Paid Time Off is consistently considered one of the most important benefits to employees. And while a PTO policy isn’t required by law, your organization will have a far better shot at recruiting and keeping talented employees if you offer it. Nearly 90% of organizations stated that a paid time off program is vital to growth and retention. Before we explore what employees want from a Time Off software, let’s dive into four common paid time off options.
If you’re familiar with the term PTO, flexible PTO is likely what you’re thinking of. It gives employees an amount of paid days to use however they see fit, as long as management approves them. Whether that’s vacation, a day on the couch, or recovering from illness, any use is fair game.
Traditional PTO breaks up paid time into categories. Typically, employees can submit time off for being sick, taking a personal day, or going on vacation. Traditional PTO is often based on tenure with a company, which can be an incentive to stay with a company. However, reporting on traditional PTO can be difficult if employees take paid time outside of the intended category.
Earned, or accrued, time off is similar to traditional PTO in that paid time is awarded by how long an employee has worked for the company. As an employee racks up working days and hours each month, employers reward the time worked with an allotment of paid days or hours off. Like traditional PTO, earned paid time off may work as an incentive for employees to stay longer with an organization. If your policy includes earned or accrued time off, be sure to consider if you will pay out the unused time or if it will roll over at the end of each calendar year.
Unlimited PTO is one of the hottest trends in HR currently, alongside workplace wellness and work-life balance. It’s relatively new and self-explanatory: employees are allowed to take as much paid time off as they request with manager approval. Unlimited PTO is quite the shiny, bright attraction for potential and current employees. Usually, employers avoid a payout for unused time in the event an employee leaves. It has the potential to create rifts among your employees, though, as some might abuse the policy and take too much time off, or create a culture of fear in which others are afraid they’re taking too much time off and consequently hardly take a day off.
We’ve established that employees value paid time off and covered a few of the most popular policies. But a policy is only as good as the process working behind it. Even if you’re one of the cool kids on the block offering unlimited PTO, it won’t matter if managers constantly lose paper vacation requests or forget to log the time in a complicated spreadsheet.
Employees want a streamlined and efficient Time Off process because it eliminates the hassles of traditional time off requests. Imagine the frustration of filling out a paper vacation request, planning a long weekend getaway, and at the last minute told you can’t go because the request was never received and the boss needs you that Thursday and Friday. A Time Off software gives employees a breakdown of approved and pending requests, as well as their leftover balance.