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Paid Time Off Essay

1288 words - 6 pages

To change the Caveman-like policy on paid time off (“PTO”) to the new unlimited PTO means to eliminate “vacation days” and “sick days” or a specific number of days given to employees to take off each year. Instead, company would allow employees to take as much as they need without being docked any pay. Before moving on to choosing the more suitable PTO policy, we do a research and analysis to have a better understanding about the new unlimited PTO policy.
On one hand, the new unlimited PTO policy has some advantages. First of all, this new PTO policy would let employees recharge. The unlimited PTO policy allows employees to schedule in week or two-week-long trips that might not be possible ...view middle of the document...

Thirdly, company can use the unlimited PTO policy for recruiting. Unlimited PTO could be seen as a “talent acquisition tool”. The benefit is extremely attractive to potential hires. It is also a compelling benefit for many workers. The impact can last long after recruitment. A 2012 survey of 2,094 adults sponsored by found that 69% would be more inclined to take a new job if the company offered unlimited PTO (Sammer, 2014).
The last advantage is that the new policy could save company’s money and time. The unlimited PTO policy saves the cost of tracking and managing company’s PTO schedule. It also eliminates the liability and unexpected expense of paying out accrued and unused vacation days when employees leave. Some employers with unlimited PTO policy point to the administrative time saved because HR staff no longer has to track and police the use of accrued vacation time for each employee. calculated that its unlimited PTO policy saves 52 hours a year in administrative time (Sammer, 2014).
One the other hand, there are also some disadvantages of the new policy. First of all, it can be hard to implement fairly. The biggest stumbling point with unlimited OPT policy is ensuring that all employees are given equal opportunity to take their time off. The obvious problem is that everyone can’t be out at the same time. If we want to implement the unlimited PTO policy, we need strong managers who can juggle a vacation schedule that is fair to all and effective for the business (Griswold, 2013).
The second problem with unlimited PTO policy is that many employees are skeptical of such policy and they don’t take advantage of it. The typical U.S. employee with paid vacation time took just a little more than half of his or her allowed time off in the previous 12 months, according to an April 2014 Harris survey conducted for Glass door. Just a quarter reported taking all the time off given to them, while 2 in 5 said they had taken 25 percent or less of their available time off (Milligan, 2015). For these employees, they may have the perception that when say “unlimited vacation”, it really means that there is “no vacation”.
Finally, the most serious and important thing is that using the unlimited PTO policy would have potential for employee abused. If an employee chooses to abuse the unlimited PTO policy, it can be difficult to terminate the employee for absence because he or she is technically allowed to take that time off. The possibility of employee abuse exists, but there are ways to curb it. For example, we can limit how much time off employees can take at once, implement companywide systems requiring preapproval of vacation time, and ensure fair and equal treatment across the board. Establishing and reviewing performance goals can also help mitigate this...

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