Eight great reasons why employers and employees can benefit from paid time off.
Learn why every employer should consider adopting a paid time leave program.
Employees understandably love paid time off (PTO). But, for employers, the thought of providing a benefits package with paid sick days and paid vacation days can be rather alarming, However, offering paid time off benefits instead of days specifically provided for sickness and vacation can be beneficial both to employees and employers. Here are some of the ways paid time off is beneficial.
1. Less administrative stress and lower costs. Your company’s human resources department has to keep track of every employee’s time and validate their days off when you provide separate designated days for sickness and vacation. This can use up more time and resources that could be spent on other matters. Paid time off benefits take a load of off administrators, who only have to record whether or not an employee came in on that particular day without worrying about why they were absent.
2. Better work-life balance. Although employers are not necessarily responsible for making work-life balance better for their employees, providing paid time off gives employees the power to develop a better work-life balance for themselves. It allows them to reduce their stress level by taking time off when needed without worrying about losing pay. And it also helps them to achieve personal fulfillment by spending the needed time and effort on relationships, hobbies, personal growth, and self-care. With the encouragement that comes from paid time off, employees can seek accomplishment both inside and outside the workplace. The employer benefits by having happier, healthier workers, both mentally and physically.
3. Less financial liability. Rolling over vacation days from year to year is considered a financial liability for employees. Paid time off, on the other hand, is a monetary benefit that adds to the compensation package of an employee and results in employers having to cover less vacation time as employees move up in rank.
4. Reduction of unscheduled absences. With the traditional model of providing employees with sick days as part of the benefits package, the employers have no idea when employees will make use of those days. This can result in an essential team member not being available at a very important season in the company or when a major project is due. By providing paid time off, employers provide scheduled coverage so that employees can schedule their days off. This results in the company being able to effectively plan for absences and stable management of resources.
5. Improved morale and better performance. Employees can begin to feel burned out when they have to undergo several months or a full year of work before they can take advantage of their vacation time. Their performance may worsen, and they may surprise employers with unexpected absences. Paid time off allows employees to take breaks when they deem them reasonable and needed. It also makes them feel valued by the company which inspires them to work harder.
6. Rewarding good work and seniority. A paid time off policy is a very flexible way for employers to reward employees for good work. Paid time off benefits can be used to provide more days off to employees who have worked at the company for a longer time. This type of policy also encourages employees to remain with the company longer since it shows them that their loyalty and service is appreciated and comes with a reward that they can take advantage of when so desired.
7. Competitive advantage in hiring. Employers can use a flexible paid time off benefits package to give themselves a competitive edge over other companies when trying to attract high-quality applicants. When applicants see these types of plans instead of traditional time off methods with sick and vacation days, their decision on where to work could very easily be influenced.
8. Increased autonomy for employees. Employees are given the power to determine when they need to take a break off of work when their business provides them with paid time off. They don’t have to give their superiors a reason why, they don’t have to fake an illness, and they don’t have to depend on a lower work output to explain why they need to take a day or more off. Autonomy gives employees the feeling that they have some type of control or power over when they need to take time off to recharge and recuperate. Then they can return to the workplace more energized.
Employers that provide paid time off are rewarded with employees who have a greater investment in their own well-being which makes for a more healthier company.