The U.S. Bureau of Labor Statistics reported that paid leave accounts for 7.4 percent of a business’s total employee costs, making it the fourth-highest cost behind wages, payroll taxes, and insurance. With this much investment in paid leave, developing ways to give employees what they need regarding time off is vital.
Enhancing your company’s Paid Time Off (PTO) policy requires balancing employee needs with business requirements. Here are six ways to achieve this.
Expand the types of PTO beyond just vacation and sick days. Introduce categories like personal, volunteer, or wellness days that employees can use for various reasons without providing specific justifications. This option acknowledges that employees have different needs beyond traditional vacation or sick leave.
Instead of a fixed annual PTO allocation, allow employees to accrue PTO based on their tenure or hours worked. This alternative rewards loyalty and encourages employees to manage their time off responsibly.
Provide the option for employees to take half-days or even hourly PTO. This level of granularity allows employees to use PTO in smaller increments, making it easier to manage their schedules and balance work and personal needs.
Allowing employees to sell back a limited number of unused days for those who prefer monetary compensation can help with significant expenses like Christmas, student loans, or planned medical expenses. It may be more cost-effective to pay out PTO this year than allowing them to use it next year after a pay increase. To manage the Sell-Back administration, offer this during calendar windows once or twice a year.
Implement a donation program where employees can voluntarily donate their unused PTO to colleagues facing personal crises or significant life events. This offering can increase morale in a time of struggle.
Provide a few floating holidays that employees can use at their discretion for religious observances, cultural celebrations, or personal reasons not covered by standard PTO categories.
Remember, effective communication and clear policy guidelines are essential when changing your company’s PTO policy. Solicit employee feedback to ensure the changes align with their needs and expectations while meeting business goals.
Time Equipment Company offers the most advanced accruals engine in the business. Our specialists configure accruals to match your parameters to calculate automatically through our time and attendance software. In addition, these balances can be migrated to your payroll provider to maintain accurate records and compliance.
For more information about Leave Management, contact Time Equipment Company at 800-997-8463 or email@example.com.