Introduction

Employees are looking to have flexibility in their lives. The idea of a PTO or Paid Time Off program is to give an element of control to the employees. Time off to refresh and recharge is good for business too as stressed out people simply do not perform at their best, if at all. When employees have to worry about home and/or do not have the flexibility to deal with urgent situations, it is as if only part of the person comes to work that day. Employees' are having time off available, as needed is a huge contributor to building employee morale.

You can leverage a PTO program to be the employee benefit and time off advantage you intended. No more allotments of fixed time off in categories such as vacation, illness, personal. Instead, employees have a single allotment that they can use as they see fit, while still subject to any restrictions needed for the daily operations of your business.

A good time off program is the cornerstone of an employer's benefits package. Employees expect both good benefits and good benefit programs including having flexible time off options. To most employees, time off is just as important as health insurance. However, in our quest to negotiate 3rd party purchased benefits, the structure of internal time off programs can be overlooked.

Not only do employees want and expect time off to refresh and recharge, they also need time available for routine healthcare, family emergencies, unexpected illness, appliance deliveries, contractors, and all the circumstances of daily life that arise. Traditional static programs that shoehorn an employee's available time off into categories of fixed amounts often do not work with today's complicated lifestyles. Even an employer with a generous fixed time off policy can find themselves with distracted or unexpectedly absent employees. Should an employee with an abundance of vacation be penalized for caring for a sick child? Should an employee with an abundance of sick time be penalized for calling in sick to use it up? These situations are not efficient for the business and can become increasingly frustrating for employees as well. One of the main benefits to the employer is a reduction in unscheduled absences and tardiness, which means less of a burden for employer, co-worker and employee alike.

Learning Objectives

  • How to evaluate properly a PTO program for your business
  • Understand the competitive advantages PTO offers
  • How to build a persuasive business case for presentation to executives
  • The most common PTO pitfalls and how to avoid
  • Types of time off that are typically included and excluded in PTO programs
  • Determining what is a proper PTO plan for your company
  • Review the 12 major things to consider when switching to a PTO program
  • Developing a thorough communication plan

Why should you attend?

Administratively speaking when planned properly and communicated there is less of a burden to HR, managers and employees. The employee realizes a newfound freedom, sense of control, satisfaction and even responsibility for managing their time off according to what is important to them. Co-workers are happier too as they are not left scrambling to fill in for other employees unscheduled absences. Happier employees translate into increased morale and engagement, even better teamwork, creating a competitive edge in the market for labor.

So what could go wrong? To start, transitioning existing time off banks leaves and benefits into a PTO program can be confusing to say the least. All existing benefits require review to make sure employees are left at the least, in the same if not a better position than before the transition to PTO. The communications for employees to understand the transition is a good thing can be just as tricky. Fears need addressed in a clear and positive manner. Some traditional managers can view PTO programs as a loss of control and those managers have to be educated as well.

Employers in states that treat sick pay differently than vacation pay upon an employee's termination need to run the numbers carefully. There is a lot of planning that needs to be in place from structure all the way through to communication and implementation.

Who Will Benefit

  • Human Resources
  • Small business owners

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Teri Morning, MBA, MS, SHRM-SCP, is President of Hindsight Human Resources, LLC. and specializes in solving company “people problems.” Teri also sources software solutions for compensation and pe Know More

Teri Morning