As we creep toward summer, I hope you've penciled in some well-deserved time away from work!
Last month, my summer kicked into full gear - helping my son pack for his volunteer trip, beach time with my other son, and a full family trip to Europe.
The highlight for us all? Seeing England take on Denmark in the European Cup! ⚽️ (Sadly, Coach Lasso was nowhere to be seen.)
Taking time off got me thinking about Paid Time Off (PTO) policies. Why?
Because PTO is a keystone of your employee value proposition that needs to stay fresh, engaging, and aligned with your overall business goals!
So, here’s a streamlined guide to help you audit and update your PTO policy (and how to do it effectively.)
10 Questions to Help You Audit Your PTO Policy
Look, we’ve all heard about the seemingly never-balanced work-life equation.
We know that the success of your organization depends on its people (it’s the number 1 success indicator!) So make sure your PTO policy is not just a checkmark but a cornerstone that demonstrates you value your employees' time.
No matter what PTO structure you’re currently leveraging (Annual Allotment, Accrual Bank, or Unlimited), here are the 10 questions to keep in mind when auditing your PTO policy:
Who Can Use PTO?
Clarify if PTO applies to salaried, hourly, and part-time employees.
Allotment vs. Accrual vs. Unlimited?
Define how employees earn and use their PTO.
How is PTO Tracked?
Ensure your tracking system is up-to-date and user-friendly.
Does Seniority Affect PTO?
Determine if tenured employees receive additional PTO.
When can PTO be used?
Identify manager approval requirements and busy periods when PTO may be restricted.
When Does PTO Start?
Specify if PTO is based on hire date or a uniform reset date.
Is There a Cap for Accrued Hours?
Consider implementing a cap to avoid excessive PTO accumulation. Check all your locations (don’t forget remote workers!) as local laws may differ.
Do You Payout Unused PTO?
Decide on your approach to paying out unused PTO, especially for departing employees. Check all your locations as some local laws require payout.
Is Our PTO Competitive?
Your PTO Policy is an excellent recruitment tool - make sure you compare it against industry standards often to attract top talent.
What Does it Say About You?
Your PTO Policy is a cultural statement about how you trust and value employees balanced with business goals. Are you sending the right message?
Made Changes to Your PTO Policy? Here’s How to Communicate it With Your Team
And once you’ve made tweaks to your PTO Policy, make sure you're communicating those changes with your team. Here’s how to do it:
Explain the Reason: Be honest about why changes are necessary.
Detail the Updates: Clearly outline what’s changing and why.
Impact on Different Employee Groups: Specify how the changes affect salaried vs. hourly workers.
Display the Policy: Make the updated policy easily accessible.
Start Date: Inform employees when changes will take effect.
Anticipate FAQs: Prepare responses to common questions to address concerns promptly.
By prioritizing a balanced work-life equation through thoughtful PTO policies, you invest in the long-term health and success of both your employees and your organization.
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