Is It Time To Adjust Your PTO Policy?

Small Biz Ahead

Episode Notes

Key Podcast Highlights

• PTO Usage Trending Down: A survey by Sorbet revealed that 62% of Americans didn't use their paid time off (PTO) in 2023, which was a 57% increase from the prior year. Additionally, 5.5% of American workers didn't use any PTO in 2023.
• Traditional PTO Policies: Common PTO policies include "use it or lose it" plans, where unused PTO will either expire or carry over to the next year. In recent years, these policies are actually becoming less favored due to their complexity and administrative burden.
• Growing Popularity of Unlimited PTO Policies: More companies are adopting an "unlimited PTO" policy, also known as "professional judgement PTO" plans. These policies allow your employees to take as much time off as they need, with supervisor approval, promoting flexibility and trust.
• PTO as a Retention and Recruitment Tool: Professional judgement PTO plans are often offered to employees who have been with the company for a certain amount of time (e.g. five years). This approach to the policy could help retain your experienced employees and attract new talent.
• Mental Health and Internal Control: Ensuring your employees are taking the time off they need is crucial for their mental health and maintaining internal controls, especially for your company's financial roles. Supervisors should encourage their direct reports to take at least a couple weeks of time off each year to prevent burn out and promote work-life balance.

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