The benefits of an unlimited PTO policy include: • More flexibility for employees to take the time they need, when they need it, rather than waiting for PTO to accrue. • May be a good recruiting and retention tool, as it promotes autonomy over the employees’ own work-life balance. • May avoid employee burnout. • Reduced administrative costs for employers in tracking PTO. • Cost savings, as in some states there is no need to pay out unused PTO days at the end of the employment relationship if the employer truly has an unlimited PTO policy. But watch out for these potential pitfalls of unlimited PTO policies: • You may have employees who prefer to “earn” accruals rather than use their discretion in taking time off. • Some employees may request less time than they need, while others may request excessive time off. • Managers may not apply and enforce policies consistently, which could lower morale or lead to discrimination claims. • Although the purpose of a vacation allowance is to encourage employees to disconnect and recharge, they may be frustrated if they can’t cash out unused vacation time upon separation — especially if your old policy allowed it or state law requires you to pay out accrued vacation at termination. • Combining vacation and sick time off may run afoul of various state and local sick leave laws. • Some states may still classify unlimited PTO as “earned wages” depending on how the policy is structured and applied — so check with your attorney on the legal nuances for your locations. Scan the QR code to read more. https://www.fisherphillips.com/en/news-insights/ unlimited-pto-great-resignation-concerns-practicaltips-policy.html To address some of the concerns with unlimited vacation programs, some employers are setting “minimum PTO” or “mandatory vacation” policies – meaning they require employees to take at least a certain amount of time off a year. The benefits of this type of policy include: • Helping prevent burnout and encouraging better work-life balance by ensuring employees take breaks from work. • Helping managers plan for absences and schedule work assignments accordingly. • May be a good recruiting and retention tool. • You can be flexible in your approach. For example, an unlimited policy can be combined with a minimum requirement to reap the benefits of an unlimited PTO plan and address some of the pitfalls (like the fear of taking time off that’s not “earned”). You can also combine minimum PTO with accruals or other policies that provide a set number of earned vacation time per year to avoid high cash-outs or rollovers at the end of the year if offered by your company or required in your jurisdiction. However, be vigilant of state-specific requirements. • You can still award employees with extra time off based on tenure, for example, by raising the minimum for employees with seniority. A word of caution: You’ll want to ensure your written policy is developed and implemented carefully so that the minimum doesn’t unintentionally become the maximum. We’ll discuss corporate culture in more detail next. 4. WORK WITH EMPLOYEES TO REDUCE ANXIETY According to Glassdoor’s research, 77% of employees feel anxious about the workload they’ll face when they return from vacation. You can help assuage their fears by: • Scheduling a 1:1 meeting prior to their vacation to go over any projects or tasks that will need to be reassigned to other employees during their absence. • Encouraging them to truly disconnect while on vacation and reassuring them that you have an adequate work-coverage plan in place. • Following up when they return to work to help prioritize tasks and manage their workload. • Offering words of encouragement to enjoy their time off and welcoming them back when they return. 5. CREATE METRICS FOR MANAGERS You’ll certainly want to train your managers on your PTO philosophy and policies. But you can go a step further in the spirit of loud vacationing by developing performance metrics for managers based on time-off objectives for their teams. Consider doing the following: • Analyze team PTO use to ensure sufficient time is being taken by all employees. • Address patterns of underuse. Is the manager discouraging vacation use, or are employees hesitant to take time off for some reason? Get to the root of the issue. • Assess whether PTO is being approved and used equitably across the team. If not, find out why and address any disparities. • Ask employees for feedback. You can periodically survey employees to find out what is and isn’t working for them. Just remember that if you ask employees for their input, it’s important to follow up and address their concerns. 6. DON’T FORGET THE LEGAL STUFF • Ensure your PTO policies align with all applicable federal, state and local leave laws — including paid family leave, paid sick leave and accrual requirements. Note that some states have banned “use-it-or-lose-it” PTO policies or require employers to pay out accrued but unused PTO at the end of employment. • Employers with multiple locations may need to make jurisdiction-specific adjustments. WVADA NEWS 26
RkJQdWJsaXNoZXIy MTg3NDExNQ==