Do you feel as though your valuable time is often robbed by tracking and monitoring employee absences? You may want to consider replacing your present system with a paid time off (PTO) program.
According to the Society of Human Resource Management (SHRM), PTO is defined as:
Paid time off (PTO) provides all full and [if you choose] part-time staff members with paid time away from work that can be used for vacation, personal time, personal illness or time off to care for dependents. PTO must be scheduled in advance and have supervisory approval, except in the case of illness or emergency. The PTO policy takes the place of sick, absence, personal time and vacation. All time away from work should be deducted from the employee’s PTO bank in hourly increments with the exception of fixed company holidays and time off in accordance with company policy for jury duty, military duty or bereavement.
PTO Programs Must be Well Communicated and Well Managed
Many employers are turning to PTO programs because tracking employee absences, including the reasons for the absences, can turn into an administrative nightmare. Although PTO programs help simplify employee recordkeeping, and also help to reduce vacation and sick leave abuses, they must be well managed and well communicated.
Most employers find that PTO programs are generally easier to track because there is just one number to track—in other words, you don’t have to separately track time for vacation, personal or sick leave. However, there can be a down side to a PTO program that is not properly planned for or handled: Some employees might start thinking that they can use PTO at the drop of a hat and without planning ahead. When last minute PTO requests become excessive, even though the employee has the time coming, you can counsel them on the need to provide advance notice where the absence is foreseeable, which is a key part of any policy.
Compare this approach to the traditional vacation leave programs—employees understand that they are expected to plan ahead and give advance notice. Of course, when employees are sick or have a sick family member to care for or are experiencing personal emergencies, those are different stories.
PTO is a Benefit
With a PTO program, employers should communicate and manage expectations so that employees realize their roles. If employees are allowed to abuse the program, employers will experience problems with their co-workers and customers. As with any employee initiative, it is also important to educate employees by explaining how the program works. Taking these steps will help enlist employee understanding and cooperation. PTO is, in a sense, a gift to employees since employers are generally not required to give paid time off. Employees need to understand and acknowledge their reciprocal responsibilities by not abusing the program.
PTO Program Implementation Suggestions
- To begin implementing a PTO program, you will want to make it clear what the guidelines are; put them in writing. Along with defining the program, you can make sure that the benefits and expectations are detailed in a handbook and/or a separate policy that employees sign off on in writing. You want to impress upon them that they are responsible for following the guidelines, and you want their written acknowledgement.
- If you decide on developing a stand-alone policy, you can include the program details and the acknowledgement in the same document. After the employee signs the acknowledgement, make a copy for the employee and keep the original on file.
- In addition, you can hold a meeting at which time you explain the program, including the benefits, the requirements and how it is intended to be used. Employees will have opportunities to ask questions, which helps ensure that everyone understands.
- Next, you may want to consider requiring that employees submit a written PTO request; perhaps by completing a form. Implementing this procedure sends a message to the employees that you expect their respect and understanding that PTO is a gift. It doesn’t mean that the employee has to explain why they’re requesting time off; it just means that they are being held responsible for planning and asking for time off ahead of time where the need for absence is foreseeable.
In my next Insight, I will review how employers can handle remaining PTO when the employer-employee relationship is terminated.