How Berkshire Hathaway Manages Annual Leave: A Look Inside Its Decentralised HR Approach
Introduction
Berkshire Hathaway is one of the world’s biggest companies, but it takes a different path compared to many firms: its subsidiaries manage their own HR and annual leave systems. There is no single process or tool for the entire group. This article examines how annual leave is managed across Berkshire Hathaway, highlighting the varied approaches among its subsidiaries and the impact on HR operations.
Key Findings
- No central HR or annual leave software covers all of Berkshire Hathaway.
- Subsidiaries select and run their own HR and leave tracking systems.
- Major examples include Berkshire Hathaway Energy’s use of Oracle Cloud HCM and another subsidiary’s adoption of UltiPro.
- Leave policies, including how staff can roll over or sell back unused leave, are set by individual businesses.
Analysis
Decentralised Structure
Berkshire Hathaway’s business model is highly decentralised^1. Each subsidiary is given the freedom to manage its own HR systems rather than following a company-wide standard. This flexibility lets businesses pick systems that suit their unique needs, but creates a patchwork of processes across the group.
Subsidiary Annual Leave Management
Berkshire Hathaway Energy—as one of the largest subsidiaries—updated its HR processes in 2021 by choosing Oracle Cloud HCM, a modern cloud-based system. This platform manages core HR needs, likely including annual leave tracking^3.
Other Berkshire subsidiaries, such as a rental company, use UltiPro from Ultimate Software. This helps unify and streamline their HR processes, including holiday approval and time-off tracking^4.
Insurance subsidiary Berkshire Hathaway GUARD sets out clear vacation, sick, and holiday policies. Staff can roll over or sell back leave. The tracking tool is not specified, but management remains local to GUARD itself^5.
Challenges and Benefits
The main challenge with this decentralised approach lies in oversight and consistency. Berkshire Hathaway does not have instant visibility over group-wide annual leave figures or trends. However, the flexibility enables quick adaptation for each subsidiary and can help meet local requirements or union rules.
For companies seeking a unified approach, adopting annual leave management software may offer more centralised controls, but Berkshire Hathaway’s example shows there are benefits to local autonomy too.
Conclusion
Berkshire Hathaway’s unique structure shapes its handling of annual leave. Rather than a single rulebook or system, each business within the group selects tools that best meet its people’s needs—whether that’s Oracle Cloud HCM, UltiPro, or other options. While this diversity can pose management challenges, it reflects the company’s commitment to flexibility and trust in its subsidiaries.