A new study published by Mercer and Kronos reports that employee absences cost employers 35% of payroll cost. That’s quite a bit of money for time not spent working. Plus most companies have some form of sick leave, vacation leave, and holiday time not to mention required leaves under FMLA and other federal or state laws so you are paying somebody to track all of this too.
I’m a believer in PTO (Paid Time Off). What do I care as your employer if you need a day off to take the dog to the vet, stay home with a sick kid, need a mental health day or like to celebrate a holiday I don’t know about? Way too much information and the end result is the same, you aren’t working. How about this instead- “All employees receive the following paid holidays (insert the days your company is closed). In addition to paid holidays after the first 90 days of employment employees accrue 10 hours of PTO per month in years 1-3 of employment. Employees accrue 12 hours per month of PTO per month in years 4 and 5 of employment and 15 hours of PTO per month after the fifth year. Employees are encourage to use their PTO in the year earned, however up to 24 hours may be transferred at each year end. PTO balance has no monetary value and will not be converted to cash and paid at termination. (depending on state law). PTO of more than 3 days will required either a two week advance request or if an advance request is not possible an explanation to your manager as to the reason for the PTO.”
I’ve managed both PTO programs only, vacation & sick time off, and a combination of all three- PTO always is the favorite with the employees- AND less abused with frequent unplanned absences, sick people working when they should be at home….and it’s so much easier to track on the HR side.
Join the conversation: Is PTO a good idea?