Hereís some good news for those considering a switch to paid time off (PTO) banks: A new HR21 survey shows that HR people are happy with them.
More than 90% of HR managers of those whoíve tried PTO banks said theyíre a good recruiting and retention tool.
Thatíll surprise those who have strong doubts about PTO banks; specifically, cost and productivity concerns if people get too much time off, or concerns that people will come to work sick to avoid burning up vacation days. But our survey shows only 2% of HR managers report it was a costly giveaway, and the same number reported excessive ìpresenteeism.î
High Stakes
The stakes are high in any switch to PTO: Sick, vacation and personal days in a typical company are about 10% of payroll. But the payoffs can be equally high, since and last-minute absences ñ the main problem people want PTOs to correct ñ cost 4% of payroll, according to MercerHR. Among PTOsí other promises:
ï Improved recruiting and retention, and
ï Lower administrative costs from streamlining operations.
ï None of these payoffs are givens, though. HR needs to set up policies that:
ï protect the company from accidentally creating a costly giveaway
ï manage the transition effectively, and
ï allay workerís natural suspicions that benefits are being taken away.
If mishandled, banks can increase turnover and costs. To see complete survey results and read an in-depth article about why companies are warming to paid time off banks, click here:
New B21 Survey: Paid Time Off Banks: Survey Suggests They’re Working
Suvery suggests paid time off banks are working
