PTO is a Priority

PTO is no longer a “perk”, but a necessity. In a world where work-life balance matters more than ever, offering a competitive PTO package is emblematic of not only your culture, but how you prioritize employee well-being. According to a recent survey, Gen Zers and Millennials rank PTO as the most important benefit when evaluating job opportunities.  And it’s not just about offering PTO; it’s about the sentiment behind it. Employees want assurance that using PTO is actively encouraged, rather than silently discouraged. Too often, employers offer robust PTO packages, but the company culture implies that using it is career-limiting.  This sends the message that employee well-being should be sacrificed in the name of advancing your career. To avoid this culture-killer, when offering PTO, make sure your employees are supported in actually taking it.  After all, when employees have the freedom to rest and recharge, the benefits are reciprocal: morale goes up, burnout goes down, and productivity tends to follow.

 

Designing a Policy That Works for You

The first step in developing the best PTO plan for your business is deciding how you’ll structure your time-off policy. Here are three common options, each with its own pros and cons:

1. Accrual Method:
   Employees earn PTO gradually, often based on a pay-cycle or monthly basis. While a common practice, this can be an administrative burden, especially if there are not systems in place to track it.
2. Annual Allotment:
   In this case, all employees start the calendar (or fiscal) year with a set number of days. The time is offered up front, rather than accrued, allowing for predictability and easy tracking. Set best practices and train your leaders on how to best manage this policy, specifically to ensure that PTO is being used throughout the year, and not all at one time (like year-end – yikes!).
3. Unlimited PTO:
   Unlimited PTO has gained popularity in recent years, especially in the start-up and tech spheres. An unlimited PTO policy can be a huge asset for a company and its employees – but only when it’s done right. Make sure you discuss standard protocols with your leadership, such as ensuring there is a minimum amount of time taken off each year, to ensure this policy doesn’t unintentionally lead to burnout for both employees and leadership.

No matter which option you choose, be transparent. Make sure your policy is understood by everyone, and that leaders are enacting the policy equitably. Employees should know exactly what to expect, and so should their managers.

Striking the Right Balance

When designing a PTO policy, you are balancing your teams’ needs with your business capabilities. Sometimes, you need to make some difficult decisions in the face of your operational realities.

Begin your design process with the following questions:

• How much time off can you realistically afford to offer without disrupting productivity and deliverables?
• Are there periods during the year that make scheduling time off easier? Maybe harder? Consider major holidays, conferences, or deadlines.
• What are your competitors offering? How would you like your policy to compare?

A helpful tool when making policy decisions that impact employees are employee surveys. This can be done through traditional online surveys, or even through dedicated focus groups. Taking the time to learn and understand what your employees are looking for will ensure you’re representing the majority – and not just a vocal minority. Surveys can go a long way in making employees feel seen and heard, but a word of caution: if you’re planning to conduct a survey, be prepared to share those results and communicate your decisions transparently. Otherwise, you risk losing trust and disengaging your workforce.

Compliance is Critical

As state mandated leave laws become more common, it’s critical to ensure that your policies meet the requirements of any state in which your business operates. No two states have the same time off laws, and you must pay attention to those distinct differences. This goes beyond the amount of time you must offer, too. Some states require the payout of unused PTO at the time of termination; others are more flexible. And remember: it’s not just vacation time regulations but paid sick leave laws and even jury duty laws that may operate differently than general PTO. All of these policies should be clearly outlined in the company handbook and communicated to all employees.

Flex HR can review your policy to ensure you’re legally compliant. Trusting this to an expert is a small investment now that can prevent big headaches later.

 The best PTO policy for your business is about finding what works for you. When developed thoughtfully and strategically, a time-off policy will not only support your team’s well-being, but enhance productivity and your reputation – helping your organization stand out in an increasingly competitive market. If your time off policy needs an overhaul – or if you need to build one from scratch! – Flex HR has resources available to support you. Reach out today to learn more!