If your company is like most, you’ve probably had the same paid time off (PTO) policy for longer than you can even remember. The PTO policy is one of those things that sits on the back burner because it’s rarely addressed or mentioned. Since some companies are increasing offerings for paid sick leave and time off, many employees are starting to ask questions about their PTO. You can’t afford not to evaluate your own policies if you hope to increase and maintain your employee retention. That’s why it’s time to review your company’s PTO policy.
Stay Competitive Within Your Market
One of the main reasons you need to reevaluate your PTO policy is to ensure that your company stays competitive within your market. Your company’s offerings will either attract or deter potential employees from accepting positions, depending on how they measure up against the competition. In addition to that, your benefits and PTO package has the potential to increase your employee retention rates if the offerings are unmatched by others within your market.
Some companies are offering unlimited PTO in an effort to rethink the concept of work/life balance. These innovative policies typically have restrictions to prevent abuse. For example, Netflix only extends unlimited time off to its salaried employees. If your company is open to this type of policy, look into examples from other companies that are currently offering it to build in safeguards and regulations.
Increase Employee Productivity
Aside from the obvious benefits of keeping up with the competition, your PTO policy can have a positive impact on the overall environment of your office. Employees who have access to and are encouraged to make use of PTO are often more productive and effective in the workplace. Vacation time allows your employees to clear their minds and return to the office feeling more focused and engaged in their work.
While you may be concerned about employees being out for a few days at a time, particularly when a deadline is involved, it’s important to think of the larger picture and recognize the benefits to long-term productivity.
Most importantly when considering adding a PTO policy or making changes to your current policy, don’t forget about the impact time off can have on the overall well-being of your employees. Without an opportunity to escape the daily grind of the workplace, employees are much more likely to experience burnout, which manifests in symptoms like exhaustion, lack of focus, illness, and anxiety. Battling such symptoms while trying to complete a project is nearly impossible. It could result in employees needing to take additional sick days to recuperate from the stress.
Improving your company PTO policy will positively impact your company culture by creating an environment focused on the health and well-being of your employees. Demonstrate the value you place in your team by ensuring that they have the opportunity to practice self-care without worrying about their paycheck. In so doing, you will help employees reduce symptoms of burnout and promote a positive atmosphere centered around the well-being of all your team members.
While a PTO policy may not be at the forefront of your thoughts, it’s important to recognize its value and ensure that your current policy is not only serving the needs of your employees but benefiting your company as well. Take the time to review your current policy and make the changes necessary to have a more positive impact on your company culture, the productivity of your team and your ability to compete with others within your market.
Changing PTO policies or offering different plans to different employees can get complicated, but not with isolved, GTM’s payroll and HR management system. Employee data flows seamlessly within departments, ensuring accuracy and saving time. Plus employees can check their accruals and request time off from anywhere, any time using the isolved Go mobile app.
Request a free demo of this exciting technology and see how it will help you grow your business.