Paid time off (PTO) has quickly become one of the most popular employee benefits. A study conducted by TSheets found that 87% of US employees believe employers should provide PTO. Having the ability to offer flexibility in the workplace can be a great way to attract and retain top talent. However, the most common pitfalls occur when there’s an imbalance. Depending on how a PTO policy is put in place, these policies run the risk of benefiting employers more than the employees.
The pressure to be the first one in and last to leave, combined with the complexities of time-off accruals, limited-time policies, and unused vacation days have created a gray area for this crucial benefit. But with thoughtful paid time off initiatives, all parties are able to reap the rewards.
With the appropriate structure in place, PTO policies increase trust and engagement throughout an organization. The challenge: how do you maximize your PTO policy to benefit both the employee and employer? This presentation will:
- Highlight best practices to ensure a successful PTO policy that sets your company apart.
- Discuss ways your organization can revamp an existing policy.
- Share how to measure the success of your PTO policy.
1. How to Craft a PTO Policy
That Works for Everyone
2. Topics
1. Unlimited PTO
2. Reduced Seasonal Hours
3. Paid Leave
4. Remote Work and Flexible Hours
5. Time Off Compliance
6. Q&A Session
7. SHRM and HRCI Code
3. Presenters
Jessica Greene
Accounting Programs &
Education, Intuit
(Moderator)
Robin Wilson
Senior Global Time
Away Program Manager,
Intuit
Michael Goldberg, CCP
Manager of Total
Rewards, Namely
9. Employee Motivation & PTO
Top 5 incentives that motivate employees to work harder:
1. Flexible work schedules (76% want this, only 16% get it)
2. Performance-based annual raises (73% want this, only 10% get it)
3. Discretionary bonuses (66% want this, only 7% get it)
4. Recognition awards/prizes (63% want this, only 7% get it)
5. Option to work from home (57% want this, only 8% get it)
13. Unlimited PTO
● Flexibility
● Conveys trust in employees
● Increased productivity
● Relieves end-of-year rush
Pros
● Underutilization of vacation days
● Abuse of the system
Cons
Unlimited policies are designed to give employees a limitless number of vacation days.
14. Reduced Seasonal Hours
● Business slows anyways
● Encourages efficiency
● Increases employee engagement
Pros
● Overutilization
● Underutilization
● Hourly works
Cons
Reduced seasonal scheduling policies shorten office hours for a clearly defined period.
15. Paid Leave
● Supports work-life balance
● Increases loyalty and retention
Pros
● Not all laws are actionable
Cons
Paid leave occurs when employees are permitted to take time off for a special circumstance
and still receive pay during the leave period
16. Remote Work and Flexible Hours
● Flexibility
● Performance over “facetime”
● Increased employee trust and loyalty
Pros
● Less visibility into employee time
management
● Limited communication
● Remote employee inclusion
Cons
Many companies employ workers who work either from home or in remote locations, some
companies even having fully remote teams.
23. Compliance
● Vacation pay statuses - no state requires employers to offer paid (or unpaid) vacation, but when paid
vacation is available, those payments may be restricted by state labor and employment statuses.
● Use-it-or-lose-it vacation policies - state statutes often do not address whether employers can require
the forfeiture of accrued vacation time that is not used by a specified date.
● Payment of accrued, unused vacation on termination - state laws vary on this topic. The following
states require payout dependant on various factors (accrued vacation versus all vacation time): CA, IL, IN,
LA, MD, MA, MI, MO, NE, NY, NC, ND, OH, OR, RI, WV, WY
No federal or state law requires employers to provide paid or unpaid vacation time to employees.
24. Compliance
● Subject of collective bargaining - paid (and unpaid) vacation is a mandatory subject of collective
bargaining in a unionized workplace.
● FMLA - FMLA only requires unpaid leave. However, the law does permit employees to elect, or the
employer to require the employee to use accrued paid vacation leave, paid sick or family leave for some
or all of the FMLA period.
● Overtime - employers do not have to count paid holidays, paid time off (PTO), vacation, personal and
sick leave hours taken by an employee toward the calculation of overtime hours because these hours
are not actually “worked” and are therefore not considered hours counted towards overtime under the
FLSA.
No federal or state law requires employers to provide paid or unpaid vacation time to employees.
26. Namely
Time Off at Namely & Intuit
● Unlimited Flexible PTO
Intuit
● Vacation, sick, and holiday leave
● Parental
● Short-term disability
● Family support time
● Birthday leave
● Pet bereavement
Conveys trust and promotes
employee engagement.
Provides employees with resources
for all stages of life.
27. Tips & Tricks
1. Provide recommended guidance on how much time to take off
2. Send reminders to employees when they are close to their vacation maximum
3. Prioritize employee well-being - even over business needs
4. Be aware of both Federal and State programs
5. Openly communicate available time off options to employees
30. Interested in learning more?
Namely is an all-in-one HR, Payroll, and Benefits platform
created to help mid-sized companies build a better workplace.
Namely is used by some of the world’s most innovative and
exciting companies in media, technology, commerce, and
more.
Intuit is dedicated to powering prosperity around the
world with its intuitive web, mobile, and cloud solutions.
Industry-leading products like Mint, QuickBooks and
TSheets help consumers, small business owners, and the
self-employed achieve their dreams. TSheets by
Quickbooks is a top-rated employee time tracking and
scheduling solution that helps small businesses save time
and money on payroll.
31. Resources
1. How Much PTO Should I Give My Employees
2. 2017 HR Mythbusters
3. Building Employee Loyalty with PTO