What is Paid Time Off (PTO)? Paid Time Off (PTO) allows employees to take a certain number of days off, typically based on a certain amount of time they've worked at a company. Rather than giving employees vacation and sick days, many companies use PTO as an all-in-one opportunity for employees to take time off at their own discretion. For this reason, you should consider implementing Paid Time Off (PTO) to allow employees to take care of themselves without fearing financial punishment as a result. If an employee takes one day off, they're taking eight hours of PTO. Unlimited PTO Unlimited PTO works the same as PTO, except you don't assign a certain number of allotted days to your employees -- instead, you trust them to take any time off they need, as long as they get their work done. In reality, employees with unlimited PTO typically don't take any more days off than employees with an assigned amount of PTO -- in fact, marketing automation company Salesfusion found that after they implemented unlimited paid vacation, their employees actually started taking fewer days off. Additionally, an employee's workplace happiness can help improve team morale. Urge employees to let you know what they need from you ahead of time, so you can get your work done before you leave the office. Set an automatic out-of-office reply to emails, and include an employee or manager's email as an alternative if it's an emergency.
From 1976 to 2000, the average working American took off more than 20 days a year.
15 years later, that number has decreased to 16 days for the average American.
We all know the importance of work-life balance — but, unfortunately, we don’t always know how to implement formal company policies to give employees’ legitimate permission to take time off. And, without company approval, many employees are leaving free vacation days on the table.
Additionally, your employees are unique. While some might want time off to visit the Grand Canyon, others might just want to stay home with a sick child, or catch up on errands.
A lack of time off for employees can impact your company’s bottom line, too. In fact, people who use vacation days are more likely to get a promotion or raise. Ultimately, time off allows people to recharge and maintain peak productivity levels, undoubtedly good for your company’s long-term growth.
To ensure your company sees optimal success in 2019, we’ve created this guide to Paid Time Off (PTO), which can help create a culture in which employees feel secure taking the time they need to maintain a healthy work-life balance.
What is Paid Time Off (PTO)?
Paid Time Off (PTO) allows employees to take a certain number of days off, typically based on a certain amount of time they’ve worked at a company. Rather than giving employees vacation and sick days, many companies use PTO as an all-in-one opportunity for employees to take time off at their own discretion. This helps employees avoid burnout, and allows managers to avert the administrative hassles of tracking where employees are when they’re out of office.
Your employees are all unique individuals. Some of them value travel, while others enjoy quality family time. Some want to sit at home with a book, while others want more time to train for a marathon.
Plus, events can often arise that are unplanned — a sick child, a car that breaks down, or a last-minute dentist appointment.
Our 9-to-5 work schedule is not always conducive to the demands we feel from other aspects of our lives. For this reason, you should consider implementing Paid Time Off (PTO) to allow employees to take care of themselves without fearing financial punishment as a result.
Essentially, PTO allows employees to accrue time-off based on hours worked — for a certain number of hours worked, an employee earns a certain amount of PTO that is credited to an employee’s “bank”, typically after a pay period. If an employee takes one day off, they’re taking eight hours of PTO.
PTO often takes the place of a company’s vacation and sick day policies. Instead of offering separate buckets of time-off for different reasons, you offer PTO as an all-in-one opportunity for employees to take time off at their own discretion.
It’s easy to see the administrative and leadership benefits of PTO — with PTO, you avoid the hassles of tracking why an employee is out, and logging the missed day into one system over another.
Plus, your managers are able to demonstrate trust in their employees.
Your employees are adults — is it really important whether they took the day off because they were actually sick, or because they simply needed a day…
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