being piled into a vacation “bank” so that employees can use it when they need it. The benefits of this approach are that it gives employees more flexibility, reduces absenteeism and boosts employee empowerment. On the other hand, the drawback is that there can be higher volumes of spread because of uneven spread in a year.
- Unlimited Vacation policy
With this policy, employees have the freedom to take time offs as much as they want as long as they can deliver their tasks on time. This policy focuses on employee productivity and results instead of being chained to their desks. The benefits of this policy are that it reduces burnout, increases productivity, empowers employees and has better recruitment and retention results. On the other hand, the drawbacks include fear that the employees can abuse the system and vacation can overlap with the chance of employees not taking enough time off.
- Rollover vacation policy
With this policy, employees have a specific set number of annual time off, but if they do not use it, they can roll them over to the next year. This approach to vacation policy increases staff flexibility, raises the opportunity for unofficial sabbaticals and avoids race for time off during end years. However, the drawback of this method is that employees can end up rolling too much leave or avoid taking regular breaks as they seek to save up vacation time. However, some companies solve the problem of rolling over too much leave or vacation by allowing a specific amount of rollovers per year.
- Use it or lose it policy
Under this vacation policy, the unused holiday or time off expires or cannot be rolled over to the following year. As the policy stipulates, if you fail to use your vacation before the year lapses, you lose it. This policy allows employees to take time off, and companies can avoid balance sheet liabilities while reducing the risk of employees using their time off all at once. The challenge is that staff can lose their much-needed time off if they fail to use it. This policy may not be good for new staff.