Why Do Employees Need A PTO System?

This leave entitles employees to a 12 week unpaid leave within a 12 month period. It is 26 weeks for service men and women and their families. There are several components of this law that pertain to the number of employees, location of employees and the amount of time an employee has at their place of employment. Some employers may require you to use any accrued sick time, personal days or vacation time before the unpaid period

It is apparent that paid time off can offer many benefits to employees and employers aside from just simply reducing occurrences of unscheduled time off, likewise, a paid-time-off (PTO) policy has other benefits such as PTO, makes employees more productive, increases retention rates, makes the company more attractive to new hires, and helps prevent people from feeling guilty about taking time off. All in all, incorporating PTO can appear as a frightening challenge, although the process will differ for every company (Heathfield, 2016).

A growing number of states in the United State required a paid leave in addition to the federal regulations; states legislation requires employees to maintain their employment within certain time frame employment in order to accrue the sick leave hours. Additionally, the state’s regulation mandates that employees will not face any retaliation based on their medical condition

For example, legislating paid sick days opens the door to abuse by employees. Some employees may use these days as vacation without notifying their employer or a specific reason for their absence. This will often leave employers scrambling to find replacements for absent workers, which can put some small businesses in trouble. Abuse of these paid sick days translates into loss of money for businesses and higher costs for consumers.

PTO time will allow employees more flexibility when it comes to vacation time, emergencies, and even schedules events that require the individual to miss work. These twelve days will help the employee’s better plan his/ her vacation and other scheduled commitments and drastically reduce the number of unscheduled days off since all the days in one category instead of only allowing five sick days and seven vacation days. However, there will still be some days that the employees cannot request off in advance, but this policy would allow the employee a certain time period to tell the employer they cannot make it to work on a given day. By offering this type of time off structure, it will help the employer more time to plan and prepare for the staff shortage in a more efficient manner. Also, paid time off helps the employer and employee not have to differentiate what is acceptable and applicable to a holiday and sick day and it will help motivate the employees to not use a sick day unless he/ she is actually sick (Hulett, 2007). Therefore, if an employee is rarely sick, then that employee will have more vacation time to use

There may be some people that would abuse the privilege of having this, and not wanting to offer it. There are still honest people in the world that it could be an advantage to. Many people have families and cannot afford to call-in sick when they have the flu, or another illness. That is where the paid sick leave would come in. Employees coming to work sick could be a bigger risk then not letting them have to day off. It could be difficult for some smaller businesses to offer this because of the costs. The restaurant industry could get hit pretty hard because of the administrative costs as well as having to cover peoples’ shifts that are unable to go to work. “The U.S is the only major industrialized nation without a national paid sick-leave policy Some 145 countries provide paid sick days for short- or long-term illnesses. Japan, the Netherlands, Switzerland, Sweden, Denmark, Finland and Singapore require employers to provide at least 10 paid sick days” (Koba, 2013).

PTO system allowed employees to take time off without any restriction imposed through traditional time off policies .the approach give employees certain number of days that put in leave bank system ,upon withdrawal from employees the system reduce the balance of leaves remaining for the employees .with the paid off leave system the employees can utilize their allocated days however they wish, without having to specify reasons .employers can advantage from PTO asking the employees to determine their leaves in advance and employer can plan for lost work days and creating family environment through the organization .

The organization that I have chosen is University Health Systems also known as Bexar County Hospital. University Health Systems is the leading trauma center for South Texas.. The medical benefits that are offered can only be used within the organization and the family medical offices. The University Health Systems is a large organization that is part of the medical school; as well it is the County Hospital where all the inmates go for treatment. They are expecting every employee to use or go though the county clinics to seek treatment, which is a challenge in itself as the clinics, are so busy on any given day or night. There are many reasons to rethink the compensation and benefits that this organization offers employees. They do offer a large PTO amount each payday; however that is used for everything such as, sick leave, holiday pay, and vacations. If one of the departments is closed for the holiday then you are forced to take PTO even if you do not want to. During the first year of employment, full-time staff accrues 28 days at the rate of 8.62 hours every two weeks. The accrual rate increases with each year of full-time service, up to a rate of 38 days per year (University Health Systems, 2015). Another benefit that is offered is a 457 account in which the company will match 25 cents on the dollar. That is not a very good retirement plan. When looking at the organization as a whole, there must be some way that the compensation & benefits can be re-evaluated and

The individual’s health is a stock variable which changes over time. Hence, health decisions in one period not only impact that period but also impact subsequent periods. With paid sick leave, it is easier for an individual can take time off work to recuperate. This has multiple benefits. Firstly, it allows the individual to recuperate before health levels become extremely low. Extremely low levels of health will result in more ER visits and a longer recovery period. Secondly, if the individual has an infectious disease then paid sick leave allows the individual to recover and it prevents the infection from spreading to other people in the organization. Lastly, the improved health (due to recuperation) will increase employee productivity in subsequent periods at work. Hence paid sick leave will reduce ER visits over the course of the individual’s life.

Finally, the most serious and important thing is that using the unlimited PTO policy would have potential for employee abused. If an employee chooses to abuse the unlimited PTO policy, it can be difficult to terminate the employee for absence because he or she is technically allowed to take that time off. The possibility of employee abuse exists, but there are ways to curb it. For example, we can limit how much time off employees can take at once, implement companywide systems requiring preapproval of vacation time, and ensure fair and equal treatment across the board. Establishing and reviewing performance goals can also help mitigate this challenge (Unlimited, n.d.).

There can be many explanations for why an employee would call in sick to work when he or she is not really sick. One reason could be explained through the attribution theory. The attribution theory explains the behavior like this can be explained by attributing it to either the employee’s internal disposition or to an external situation. The employee’s internal disposition could be that the employee always seems to have a bad attitude to his or her job duties and that his or her personality is pessimistic or lazy. The employee’s external situation could be that he or she has a manager who is constantly micro-managing them, which makes them unhappy at work, or the employee has a coworker who is their counterpart who is slacking at work. The employee may have to work harder at the job than the other employee to get their collective tasks completed. This may lead to the employee calling out sick because of his or her internal disposition – they are just lazy and do

Paid time off (PTO) is the system employer use to accumulate all kind of leaves as sick days, vacation days, and personal days that allows the employees to use upon need. this policy works mostly in the USA as such no legal obligation for a minimum number of paid vacation days. the PTO works best in the culture and accountable employee’s environment existing. US company’s regulator the amount off the pay day off that will be allocated to each employee. a general way, PTO system cover, everything from planned vacation to sick leaves .and are becoming more common in human resources management. unlike traditional more plans leave, PTO doesn’t distinguish employee’s absences from personal days or vacation days or sick days. Studies show that majority of the companies start using PTO system prior to the year 2000.

-Employees who have the following reason should get up to 12 weeks of unpaid leave: own serious illness, birth and adoption, and take care of a seriously ill child, spouse, and parent. (We guarantee your position with no loss of benefits at the end of the leave)

The most popular form of time off is vacation time, this is typically a time that has to be scheduled off in advance and the time allotted is determined based on employee seniority. The amount of vacation an employee may receive is determined by many factors in the company such as the industry, organization size and locale. Companies tend to offer one to two weeks for employees after they have had a position for one year, and once the position has been held for five or more years the employee will receive an additional allotment of scheduled time off. Paid holidays are nationally observed holidays such as New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas; an employee would normally get this day off with pay or if asked to work would receive additional compensation for working on the holiday. Sick time is for the unexpected time of illness and is generally something that an employee would have to "call out" for, thus notifying their manager that they will not make it to work for that day. Sick time consists of one week or forty hours and can be scattered through out the year. (Bohlander 479) FMLA or Family Medical Leave of Absence is considered an excused absence in the event there is an illness in the family or a health condition with ones self, and the birth of a child. FMLA is something that is doctor approved and an employee obtains a certain amount of hours to use per year. FMLA can be an option that you are not

To motivate employees to work towards reaching organizational goals, managers frequently depend on some form of enticement. Beyond monetary compensation, awards and additional types of acknowledgment can be given, and the ability to choose a work schedule is a possibility. A reasonable pay system, which would be an incentive for individuals and groups to achieve organizational goals, is a hardship manager’s face (Jones & George, 2011). Within the company that I work for, every quarter awards are presented to Customer Service Agents who have maintained a 95 percent or above quality score. Monetary awards are given out as well as time off coupons.