Should your HR policy follow industry practice or best practice?
Thankfully law defined the minimum number leaves you need to give employees, it gave a clear direction for you to follow. But what about so many other policies that is left to your acumen. Say how many leaves will accumulate year on year if not consumed, or how much will get cashed out and similar others.
Getting a fix on policies can be tough, considering that various interests are at play and at times at conflicting ends to each other.
When looking at setting policies, three dimensions are worth looking. Law, Industry practice and best practice. This sounds simple but would pose serious reconciliation challenges. Sample this, Industry practice might suggest that you can allow all or a part of accumulated earned leaves to roll over to next year if unconsumed. But is it the best practice aligned to your Organisation philosophy? You might not be a work place that wants to encourage endless slogging, you'd rather expect staff to take those vacations as a mandate and not rollover nothing.
So you would rather go against the Industry practice and instil the practice of people planning ahead to consumed all their leaves. This will also ensure that teams learn how to model business deliveries around this behaviour.
Your policies are your work place ecosystem drivers, think of them much like how you see your product features. Remember the feature comparison checklist where you place your self against competitors feature on feature and see where you stand. You can and should do exactly the same on policies. You'd then see why staying at the level of legal mandate or Industry average is a losing game. Compliance levels being adhered to, you rather move towards innovating best practices.
Just like features would need re-working to sustain the advantage, so would policies require rejuvenation, so don't shut and forget. Keep at it.