Discussion Post Response #2
Bring in ideas/comments and/or research not previously mentioned by attached post. Cite your sources. 200 words minimum/ APA Format
DiscussionMod 3: Paid Time off Benefits
Lilliana
Harris posted Jan 14, 2020 9:29 PM
Good Evening Class,
Paid time off (PTO) is a benefit program presented by many businesses which permits employees to take a specific number of days of while still getting paid. These authorized absences are mainly related to vacation, illness or personal situations. Under federal law, there is no minimum requirement for PTO benefits in the United States. Therefore, each employer can implement their own plan and accrual policy if they remain within the current state’s law.
There are 3 types of PTO policies being; tradition time off policy, PTO banks and unlimited PTO. Traditional time off policies offer their employees an assigned set of paid time off for each category. The most popular categories are vacation, sick days, and personal days (Marzullo, 2019). Most companies increase PTO for workers who have worked for the company for a longer period. The second type of is PTO banks which is like the traditional time off policy, but instead PTO banks offers employees an allotted set of paid time off for the year. PTO banks groups time off into one “account,” this helps employees take time off for any reason without lying about which category they are subtracting from. And the third one is unlimited PTO; this allows employees to take time as they need with no set allotted days. The rationale behind this policy is that the employee will manage their time wisely due to it being in the best interest of their careers (Sammer, 2014).
If I was over of a business, I would implement the PTO banks policy and start by offering 3 weeks of paid vacation. I believe to retain good, motivated and high performing individuals you need to give them something worth wanting while you observe what PTO is most beneficial to your employees and for the business. I think the PTO banks policy is the midpoint between the old school way age (traditional) and millennials (unlimited). The pros of the PTO bank policy are; it gives the employee clarity on the number of days they can take not to include the 3-week paid vacation time. It alleviates unnecessary administrative stress on the HR teams and managers trying to ensure the leave is logged into the correct category. The cons of this policy can create a costly end of year payout if the employee doesn’t use their time or someone resigns. Also, with time off not being logged administratively into the traditional groups, the company may not have as much insight into trends and patterns to be able adjust or customize their PTO policy to retain high performing employees (Meza, 2019).
Lilliana
References
Marzullo, D. (2019, February 19). Paid Time Off Policy Best Practices . Retrieved from WORKEST: https://www.zenefits.com/workest/paid-time-off-policy-best-practices/
Meza, J. (2019, September 24). 3 Types of Paid Time Off Policies. Retrieved from earn.g2.com: https://learn.g2.com/types-of-paid-time-off-policies
Sammer, J. (2014, December 15). Unlimited Paid Time Off: A Good or Bad Idea? . Retrieved from SHRM: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/unlimited-pto.aspx
Bring in ideas/comments and/or research not previously mentioned by your peers. Cite your sources.