An employee's remuneration for personal time off, federal holidays, sick leave, and vacation time is known as paid time off (Milkovich, Newman, &Gerhart, 2011). Employers offer this perk to their staff members. This bonus increases the company's appeal to potential employees. When they return to work, it guarantees that they will be more committed, focused, and productive.
Paid Vacation Time Off
There are various parts to a paid time off package. Paid vacation time off, which employees accumulate hours of for each day they work, is one of the components. The number of years of employment and employee position level affect the employee position in the organization (Milkovich, Newman, &Gerhart, 2011). A new employee is entitled to one-two weeks paid vacation off. Senior managers and executive level staff are granted extra days' vacation off.
Paid Holidays
Paid holidays are also included in the paid time off to attract and retain employees. According to the Bureau of Labor Statistics, full-time employees are entitled to around 7.6 paid holidays on average. Federal employees are entitled to an annual schedule of paid holidays as established the U.S. Office of Personal management. Commonly paid holidays include the charismas day, Memorial Day, New Year's Day, Easter, and Independence Day on July 4th among other holidays in the US.
Paid Sick Off
Paid sick off is the time an employee takes off from work due to sickness. Employees accrue the number of the sick days that they can use based on their number of years served and position in the organization.
Personal Holidays
Personal holidays are also part of the PTO. Employees are paid for the time off due personal days. It accrues the number of paid hours over the calendar and employees are allowed to use paid personal days before accrual. Personal days include voting, family holiday party, parent-teacher conferences among other personal activities.
The following provisions should be provided when writing an organization PTO policy paper. Eligibility of the employees to the PTO should be specified in the policy. Full-time and part-time employees should begin to accrue PTO upon being employed. They should be entitled to use PTO since it is accrued.
Accrual Rates
Accrual rates to the employee PTO bank should be provided and based on the number of years in service (Milkovich, Newman, &Gerhart, 2011). The terms of accrual should be set clear and scenarios for an exemption also stated in the policy paper. Employees should accrue a prorated number of hours based on the maximum yearly accrual.
The policy paper should also include the provisions for the use PTO process. This should specify the process and procedures the employees should follow while Requesting of PTO, using PTO i.e. it must be used before time.
Banking unused PTO this ensures that PTO time cannot be lost or expire. Nonexempt employees should accrue PTO based on the actual hours paid up to 40 hours a week. This should exclude overtime and unpaid leaves of absence.
The policy should provide and specify the terms of Payout of PTO. It should state when the employee should be paid for the accrued and unused PTO and the rate of payment. These provisions should act as the guideline when writing a PTO policy paper for an organization.
Reference
Milkovich, GT., Newman, J.M. & Gerhart,b.(2011). Compensation (10 ed.). New York, NY: McGraw Hill/Irwin
