In a recent study by Mercer, it was discovered that combined paid time off (PTO) policies have skyrocketed to over 63%, up from just 38% in 2010. To remain competitive, many employers are shifting how they structure their traditional sick and vacation policies in favor of a combined PTO policy. Regardless of your time off policy it should be easy to track, compliant and attractive to candidates as well as current employees.
With the unemployment rate at a decade low, employers are looking for creative ways to attract and retain top talent. A combined PTO policy provides employees freedom in how they spend their time away from the office. Flexibility with time off can lead to increased job satisfaction and help decrease employee turnover.
By implementing a combined PTO policy, employees no longer feel the need to "fake sick." Employers no longer have the burden of tracking down employees to determine if their unscheduled day off was a sick day or a vacation day. The Alexander Hamilton Institute found that unscheduled absences dropped almost 10% when a combined PTO policy was implemented, thereby reducing the disruption to business operations when people are unexpectedly absent.
Structuring a compliant, combined PTO policy is important, especially when it includes tracking paid sick leave. Considering a review of your time off policy? A consultant is available to provide guidance and recommendations.