Control unscheduled absences
When all types of paid time off are separated, employees have the tendency to use their sick leave whether they need it or not, therefore sometimes they may be distrustful. But with one single allotment of days, they will save days to use for vacation. Also, they can play days off, therefore the employer won’t be left without backup. A scheduled coverage is useful for managers since they can delegate responsibilities better, in case one employee is off work.Flexibility in administration
Since you are dealing with a compressed bank of types of days off, the PTO bank is easier to manage.Flexibility for employees
PTO policies have invaluable flexibility - employees can use their paid time off when they need it the most - caring for a sick child or solving a matter at the bank.A key advantage for hiring over competitors
If a company wants to attract top performers, it has to grant competitive benefits. A PTO policy is softer than a traditional one, which divides days off into sick leave, personal days and vacation. Therefore, it may be the reason a candidate chooses your company than your competition.Diversity
The PTO bank indicates you respect employees’ diversity by allowing them to celebrate the holidays they choose (religious or not).Work-life balance at its best
Employers may not be accountable for the work-life balance of their employees, but a PTO package can motivate the staff and encourage them to be more efficient and productive at work.
When you have to deal with unscheduled absences, you may need to pay a temporary worker to fill in. That worker may not be as good as your employee, so deadlines may be missed and this affects your sales. The PTO bank system can prevent all these costs.
Nevertheless, there are some disadvantages to consider:A tendency to offer fewer paid days
One concern is that by adopting a PTO policy, employers may end up giving their staff fewer paid off days than they used to when the system was based on separate types of leaves.An increased volume of requests
Employees are likely to use more days off when benefiting from a PTO bank, therefore employers will need to solve scheduling issues and cover all staffing needs.Refusal to using PTO as sick leave
Employees may show resistance in using their PTO when they are sick. This is because they see all the paid days as vacation and therefore, they prefer to save as much time as possible for the long-awaited summer holiday. This may turn into a dangerous practice because a sick employee in the office will be detrimental not only to himself but to the others also.
Note: All in all, it all comes down to your organization: if you feel your employees are better off with the traditional system of separate leaves, then that’s the road to take.
But keep in mind that PTO is a more flexible option. And this flexibility will emerge in a lot of areas: rewarding, recruiting, retaining top workers and increase employee productivity.