Premium Essay

Paid Time Off (Pto) Policies

In: Business and Management

Submitted By PGSwin
Words 1738
Pages 7
Traditional leave 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. However, in many firms such well-intentioned programs have often added to labor costs because of abuse by employees and because of the widespread perception that sick leave is a right and that if it is not used; it will be lost (“use it or lose it”). From the employer's perspective, such unscheduled absences cost between 8 and 20 percent of payroll annually. To...

Similar Documents

Free Essay

Paid and Unpaid Personal Leaves

...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....

Words: 3068 - Pages: 13

Premium Essay

Pto Polcies

...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....

Words: 1699 - Pages: 7

Free Essay

Paid Time Off

...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....

Words: 1288 - Pages: 6

Free Essay

Pto in a Merger

...PTO Benefits Analysis in a Merger Argosy University When two companies have merged, there is more to the deal than just the financial ramifications. Creating a workplace from now two sets of employees is a difficult task. Each company has their own set of policies, procedures, and benefit packages. Implementing a plan to transition the benefits and policies and communicating the details of the plans is imperative to the merger. Although these plans are costly to companies, benefit plans are employee friendly. Companies try to offer the best plans, which are very competitive in attracting and retaining a talented workforce (Society for Human Resource Management, 2008) The more transparency that can be communicated early in the stages of the merger the more successful the company will be in employee retention, loyalty, and buy-in to the merger. One of the benefits that must be reviewed is each company’s paid time off/sick time/vacation time policies. Evaluation of the employee handbooks and policies is important for both due diligence and for developing a plan to integrate employees into the new workforce. Accrued vacation and employee paid time off are calculated differently between Company A and B. Information about employee pay rates and accrual basis are needed. Companies may have had different pay rates for the same job levels (Smith, 2012) so payroll/accounting will have to be reviewed. Also, evaluation of how each company views days off is important....

Words: 1051 - Pages: 5

Premium Essay

Employee Handbook Requirements in the Law

...Nirvana has provided you with this handbook for you to use as a guide and to teach you about our company’s policies, benefits and rules. This handbook will help you help us create a safe work environment as it prepares you to know what to expect as you enter the work environment. This book is intended to give you a general overview of our company’s policies, benefits and rules and therefore is not considered a legal document. Mission Nirvana Boutique offers its clients a one-of-a-kind, personally tailored shopping experience. Our unique line of inventory is not available at any other retail outlet. It is our passion to expose our clients to a worldly array of clothing and accessories as we continue to be the leaders in the boutique industry. Policies Harassment Nirvana will not tolerate harassment of any kind, prohibited by law, including race, color, sex, age, religion, national origin, handicap, disability, marital status, or veteran status. According to the The U.S. Equal Employment Opportunity Commission sexual harassment is defined as: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment....

Words: 1109 - Pages: 5

Free Essay

Stress in the Workplace

...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 to be higher in the business hierarchy....

Words: 2206 - Pages: 9

Free Essay

Business Ethics

...A New Look At Paid Sick and Family Leave at Emerald City Events I am the Human Resources Director here at Emerald City Events, your local event planning company in Seattle, WA. Our company currently staffs 10 full-time employees working 40+ hours per week and 20 part-time employees who work on an as needed basis for event prep and day-of execution. Here at Emerald City Events we strive to create the best possible experience for our clients on their special occasions whether that’s small private parties or large-scale weddings. Our purpose is to exceed the expectations of our clientele, with every event specifically catered to each individual with full effort put in by every one of our staff members to make all of these wonderful events possible. The passion and drive that our employees have is stemmed through the sense of community we have generated here in the workplace and continues to motivate our team on a daily basis. Today, I am here to announce a major innovation to our company that is imitative of the expectations we have for each employee and the culture we have established at Emerald City Events. I am proposing a new and improved paid sick and family leave policy that will be effective immediately for the full-time employees here at Emerald City Events. In this presentation, I will introduce you to the new policy and walk you through the process and terms of the new agreement....

Words: 1710 - Pages: 7

Free Essay

Busi

...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 days are scheduled in advance to ensure employee needs don’t conflict with work related operations. The problem with sick days, as described in the case study, was that employees were abusing those days and using them for personal or family situations....

Words: 1233 - Pages: 5

Free Essay

How Small Businesses Compensation Packages

...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 new jobs. Entrepreneurs and entrepreneurial firms are attributed with a myriad of positive effects. And “while corporate America has been ‘downsizing’, the rate of small business ‘start-ups’ has grown, and the rate for small business failures has declined.” Despite consistent economic growth, most small businesses have one thing in common—very limited budgets. So with limited...

Words: 1880 - Pages: 8

Premium Essay

Paid Time Off

...Paid time off is an important factor to give it an attention and discuss deep discussions between the two companies to be merged and that to know the differences in domestic policies and policies on the subject between the two companies. In the situation to be studied, there is a clear difference in the policies for the PTO in the both companies. The company A has a bigger number of days of PTO than the company B. And this topic should be viewed seriously because that could be a reason for non-completion of the merger. There are a lot of information that should be shared between the two companies to learn the differences in domestic policies and rules on PTO. For example, the current financial situation for both companies and what they expect financially after the merger. The history of the PTO of the employees in the both companies and the number of PTO that each staff member took in the past years in the two companies. Also,The nature of the work in the both companies. For example, the PTO policies in the companies that working in the field of the manufacture of chemicals or nuclear reactors should be more flexible and include more categories than company operating in the field of organizing concerts or an educational company. Another point to focus on, that the amount of of diversity that they have in the both companies....

Words: 558 - Pages: 3

Premium Essay

Motivating Employees

...Case study—Paid Time off (PTO) Policies Gerissa Russell  B6032 BLA Argosy University/Atlanta Harish Chandan September 17, 2014 Case study—Paid Time off (PTO) Policies Identify any additional information you would need to recommend a solution, and explain where you would likely find that information. Communication is all important.    Much communication is needed in a merging procedure internal first and external second.  A go-getting communication plan must be published at the outset and managed throughout the process.  Communication mode and message will vary for different time frames 48 hours, weekly, monthly, and for different target groups. Key customer management.    In order for the M&A to be successful, the smooth handling of ordinary business has to be ensured.  The quality of relations with customers of both the acquired and acquiring. Identify key intangible assets and make plans to retain them early.   As soon as practical, analyze the target company to identify key managers, specialists and knowledge owners.  Who owns the customer relationships, which provides the headship to the team?  These are key people who need to be engaged early to ensure their retention.  What other unknown talent high potential individuals and teams – exist who will provide new value within the merged business?  In a ‘friendly’ merger, gain access to and assess the key people before closing....

Words: 1037 - Pages: 5

Premium Essay

Compensation

...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 quality, services and make a profit, so attracting employees can be a main key to success. Making a decision about compensation is also affecting the organization financial plan as well....

Words: 5183 - Pages: 21

Premium Essay

Creating a Problem Statement

...Creating a Problem Statement Kathy Kudler made a passion of gourmet cooking a reality; she began Kudler Fine Foods (KFF) in 1998. Her vision and mission is to provide customers with the finest selection of meats, cheeses, bakery items, wines, tools, and ingredients in a one-stop shopping experience with reasonable prices. However, according to the strategic plan, Kathy takes on many roles, including human resources. She interacts with the customers and staff but has not thought about future endeavors with the business growing at its current rate. KFF does not have a true human resources department that is an area that needs immediate attention. Kathy needs to think about the future of the business in the event she becomes ill and cannot fulfill her role as the owner, supervisor, product replenishment and inventory control, along with-related human resources issues. Human resources management (HRM) is the process of determining human resources needs while recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals (Nickels, McHugh, & McHugh, 2008). HRM is more than hiring and firing employees; HRM will allow KFF to succeed and grow even more competitive in the specialty food market as well as retaining the employees currently working at KFF. The employees will have the opportunity to grow professionally and personally with the HRM concept becoming a part of the organizational goal. When implementing HRM......

Words: 1135 - Pages: 5

Premium Essay

Incentive Plans

...The majority of incentives are performance-based policies in which workers receive additional cash or benefits centered on a worker’s performance. Raises and Bonuses Most companies will award a base salary increase that is dependent on several factors, including job classification, your individual performance, your company's overall financial performance, and your company's salary structure (Salary.com, 2012). Bonuses and annual incentive payouts depend primarily on two variables: your job performance and your company's overall financial performance. Depending on your job, these programs can vary in complexity and payout (Salary.com, 2012). Each year employee’s at Aetna are given bonuses and raises based on how well the company does. If an employee receives a three or higher on his or her year-end scorecard they are eligible for the bonus and raise. During the month of February employees are contacted by their manager who advises them what his or her bonus and raise will be based on the company’s profits. If the company does well the bonus amounts are high. If the company does not a have a good year the bonus amounts are low or nonexistent. In the three years that I have been working for Aetna, I have received a bonus and raise each year. Team Leader Incentive Plan In the Customer Service department there are incentives for employees. The...

Words: 939 - Pages: 4

Premium Essay

Flex Time in the Work Place

...The definition of flexibility encompasses a wide range of topics such as: • Flextime (compressed work weeks and shift flexibility) • Telecommuting • Paid Time Off (personal days and vacation by the hour) “Business leaders are learning how to position flexibility as a powerful management tool used to accomplish work more efficiently, while caring about the needs of employees and bringing strategic value to the organization (US Dept of Labor)”. Several options which are being used today include a shortened work week and flexible scheduling. The standard five...

Words: 1201 - Pages: 5