Employer Sponsored PTO Days
If you're looking for a way to differentiate your company, as well as a way to attract and retain high caliber employees, then offering PTO (paid time off) in your employee benefits package could just be the answer.
There are numerous ways in which a PTO program can be set up, though, so having access to an advisor that specializes in employee benefits such as paid time off can help to ensure that you're moving in the right direction.
Need to Know More About PTO?
Paid time off is a bank of days from which your employees may draw for sick leave, vacations, personal days, and time that is required for appointments such as doctor visits. Today, many benefits experts agree that offering PTO will surpass the more "traditional" sick time and vacation model.
Although it is not required that companies offer PTO, there are some aspects of this type of program that may be subject to certain state laws and regulations. For instance, there are some states that have laws with regard to how an employer must pay out accrued vacation time when an employee leaves the company. Working with highly knowledgeable benefits specialists like the ones at VANTREO can help to ensure that your company is within such guidelines.
How offering PTO to employees works
Paid time off benefits will typically include a certain amount of time that an employee may use for sick leave, vacation, and other personal days. Often, the amount of time that is granted will be based on an employee's tenure with the firm.
By offering PTO, your business may be able to substantially reduce unscheduled absences by employees. In addition, having this benefit can provide your company with a competitive advantage in both attracting and retaining high caliber workers.
Who is eligible for PTO?
In many instances, all full- and part-time employees may be eligible for a PTO benefit. For example, PTO time can be earned on a monthly basis, and then credited to an employee's PTO "bank" at the beginning of the following month. It is generally required that PTO must be scheduled with the employer in advance - other than in cases of employee sickness or emergency.
Pros and cons of offering PTO benefits
While many employees appreciate having PTO benefits, there are both advantages and drawbacks for an employer that offers them. Some of the key advantages to having PTO can include:
- More Motivated Employees - Often, employees who have access to PTO benefits can feel more empowered, and in turn, more motivated to accomplish work related tasks. This is because they are able to use time that they need to "recharge." In fact, by encouraging the use of paid time off, employee burnout can be significantly reduced.
- Easier Up-Front Administration - In many cases, PTO is also easier to administer than having separate sick and vacation days. And, easier administration can lead to a reduction in employer costs.
- Recruiting and Retaining Quality Employees - Having PTO benefits can also help with an employer's recruiting efforts, as well as in retaining good, quality workers for the longer term.
Prior to moving forward with offering paid time off, there are some important criteria to consider, such as:
- More Days Off - Having PTO as versus separate sick and vacation time may encourage employees to take more days off work. This is because, in lieu of using sick days only when they are ill - and possibly not making use of all allotted sick days - employees may not want to "waste" any of their PTO time.
- Reluctance to Use When Sick - Alternatively, when an employee is actually ill, he or she may be reluctant to use a PTO day, and therefore come to work when they aren't feeling well.
- Communicating the PTO Program - Some employers may have a difficult time in explaining how the PTO system works. So, ensuring that the program is well communicated to the work force is essential.
VANTREO Benefits and HR Services
Today, offering a paid time off benefit to employees can keep companies ahead of the curve in terms of attaining and retaining the best possible hires. When you're ready to move forward with the right PTO benefits, contact us toll-free at (800) 967-6543 or complete this contact form and a VANTREO specialist will connect with you for a complimentary consultation.
Experience for yourself the VANTREO difference!