Everyone needs a vacation. But how can you easily give one to your employees without ending up with an empty office? Most companies offer some form of paid time off (PTO), whether it’s divided into paid holidays, vacation days, personal days and sick leave or a set number of days per year that employees can use for whatever they need (often referred to as a “PTO bank”). Regardless of your system, high-quality PTO management is essential.
There is no federal regulation requiring employers to provide paid time off, but it’s strongly encouraged as a way to attract and keep solid, talented employees. Because there is no regulation, employees can accrue PTO at different rates depending on where they work. Your company’s guidelines should be clear about accrual rates and usage policies.
Generally speaking employees earn more vacation time the longer they remain with a company, moving from perhaps nine vacation days their first year to 16 days their ninth year, says Salary.com. They are likely to have nine or ten federal holidays plus personal and sick days. A PTO bank might start employees at 14 paid days off in the first year, growing to 23 days in their ninth year. These days cover both sick leave and vacation time, giving employees flexibility to use time as they need it.
Now that you have time off, how can you use it? Many companies have policies about requesting paid time off in advance so it can be approved. This system prevents companies from being short-staffed during busy periods or potential abuse of the system. Online PTO software — in lieu of paper requests — can make these requests easy to manage. However, it’s important to be extremely clear about the rules. Can employees use only a few hours at a time or is it by complete days? Since sick time is part of the PTO bank, what are the policies regarding calling in sick? Make it clear that PTO isn’t just vacation time.
No matter the system your company uses, tracking PTO is important for both employees and employers alike. Using PTO software automates processes such as accrual and requests for time off, making it easy for everyone to get the time they need to recharge.
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