...To change the Caveman-like policy on paid time off (“PTO”) to the new unlimited PTO means to eliminate “vacation days” and “sick days” or a specific number of days given to employees to take off each year. Instead, company would allow employees to take as much as they need without being docked any pay. Before moving on to choosing the more suitable PTO policy, we do a research and analysis to have a better understanding about the new unlimited PTO policy. On one hand, the new unlimited PTO policy has some advantages. First of all, this new PTO policy would let employees recharge. The unlimited PTO policy allows employees to schedule in week or two-week-long trips that might not be possible under traditional PTO policy that now is being implemented in our company. The unlimited PTO is a good way to incentivize employees to take the break that could bolster their work output (Griswold, 2013). Studies have shown that people have limited attention and that job performance is improved by both short and long breaks. Indeed, more than 90% of HR professionals believe that vacation improves wellness, morale, performance and productivity, according to the Society for Human Resource Management’s (SHRM’s) 2013 Vacation’s Impact on the Workplace survey report (Milligan, 2015). Secondly, by implementing the unlimited PTO policy, company would have a more engaged workforce. Management is trusting employees to manage their own time in a way that serves their personal needs while still getting...
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...systems separate time off into vacation, sick leave, personal leave, and other types of leave. In contrast, paid time off (PTO) banks typically combine all time off benefits into one cumulative bank of days which an employee can draw upon for any need. The delineations of such plans vary by employer (Lindemann & Miller, 2012). In an organization, employees may receive time off for as compensation benefits. This may include sick leave, personal leave, vacations, holidays, etc. Different organizations have different PTO policies. Paid time off can be defined as any time that is not worked, but is paid. Although these plans are costly to companies, they view these plans as employee friendly. Companies try to offer the best plans, which are very competitive in attracting and retaining a talented workforce (Smith, 2012). Most employers prefer to come up with paid time off plans. This creates a flexible arrangement that allows the employee to use his/her off days at his/her discretion. The amount of days off accumulates through the years of service, and his/her position in the organization. Some companies allow their employees to carry their unused leave days for the next period. Some companies pay cash for their employees leave days while others insist those days to be taken as specified in the employment policy. Sick-leave programs provide short-term insurance to workers against loss of wages due to short-term illness. In 2011, 37 percent of U.S. firms offered paid sick-leave benefits...
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...In the wake of hurricane Sandy many people were forced to take time off work in order to get their personal lives back in order and in many cases the time that was taken off exceeded their paid time off. This prompted many employers to create PTO-donation and leave sharing programs in which employees could donate the pay from their PTO to people in need. The question then came up as to how this donated compensation should be taxed. The IRS ruled that in most cases the employee who is donating the PTO must include the amount donated as compensation income. Because the donation is compensation income it is still subject to FICA and state/federal income taxes. There are a few ways these taxes may be paid; by the employee resulting in less cash for them, my the employer costing them money, or by taking it out of the donated amount resulting in a lesser donation. Because the PTO is being donated to a charitable organization on the employees behalf the employee is able to take the amount donated as a charitable contribution deduction on their tax return. Employees who do not participate in the donation program are unaffected by their choice not to participate. This is because of the doctrine of constructive receipt does not apply to them. Basically because the payments are not being directed to the charitable organization the employee is receiving the funds of their PTO themselves and will have to pay their own taxes on their own if they choose to use the money. Employees who...
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...Case Study – Paid Time Off Policies B6032 Human Resource Management & Talent Development Courtez Kirkwood Argosy University Paid time off is awarded to those that meet the selected criteria. Usually this is by being employed, attendance at work and working over time. Merging two companies with two different PTO policies is a difficult task as ultimately; there must be one newly created policy for all employees to follow. In addition, HR will need to further research each company for information to determine the newly formed paid time off policy once the companies have merged. Length of Employment * Usually it is important to know how long an employee has been with the company. Paid time off is accumulated over time and the length of an employee at a company can really alter their paid time off. This information is important to make sure paid time off is given fairly but also to protect the company from people who join the company just to receive paid time off. Attendance * Employees work different hours throughout the day, week, month and year. Some employees are required to work 40 hours a week; some are required to work more or less. This information is needed to help define the paid time off policy and help narrow down the qualifications Employee type * In most companies there are full time employees whom are entitled to all benefits and incentives. There are also outsourced and contractor employees within a company. The different types of employees...
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...make employers provide paid vacation time, paid Holidays, paid maternity and paternity leave. For large organizations Human Resource departments have had to step in and provide a benefit package because of this (each benefit package varying form organization to organization). Now I think we know that organizations only have one on their agenda mostly, profit. Now why do you think the organizations would even allow the Human Recourse programs to devise such programs (when they clearly cut in to profits)? The Human Resource departments know to compete with other organizations, not just in the United States but with other organizations across the world. They have to provide the correct satisfactory incentives such as: paid vacation days, paid holidays, paid sick days, paid maternity and paternity leave....
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...Bole, Director of Human Resources Subject: Recommend a bank paid time off program This year workplace flexibility ranked as the primary motivator cited by employers for implementing a paid time off bank leave system for employees (WorldatWork). At Global Gadgets we are committed to providing flexibility within our employees life’s. Our goal is to meet and exceed their expectations on a daily basis. Despite this goal, we currently provide our employees with independent sick, personal, and vacation day programs. Based on a WorldatWork report, having a concrete definition between compensation programs greatly hinders the ability for employees to use their paid time off in a way that is beneficial for them WorldatWork). If we truly want to live by our company’s values and provide a workplace based on employee flexibility, we should consider implementing a paid time off program that combines sick, personal, and vacation programs. The use of this type of program will empower employees to choose how they use their paid time off versus our current time off programs that allocate a specific amount of time per category on an annual basis. This ultimately will lead to increased worker satisfaction, which in turn can lead to increased productivity. The employees would not be alone in reaping the benefits from this program. Currently our company’s three separate programs require three times the manpower and time in order to administer, manage, and track. A survey done by Hewitt’s...
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...their life: stress. What is the one thing that Americans’ have in common that causes them the most stress? It’s something that takes up a majority of peoples’ time and puts food on the table. That one thing is work. Work is a large part of why people in the United States and all across the world want to pull out their hair and call it quits. An enormous aspect of why work might be stressful is caused by the actual work environment. You can tell the difference between stress levels when walking into a newspaper HQ and walking into a jewelry store. An article called “Toward Human Sustainability: How to Enable More Thriving at Work” talks about how to create a less stressful work environment. The article gives managers and companies detailed instructions on how to lower stress and what its positive outputs in the workspace are. An issue that works against lowering stress in the workplace is the fact that Americans just are not taking days off from work anymore. A website by the name of “Project: Time Off” creates blog posts and detailed analyses on what exactly happens when Americans do not take time off. One of these analyses include “Overwhelmed America: Why Don’t We Use Our Earned Leave?” This analysis includes abundant data and explanations on how the relationship between worker and company are when relating to days off. Creating a leisurely and stress-free work environment should be the end goal of all future managers. Many college students are studying to become managers or...
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...Introduction: When an organization is recruiting and wanting to keep that employee for a long time in that company, then the benefits it is offering such as employee leave and for how many days it is willing to pay for personal leave is very important. Employers offer employees leave in many forms such as vacation, sick time, personal time, paid time as a part of benefit package. These policies really make a difference. They develop a positive working relationship between employee and employer and also increase the commitment of the employee towards the organization which leads to more profits, promotes good working habits and help human resource manager to easily keep track of the employee attendance. This research paper is about paid and unpaid personal leaves for employees. These leaves are not under leave of absence laws. They are not required by the federal law to be granted to the employees and they are purely given by the company as a benefits package or bonus. In the body of the paper, I will discuss about the definition of these days, main goal of these leaves, number of days, rules and regulations on how to use these days, a new policy being introduced in many organizations known as PTO (Paid Time Off Policy) to benefit employees and managers in the place of paid personal leave, benefits and disadvantages. Paid Personal Days Definition: These are the days paid by the employer to the employee as a part of comprehensive benefits package or given at the request...
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...Regina Vazquez BUSI 645 Individual Assignment #3 November 20, 2014 Discretionary benefits are an important commodity to both employees and employers. Today, it is expected to have some type of leave program and companies, although not required by law to have them, use these benefits to attract the best talent. They are also a way of rewarding good performance. Employees’ use of paid time off gives them the chance to rest and relax without having to worry about decreased pay. They then come back recharged and ready to excel, which benefits the company. “Most firms that provide high-quality benefits do so because they think it is the right thing to do and allows them to maintain a competitive edge with improved recruitment, retention, productivity, and morale” (Perrin et. Al, 2007, p. 1098). The problem lies with having a program that is flexible for the employees but yet doesn’t interfere with company operations. Abuse of leave programs creates an environment of mistrust and unexpected absences can cause delays and more work for co-workers. Firms must consider the many factors, such as number of employees, ages, and the type of work, when deciding what type of leave program to have. There is not a one size fits all design. For the employer, their ultimate goal is to have a leave program that prioritizes the organization’s goals first. Most companies have a traditional leave program whereas leave is separated into vacation days, sick days, and personal days. Vacation...
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...University of Redlands Makebra Bridges – Human Resources Management Because of limited resources, many small businesses have difficulty recruiting & retaining top talent. In this paper, I will discuss how companies use indirect-financial incentives to gain a competitive advantage. How Small Businesses Provide Competitive Compensation Packages in a Global Environment. Table of Contents Introduction………………………………………………………………………………………………………….. 2 Salary vs. Compensation ..………………………………………………………………………………….. 3 Indirect Financial Payments ……………………………………………………………………………….. 5 1. Employer Match Incentives 2. Cash Rewards 3. Flexible Hours 4. Tuition Reimbursement 5. Paid Time Off Employee Rewards …………………………………………………………………………….……………… 12 Conclusion ………………………………………………………………………………………….……………… 13 INTRODUCTION In today’s workforce, small businesses—companies with 100 or less employees—are making a BIG impact. * There are more than 23 million small businesses in America--accounting for 54% of all U.S. sales. * Since the 1970s, small businesses have provided 55% of all jobs and 66% of all new jobs. * The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail sales and provide jobs for some 8 million people. * The number of small businesses in the United States has increased 49% since 1982. * Since 1990, as big business eliminated 4 million jobs, small businesses added 8 million...
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...Executive Summary Now day’s compensation strategies are charged with supporting the company’s mission and objectives through the development and implementation of strategies, which ensure that valuable workers feel secured at their work place and rewarded for their accomplishment. A successful company focused compensation strategy including tuition reimbursement, bonus and paid time off. They are valuable programs and creating attraction process for most common compensation programs. These strategies are useful tool to improve employee satisfaction and work ethics. But, used incorrectly, it can cause some financial damages and relation disconnect between company and work forces. Bonus, tuition reimbursement and paid time off can be created to reward individual performance which is related to company’s mission and building trust in the organization. Company can use these strategy tools to communicate a fresh commitment from the employer to the employees and remind workers how much they are appreciated. The purpose this report is to determine the proper amount of compensations gets applied for different jobs in the organization. The organization because persuading the incorrect determination can cause bad implications for the company and damaging the work ethics of the employee organization as well as the employer’s power to hire qualified employees. Another purpose of the research report Well treated employees make a major role in a company’s power to improve its product...
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...The Fair Labor Standards Act faces many issues surrounding compensatory time. The first issue surrounds the usefulness of the time off plan. The Department of Labors’ Field Operations Handbook 32j16b suggests that to comply with the FLSA and to continue to pay a fixed wage or salary each pay period, even though the employee works OT in some week or weeks within the pay period, the employer lays off the employee a sufficient number of hours during some other week or weeks of the pay period to offset the amount of OT worked so that the desired wage or salary for the pay period covers the total amount of compensation, including OT compensation, due the employee under the FLSA for each work week taken separately. The plan may use a standard number...
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...below. 1 statutory responsibilities and rights of employees and employers Rights at work Your rights at work will depend on:- Your contract of employment cannot take away rights you have by law. So if, for example, you have a contract which states you are only entitled to two weeks' paid holiday per year when, by law, all full-time employees are entitled to 28 days' paid holiday per year, this part of your contract is void and does not apply. The right you have under law (to 28 days' holiday in this case) applies instead. If your contract gives you greater rights than you have under law, for example, your contract gives you six weeks' paid holiday per year, then your contract applies. There are special rules about the employment of children and young people. Statutory rights Statutory rights are legal rights based on laws passed by Parliament. Nearly all workers, regardless of the number of hours per week they work, have certain legal rights. There are some workers who are not entitled to certain statutory rights Sometimes an employee only gains a right when they have been employed by their employer for a certain length of time, and when this applies, the length of time before the employee gains the right is listed below. Unless you are in the group of workers who are excluded. you will have the following statutory rights:- • the right to a written statement of terms of employment within two months of starting...
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...Did you know college athletes that go to Division one make their school millions of dollars? College athletes should get paid for playing on their athletic team. Some people say the athletes shouldn't get paid because they get scholarships. Athletes should get paid because they don't have time to get a part time job, they don't have time to form relationships, and they make money for the college. College players don't have enough time to get a part time job. Did you know that college players spend 43.3 hours a week dedicated to their sport (Jacobs). That's almost the amount of time someone works a week for their job. Those 43.3 hours are distributed over training sessions, games, travel and other required sessions, and they don't get paid...
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...giving them loans. If the loans are not paid back, problems arise for many people. People who do not pay back their college loans in a timely fashion usually end up being lazy and irresponsible. These people also have bad credit scores and leave future college students unable to get as many college loans. All college loans should be paid back at least partially within 5 years after receiving a degree or wages would be garnished so money is available for other people to get college loans. People learn responsibility by paying loans back. Following through on an agreement is very important. People work harder to get jobs straight out of college if they know they have to so they can start to pay off their loans. Many people do not feel the need to do a task unless they have a deadline. This is how it is often with paying off student loans. These people need to become mature adults in the world and having the rule of all college loans being paid off partially can help make this happen. One also becomes responsible when paying off his or her college loans by thinking about how much he or she...
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