More and more these days employers are implementing a PTO program for their employees. PTO, or Paid Time Off, benefits is a consolidated way to combine traditional vacation, sick leave, and personal leave benefits into one. In fact, more than 40% of employers now how have a PTO program as opposed to tracking each individual benefit separately. So why would an employer implement a PTO program for its employees? Here are some of the pros of having a PTO program”
- Flexibility – Employees like the flexibility of a PTO program as they can tailor their paid time off to their needs
- Transparency – Employees are no longer incentivized to lie about being sick and skipping work. Anytime an employees misses a day, it eats into their PTO hours. This creates more transparency between the employer and employee.
- Efficiency – Employers can now simply track hours when an employee is off and not worry about separating the hours into three different buckets
However, there are some things to think about when trying to start a PTO program. Here are some of the cons:
- Higher Utilization – Employees are likely to use all their PTO hours, whereas they may not have with sick or personal days
- Illness – employees may come to work sick as they don’t want to waste their PTO hours
- Liability – In certain states, like California, PTO hours must be paid out upon separation of employment
Depending on your company goals and culture, PTO programs may be a great fit to align worker satisfaction and productivity. Call or email us to learn more.