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Persuasive Memo

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Submitted By drod100
Words 590
Pages 3
To: Alex Daniels, Vice President of Human Resources

From: Matthew 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 Associates found that approximately 11% percent of companies found their traditional time-off programs difficult to manage, track, and administer. In addition, they found that many companies do not fully understand the costs associated with their current compensation programs. In fact, 75% of companies could not even provide an estimated cost of their paid time off programs (Holistic Time-Off Programs). In many cases, this leads to excess costs for the supplying company. Using payroll information from our organization, I estimate that we spend approximately $81 million dollars a year in time-off and administration costs. If this program only saves 5% a year that is still equates to over four million dollars a year.

By offering a combined paid time off program, we can streamline our current operations while affording more flexibility to our employees. This will undoubtedly save the company money in administration fees and manpower while providing the opportunity to increase personnel productivity and overall company satisfaction. With the size of our company, I believe that now is the ideal time to make this change. Please call me at extension 259 to discuss the next steps. I would be glad to discuss the details of implementing this program with you. I appreciate you taking the time to review this proposal and I look forward to your response.

Sincerely,

Daniel Bole
WORKS CITED

"Creating Holistic Time-Off Programs can significantly Reduce Expenses, Hewitt Survey Finds." CPA Practice Management Forum 3.2 (2007): 17,17,23+. ProQuest. Web. 19 Oct. 2014.

Lindemann, Andrea, and Kevin Miller. "Paid Time Off: The Elements and Prevalence of Consolidated Leave Plans." Institute for Women's Policy Research, May 2012. Web. 23 Oct. 2014.

Marshall, Jeffrey, and Ellen M. Heffes. "'Paid Time Off' Area seen Ripe for Savings." Financial Executive 21.5 (2005): 12. ProQuest. Web. 19 Oct. 2014.

Warford, Marisa. "Does Paid Time Off PAY OFF? (Cover Story)." Workforce 93.8 (2014): 26-48. Academic Search Elite. Web. 19 Oct. 2014.

“WorldatWork Releases Paid Time Off Survey.” Business Wire (2014): Factiva. Web. 19 Oct. 2014.

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