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Is PTO Good For Your Business?

Download the Paid Time Off (PTO) Benefits Benchmarking Survey to find out how your company's benefits program compares to your competitors --- via CBG BenefitsIs your company thinking of implementing a Personal Time Off (PTO) policy within its employee benefits program? While many companies continue to offer separate buckets for sick days and vacation days, the PTO approach provides a bank of hours that employees can draw from for a variety of reasons.

To help you analyze whether the PTO approach is right for your business, below are some pros and cons for you to consider.

Benefits of PTO

There are several benefits that PTO can provide to both the employer and employee. Here are a few:

  • It makes the company more appealing: For many people in today’s workforce, flexibility is a premium benefit! Many employees look at a PTO offering as a way to improve their work-life balance. Also, because most employees do not use all of their sick days, they will view the lump sum of PTO days as an additional bonus from their employer.
  • It empowers employees: A PTO offering often makes the process of asking for a “day off” much easier for an employee. Rather than having to provide a detailed explanation to their employers, employees are granted the power to decide how they will balance vacation, sick days, and personal time.
  • It reduces the financial liability carried by employers: Under most PTO plans, there is a limit to the amount of days that can be carried over to the next year. This means that employers carry less financial liability in regards to covering accrued vacation time.

Potential Drawbacks of PTO

Before an employer implements a PTO offering, there are a few potential disadvantages that need to be considered. Here are a few:

  • It encourages some employees take more days off than ever before: Prior to the PTO benefit, healthier employees may have not missed work during what were classified as “sick days”. But with everything under the PTO bucket, those employees may now take the initiative to use those days for additional time away from the office.
  • It causes some employees to come into work even while they’re sick: Employees may view PTO as a big lump sum of “vacation days”. Thus, rather than staying home to rest, they will come into the office on days when they are not feeling well. This could potentially cause a decrease of production inside your workplace as others get sick.
  • It may breed resentment inside an organization: Each employee’s personal circumstances will differ throughout the year. Some will find that they need to use PTO days for items such as caring for children or elderly parents, while others are able to use them for recreational activities and vacation getaways. This may often cause resentment and complaints to arise within the workplace.

Should Your Business Implement PTO?

These are just a few of the Pros and Cons that should be considered when deciding whether your business should implement PTO as part of its Benefits package.

If you would like assistance weighing these items against your company’s unique situation, we are here to help. To chat with a CBG representative, simply fill out our Contact form or call 781-759-1222 today.

 

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DOWNLOAD: Find out how your company’s PTO, vacation, and sick day policies compare: download the Paid Time Off Benefits Benchmarking survey today >>

 
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Posted in: Benefits and Insurance, Human Resources

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