Americans work long hours by the world’s standards, and take very few vacations comparatively. This trend may be motivated by American’s work ethic but it’s counterproductive; overworking hurts employee productivity.
Tag: paid time off
When a company offers vacation time or PTO, they have to decide on a vacation rate for the accrual. There are a few options. Vacation time can accrue by hours worked, by the day, the week, or pay period. Alternatively, employers can choose to give out a lump sum at the beginning of the year. There are many rates to choose from and they are all suited for different needs and scenarios.
Not every company chooses to put a cap on time off since not everyone considers rollover a problem. But for those companies that do, there are a couple of ways in which to cap it. One of those is by zeroing out time off balances at the end of the year. This is called a use it or lose it time off policy. Employers don’t always realize it but this type of policy can cause conflicts in work flow and employee engagement.
Whether your paid time off plan is complex or pretty basic, you should take the time to lay out the details and create a policy. Besides the amount of time and the rate at which that time accrues, there are other important considerations to consider. For example, a policy helps companies cover their bases legally. It also helps prevent misunderstandings.
Time off is, traditionally, a benefit employees earn just for working at the company. Whether employees earn time off by the hour, day, week, month, or year, it’s dolled out based on the time they put in. But times they are-a-changing and time off is increasingly given to employees for other reasons, such as non-monetary bonuses or rewards for good behavior.
We all look forward to a break from work – a vacation that lets us relax and rejuvenate. However, in the US paid time off is not a given. Employers don’t have to offer time off. Even when they do, not all Americans use it all. And still some workers don’t completely disconnect during their vacation. Vacation time is lacking compared to the rest of the world. The US has the seventh least vacation days behind Japan, Taiwan, Hong Kong, Canada, China, and Mexico.
There has been a lot happening in California with regard to employee benefits lately. Last week it was a state-wide minimum wage hike and this week, in San Francisco, it’s six weeks of fully paid leave for new parents. The San Francisco Board of Supervisors voted unanimously on Tuesday in favor of the measure.