Free Essay

Paid Time Off

In: Business and Management

Submitted By cyfsyz
Words 1288
Pages 6
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 the work done. It also can be considered as a key selling point for the current and potential employees, and a way to build loyalty to the organization and engagement among workers (Sammer, 2014). In addition, the unlimited PTO policy extends employees a certain degree of trust, because the unlimited PTO relies on employees to take time off within reason. It is says that employees in high-performance organizations respond to that trust by carefully planning how they will take time off and still complete their workload (Griswold, 2013).
Thirdly, company can use the unlimited PTO policy for recruiting. Unlimited PTO could be seen as a “talent acquisition tool”. The benefit is extremely attractive to potential hires. It is also a compelling benefit for many workers. The impact can last long after recruitment. A 2012 survey of 2,094 adults sponsored by Ask.com found that 69% would be more inclined to take a new job if the company offered unlimited PTO (Sammer, 2014).
The last advantage is that the new policy could save company’s money and time. The unlimited PTO policy saves the cost of tracking and managing company’s PTO schedule. It also eliminates the liability and unexpected expense of paying out accrued and unused vacation days when employees leave. Some employers with unlimited PTO policy point to the administrative time saved because HR staff no longer has to track and police the use of accrued vacation time for each employee. Ask.com calculated that its unlimited PTO policy saves 52 hours a year in administrative time (Sammer, 2014).
One the other hand, there are also some disadvantages of the new policy. First of all, it can be hard to implement fairly. The biggest stumbling point with unlimited OPT policy is ensuring that all employees are given equal opportunity to take their time off. The obvious problem is that everyone can’t be out at the same time. If we want to implement the unlimited PTO policy, we need strong managers who can juggle a vacation schedule that is fair to all and effective for the business (Griswold, 2013).
The second problem with unlimited PTO policy is that many employees are skeptical of such policy and they don’t take advantage of it. The typical U.S. employee with paid vacation time took just a little more than half of his or her allowed time off in the previous 12 months, according to an April 2014 Harris survey conducted for Glass door. Just a quarter reported taking all the time off given to them, while 2 in 5 said they had taken 25 percent or less of their available time off (Milligan, 2015). For these employees, they may have the perception that when say “unlimited vacation”, it really means that there is “no vacation”.
Finally, the most serious and important thing is that using the unlimited PTO policy would have potential for employee abused. If an employee chooses to abuse the unlimited PTO policy, it can be difficult to terminate the employee for absence because he or she is technically allowed to take that time off. The possibility of employee abuse exists, but there are ways to curb it. For example, we can limit how much time off employees can take at once, implement companywide systems requiring preapproval of vacation time, and ensure fair and equal treatment across the board. Establishing and reviewing performance goals can also help mitigate this challenge (Unlimited, n.d.).
According to the analysis, I would suggest our company try the unlimited PTO policy. It seems that implementing the unlimited PTO would get more benefits than the traditional Caveman-like PTO policy. Although it has some disadvantages, we still have some practices to solve them as mentioned above. It seems like to add some limits to the unlimited PTO would bring a better performance of it. For example, have an established review process to track performance and goals before implementing unlimited PTO. Besides, to reduce abuse of the system and minimize the impact on the rest of the team, PTO should be approved in advance by the manager, with the exception of calling in sick or for another emergency (Unlimited, n.d.).
Considering we are young both the company founded 5 year ago and our employees who’s an average age is 27 and no employees over the age of 38, we can probably adopt the unlimited PTO policy quicker. From“2015 Workplace Flexibility Study”, we can know that that younger generations benefit more from their flexibility program, just like the unlimited PTO policy, than older generations (The 2015, 2015).
In addition, our company wants double in size and revenues over the next two years. The unlimited PTO policy is really a helpful and good factor for our goal. The unlimited PTO policy can be a powerful recruiting tool. A 2012 survey of 2,094 adults sponsored by Ask.com found that 69 percent would be more inclined to take a new job if the company offered unlimited PTO (Sammer, 2014). The 69% of top benefits organizations use their flex programs as a recruiting tool and 54% said that their programs positively impacted their recruiting (The 2015, 2015).
At last, the key to getting an unlimited PTO policy to work is to create the right culture. That means setting a standard of mutual trust, where both worker and employer trust each other not to abuse the system (Milligan, 2015). Because of our dynamic open operating culture and pays our talent above the market, we are an ideal candidate for this kind of leave plan, which an organization has a culture of trust and responsibility with employees who can effectively and independently manage their time to produce high-quality work.
Unlimited PTO policy is becoming increasingly prevalent and it is worth considering. However, switching from a traditional vacation policy to unlimited vacation can be tricky. It’s always difficult to be the one extending trust, hoping employees will believe your act to be sincere and reciprocate. (Burkus, 2015) Therefore, we need to do some preparations if we want to implement it, such as cultivating trust, setting goals, and planning ahead. Good preparations will bring good results in the unlimited PTO policy, which would drive staff engagement and overall firm performance.

Similar Documents

Premium Essay

When Has Hard Work Paid Off for You?

...that Voldemort is back again. Each "Harry Potter" film has a few things that make it particularly memorable and "Goblet of Fire" is no exception. Years down the road I remember this movie for two main scenes. The first is the dragon challenge in the Tri Wizard tournament. The dragon effects are spectacular and the scene where Harry tries to fly and escape it is as exciting as any action scene in any movie . They really came up with a nice design on the dragon. The second scene I remember is the underwater challenge where Potter faces off with the Mer-People. They gave mermaids a horrific new design and a unique shark-like tail. There were also a few cringe-worthy moments. When Fleur Delacour and her fellow French students enter Hogwarts, they do this silly little dance and singing that comes across as a bit odd. There's also a scene where Moaning Myrtle flirts with Harry. It's funny at first but drags on for an uncomfortable amount of time to the point of being creepy. Also, when Voldemort is first shown, he's a withered up, freaky looking baby-thing that looks like a bad rubber puppet. It really hurts any intimidation built up by the character up to that point.There are other moments here and there, but overall it's forgivable. I enjoy watching the movie as it teach me lot of things.One, values of friendship. Ron and Hermione are there for Harry, to help and support him.Harry also is a responsible person. For example, in the second task, Harry saves Ron and Grabielle,......

Words: 596 - Pages: 3

Premium Essay

Case Study: Has Restructuring Paid Off at Procter & Gamble?

... Case study 1: Has restructuring paid off at Procter & Gamble? Procter & Gamble (P&G), formed by William Procter and James Gamble in Cincinnati in 1837, is one of the oldest global companies. Its famous brands include Tide, Pringles and Crest. For much of its history, the company has been innovative in producing new consumer products and new marketing techniques, such as the soap opera. However, despite its record of reliable profit growth, by the 1990s P&G had become weighed down by bureaucratic hierarchy. According to Richard Tomkins: ‘the company became formula-driven, risk-averse and inbred. Even the smallest decisions had to be referred to senior management. Individuality was frowned upon: employees learnt how to write memos, how to speak and how to think’ (Financial Times, 12 June 2000). Times became harder for the well-known brands, which were losing sales to copycat products and supermarket own brands. The big supermarket chains, such as Wal-Mart, grew more powerful and were able to demand lower prices from manufacturers. In a restructuring in 1990, P&G’s chief executive closed 30 plants worldwide, cutting 13,000 jobs. This move brought down prices, but damaged employee morale and adversely affected product innovation. In 1999, a new chief executive, Durk Jager, took radical measures to dismantle the company’s multilayered bureaucracy. Aiming to recreate entrepreneurial spirit, he took power away from country-based divisions and created global product managers,......

Words: 697 - Pages: 3

Premium Essay

Paid Search

...Humble beginnings: A single fruit stand located on the corner of 3300 South and Main Street in 1932 was the first Harmons, at the time it was called “The Market Spot.” Since then Harmons has grown to sixteen stores. The Harmons family continues to flourish with the finest and freshest products, local partnerships and unequaled customer service. In its infancy Harmons was the only grocer to remain open 24 hours, 7 days a week that carried fresh produce along with grocery items. The Bob and Randy faces of Harmons that we know today are the third generation of Harmons, grandsons of the founders Jake and Irene Harmon. Through the generations and growth, Harmons has remained true to its vision, mission and values. Stated on the Harmons homepage the values of Harmons are integrity, community, tradition, innovation and quality. Its mission is to value its associates and exceed customers’ expectations. Target Demographic: Although Harmons welcomes all, our marketing is directed to Females age 21-49, married, with a household income of at least $50,000. Competition: There are many different grocers located within Utah, many being national chains with very large advertising budgets. So the competition for price, location, and market share is fierce. Harmons desires to place its self between Smiths for size and convenience and Whole Foods organic and whole/healthy Appeal. The Problem: For many years, Harmons has been a local grocer that has announced its weekly Ad......

Words: 1884 - Pages: 8

Premium Essay

Paid Time Off (Pto) Policies

...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......

Words: 1738 - Pages: 7

Premium Essay

Tax Treatment When Employees Surrender Paid Time Off to Benefit Others

...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...

Words: 360 - Pages: 2

Free Essay

Getting Paid

...happiness,” I have heard this time and time again. My response to that quote is, “Well I’m broke, unemployed and nowhere near being happy.” It was time to change my situation and find my happiness. This is my story of why I’m attending college. Growing up I was instilled by my parents that you have to have money to get what you want. In order for that to happen I needed to work. I started working at the age of 10 years old, being a janitor at my father’s office. Going to school and working is all I’ve done from then till now. After high school I knew that you needed a degree to get those big paying jobs. So I enrolled in college, in doing so I was amazed at how much it cost to go to college. This led me to working four jobs to pay for school. My third year in college I decided to make a change, so I joined the military. The fact that the military would pay for my college, after I finished serving, helped make that decision. Being out of the military and living back in Brownsville I did not want to become another statistic (working for minimum wage and stuck living in Brownsville). I then spoke with my Veteran Representative and was told to go back to college. I responded with, “I don’t want to back to school.” That is when my Veteran Representative informed me that I will get paid to go to class and be able to earn a degree while attending. Fall semester of 2013 had started and I was now a student attending the University of Texas at Brownsville, getting paid to sit in......

Words: 369 - Pages: 2

Free Essay

Should College Athletes Be Paid?

...Should College Athletes be paid? What really is the true definition of an amateur? The true definition is a person who engages in a pursuit, especially a sport, on an unpaid basis. If this is the true definition then why are the schools paying their athletes to come and help bring the attention there school. I believe if this is going to happen, they need to do it equally and give the athletes what they are deserving of. Many athletes are giving their health and stability to help make their colleges revenue. I believe the only thing that is standing against this becoming the future instead of just an idea is the men at the corrupted NCAA (National College Athletic Association). I think the NCAA and the athletic boards throughout the United States are corrupt and are money hungry. However, not every collegiate sports bring in the revenue such as football and basketball do for their universities. So if college athletes were ever to be paid it would be because of these sports. Mostly, as the U.S. News reports that the NCAA brings in more than 1 billion dollars from the NCAA Men’s and Women’s basketball tournaments (U.S. News), where does the money go for the athletes who bring them such wealth? It ends up into to the hands of the men and women that have enough money than they can handle. Which is not setting good examples for their athletes that they are in charge of. If they NCAA truly wants the amateurism to stick throughout time and not have to pay their athletes,...

Words: 802 - Pages: 4

Free Essay

Should College Athletes Be Paid

...Should College Athletes Be Paid? Raymond Allaire English 102 Fall A Group 10 September 7, 2014 Should College Athletes Get Paid? Many football fans are aware of the former college football star Johnny Manziel, now an NFL quarterback for the Cleveland Browns, or they know him by his moniker Johnny Football, the first ever Freshman Heisman Trophy winner. Following his Heisman Trophy and becoming one of the most renowned college athletes of all time, the seemingly untouchable Johnny Manziel was believed to have signed and then sold his autographs for money. Texas A&M raked in 740 million dollars last year and some believe a huge chunk of that came from Johnny Manziel being the exciting attraction and draw that he is. So doesn’t he deserve a little compensation for doing what he does when the pros get paid for similar exposure? For the past few years universities have been banned from bowl games, had wins taken away, and scholarships stripped as the result of a handful of players accepting "gifts" from the aptly named boosters. Should college athletes be paid as a reward for risking possible injury and potentially ending their athletic pursuits as a result, all in the name of university revenues? College athletes deserve to share in university revenues because the university benefits from them, they should be able to pursue endorsement deals if offered, and because they are risking personal injury should be afforded some degree of insurance or reward. Adrian......

Words: 1039 - Pages: 5

Premium Essay

Should College Athletes Be Paid

...Should College Athletes Be Paid In 2013 the NCAA made 912.8 million and 85% of that came from the division I men’s basketball tournament as you can see college sports is very popular in the United States but who really wins? The average division I football player spend about 44 hours per week to football with practice and other sport related activity now mind you this is a college student. College student across the country are given homework and are expected to study for test and be prepared for class when need be so as you can see the athlete doesn’t have lots of time to spare for like working a job. Teams travel to different parts of the country to play sports against others college teams and we all know how hard travel time can be now if I’m not mistaken in this country you have to have some kind of income to make ends meet. The NCAA make all this money while the athletes in which they make the money off of has to travel and dedicate most of all their time to the sport they play. If a student can’t work a job how are they supposed to take care of themselves many student go without eating a hardy meal or having the basic needs to survive yes they may have a dorm room and a cafeteria lunch but your taking about athletes most of which are big human beings that need to eat. The NCAA make money off these kids’ jerseys, video games and autographs but the student is not allowed to take money or profit off anything while not working a job. Many people say well the......

Words: 620 - Pages: 3

Premium Essay

Why Athletes Should Be Paid

...Shydarrius Jackson Mrs. Keel English 1101 4 December 2014 Should College Athletes Be Paid? College sports is one of America’s biggest industries. It is an industry that brings in almost 4 billion dollars every year to the NCAA (National Collegiate Athletic Association). The NCAA is not the only one profiting from this large industry. TV networks like ESPN and CBS, retailers, and of course universities make millions each year because of the work of college athletes. It seems that everyone is profiting off the college sports industry except for the ones who are actually performing. College athletes are not being compensated for their hard work and diligence in this highly profitable market industry. While some college athletes get scholarships, which are renewed each year depending on the athlete’s performance and usefulness to the team, that is still not enough to meet the needs of the athletes. Also these college athletes cannot profit off their marketability and their name. College athletes are not allowed to receive anything of monetary value in exchanged for autographs or memorabilia. Every year, thousands of student athletes across America sign the National Collegiate Athletic Association’s Form 08-3a, the “Student-Athlete” form, waiving their right to receive payment for the use of their name and image (Infante et al). However, retailers and college universities make millions off these athletes with university apparel with the athlete’s number on the......

Words: 2865 - Pages: 12

Free Essay

Should Collage Athletes Be Paid

...four games shown in prime time, including three on non-holiday weekdays Players have an absolute right to be envious and feel exploited. The age-old rationale that the student-athlete's "free education" is equivalent in value to his athletic labor doesn't wash anymore. It's not equivalent. The national average graduation rate is 55 percent for Division I-A football players, according to the federal government's calculation. However, many of the biggest programs struggle to meet the average. Here are a few examples: Texas, 29 percent; LSU, 37 percent; Florida, 42 percent; Alabama, 47 percent; Ohio State, 49 percent; and USC, 52 percent. Clearly, a significant number of football players aren't receiving the benefit of the bargain of this "free education." The mandatory and "voluntary" workouts are often at odds with obtaining that "free education.” (1 & 1.1) Athletes have been pouring their hearts out day after day, Week after week putting their health at risk playing these sports. Television contracts and shoe deals the athletes endorse for the college is really big for the collage, An athlete plays the game simply because he loves it. There are certain colleges where athletics are a key source of their income, and that’s something that attracts other athletes to their college. For some universities hey rely on their athletes to help the popularity of their school name. College athletes are supposed to be the best at that level. They should be paid. "Exploitation by......

Words: 1979 - Pages: 8

Free Essay

Are Foootballers Paid Too Much

...Are footballers paid too much? Football is now a multi-billion pound business it generates serious debate when it comes to money and most often when it comes to player’s pay. In this essay I will give views of both sides of the said argument above and will show just why people feel so strongly about how much money footballers earn. I will also give a conclusion on my personal beliefs of this. Many people around the world have a vast belief that footballers are paid far too much amounts of money, with players like Cristiano Ronaldo, Yaya Touré and Lionel Messi earning up to £300,000 a week for kicking a ball around a pitch. Whilst it would take around two or three years or even more than that for a teacher, policeman, fireman or doctor to earn this amount. The belief is that every premiership player in big leagues such as the English, Spanish, German and Italian leagues are the ones who earn too much, whereas players in lower leagues such as lower Scottish divisions or even lower English ones earn minuscule amounts. The majority of footballers in the world are on low wages and a large sum of these people are only playing part time but that doesn’t take away the fact that thousands and thousands of players are on big money a week when this money could be used to create more jobs for unemployed and homeless people and to give money to people who actually do the world a service. Such as surgeons or policemen who are trying to do good for the cities and countries in which......

Words: 677 - Pages: 3

Premium Essay

Paid Employment

...the notion that many undergraduate students engaged in paid employment. Furthermore, the essay discusses the impact of this on their experience at university and on their performance. Typically, a lot of college students have part-time job while studying at university. This situation may have positive or negative effects on their scholastic performance. As Applegate and Daly (2006) stated that it is vital to realize that negative results might be happened when higher educational students undertaking paid work. Besides, there is potential advantage for scholars to ameliorate their organisational skills. Understandably, paid employment might have either advantage or disadvantage for undergraduate students. This essay will argue that in general paid work have negative influence on student’s academic performance although it is depending on the age and how many hours they work. Further, it is argue that students are sacrificing leisure time because of having part-time job. The essay also indicates that many factors may effect on student’s performance at university and their experience. There are more and more university students undertaking paid work. The condition might have advantage or disadvantage rely on their age and working hours. According to Mcinnis, James and Hartley (as cited in Applegate and Daly 2006) “students who are first-year in seven Australian universities, found that the percentage of full-time students in paid-employment had grown from 42 percent to 51......

Words: 1295 - Pages: 6

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. If the have big number of employees that have different races, religions and cultures, they should expect a big number of PTO requests for religious......

Words: 558 - Pages: 3

Premium Essay

Should College Athletes Be Paid

...hjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm Composition II Research Paper Should College Athletes be Paid? 2/23/2012 Syid A. Price | College sports have come a long way over the years. It is no longer just about boosting moral or Saturday entertainment for the college and/or university residence. Sports as a whole have become more than just entertainment, it is a business and college sports are no different. Schools earn money through everything from merchandise to concessions and everything in between. The student athletes receive zero percent of these earnings and are told to simply except their scholarship (free education) as compensation. I can fully understand why a free education should give a person little to complain about, but the closer you dig in to the matter you see why this may not be sufficient or fair. These......

Words: 2119 - Pages: 9