During the holiday season, a well-designed time-off request workflow is crucial for maintaining smooth business operations while ensuring employee satisfaction and effective holiday staffing. And this year, the ability to maintain necessary holiday staffing levels is looking harder than ever.
According to HR Dive, 71% of retailers say they are understaffed one to three days per week and are having to find ways to incentivize employees to pick up additional hard-to-fill shifts. And it’s not just retail: according to data from BLS and the U.S. Chamber of Commerce, the U.S. still has fewer workers than jobs across the board.
Managers have to manage a very careful balance when evaluating time-off requests: “Our analysis reveals an important trade-off for managers,” wrote Univeristy of Texas at Austin research Caleb Kwon in a study of time-off request management at large retail stores. “Approving requests can reduce scheduled labor and sales, while rejecting them increases absenteeism and employee turnover.”
In fact, his study found that rejecting a time-off request increases the probability of absenteeism by 5.5% and employee separation (turnover) by as much as 6.9%. Worse, these effects can be cumulative with multiple rejections.
So, how can employers cover their scheduling needs in a tight labor market without risking increased absenteeism and turnover?
To begin, draft a comprehensive time-off policy outlining how requests are prioritized, the maximum number of employees allowed off simultaneously, and deadlines for submitting workplace holiday requests. Communicate this policy through employee handbooks, onboarding sessions, and internal portals. Clear guidelines reduce confusion and set expectations upfront, ensuring everyone understands the rules. This also minimizes last-minute disputes and complaints, as employees know how decisions are made.
Use an HR management system (HRMS) or scheduling management tool where employees can submit their requests electronically. The system should allow easy tracking of requests, show team availability, and automatically flag potential conflicts. Automation can help too by streamlining the request process, reducing administrative workload, and logging all requests accurately and promptly.
For businesses, automation minimizes the risk of missed or misplaced requests and allows better planning. For employees, a digital system simplifies the process and provides immediate feedback on request status.
Define a cut-off date (e.g., six weeks to two months before the holiday period) by which employees must submit their holiday time-off requests. Remind employees of this deadline multiple times via multiple channels, such as email and internal messaging platforms.
Then, make sure the cut-off date falls as far before the holiday season as is logistically possible. The UT Austin study found that even a 1% increase in advance notice was associated with a 6.7% increase in time-off approval rates.
This makes sense: with more advance notice, managers will have more time and more options for filling shifts. For what it’s worth, the study also found that there’s a point of diminishing returns, so setting the cut-off date too far ahead of time may backfire.
Consider also setting a time limit for making the approval/denial decision. One of the best ways managers can offset the risks of absenteeism and turnover is to make decisions promptly rather than dragging them out. This won’t always be possible, but a quick decision seems to communicate respect for the employee and gives the employee ample opportunity to make alternative arrangements for themselves.
To deal with overlapping requests, determine a method to prioritize time-off requests, such as "first-come, first-served," a rotating schedule for popular dates, or prioritizing based on seniority or business needs. Make these criteria transparent in the time-off policy. Prioritization criteria provide a structured way to handle overlapping requests fairly, ensuring that no employee feels left out or unfairly treated.
For businesses, this step helps balance staffing levels without having to deny all overlapping requests. Employees benefit from a clear understanding of how decisions are made, which helps prevent feelings of favoritism or unfair treatment.
A study published in The Psychologist-Manager Journal found that “[t]he most frequent barrier to accommodating employees' request was lack of authority.” For that reason, to avoid delays and confusion, ensure there is at least one designated person with the authority to make final decisions on time-off requests and who can communicate promptly with employees, confirming approvals or providing explanations if a request is denied.
In other words, without a clear decision-maker, requests can get delayed, leading to frustration and operational issues. Ensuring someone has the authority to approve or deny requests is essential for a fair and orderly process. From a business perspective, manager oversight ensures coverage of critical roles, while swift decision-making avoids unnecessary delays. For employees, direct feedback from an authorized decision-maker creates clarity and prevents feelings of neglect or inconsistency in handling requests.
When denying requests, provide employees with alternative options, such as suggesting different days or encouraging shift swaps with colleagues. To ease the sting of a rejection—or avoid the need to reject a request altogether—also consider offering incentives like shift premiums, perks like employee discounts, and flexible work-from-home days for those who work during peak workplace holidays.
Offering alternatives shows employees that the company values their time-off needs, even when it cannot approve specific requests. This helps mitigate disappointment and maintains morale. Consequently, the business maintains adequate staffing levels without outright denying employees' requests, which can lead to dissatisfaction. For employees, having options rather than a simple denial helps preserve goodwill.
By establishing clear policies, automating requests, prioritizing fairly, and allowing room for compromise, companies can meet business demands without alienating their workforce. Implementing these steps ensures that both business and employee needs are met, reducing potential conflicts and fostering a positive workplace culture.
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