By ProspectHR Consulting Director of Business Operations, Alexandra Lewis
Today’s employees insist that employers recognize the need for flexibility and work-life balance, and paid time off (PTO) is a common approach to addressing these expectations. Although leave policies vary from employer to employer, depending on work culture and staffing needs, every policy should spell out these basics:
Time Off Categories
The most common forms of PTO are vacation, sick and personal days. Some employers keep each category separate, providing specific amounts per class — for example, 10 vacation, five sick and three personal days. Other employers roll these categories into a single bank, empowering employees to request PTO without designating a reason.
Additionally, many employers offer paid holidays. The average number of paid holidays is seven to eight and typically includes New Year’s Day, Memorial Day, July 4th, Labor Day, Thanksgiving and Christmas. Providing one or two floating holidays will allow staff to observe other celebrations important to them.
Accrual Rates and Timing
The amount of leave provided is a key consideration. Equally important is whether every employee receives the same amount of time off or if there will be tiers. Some employers grant additional time off based on position or upon reaching significant anniversaries with the organization.
There are two methods for conferring PTO: accrual and lump sum. In accrual situations, employees earn a certain amount of time off for every hour worked; in lump-sum scenarios, the company grants a set number of days at a specific point in time, such as the beginning of the calendar year or the employee’s anniversary date.
Policies should clearly state if you allow unlimited days, whether there is a cap on the number of days banked, and if earned time rolls over from year to year or is forfeited.
State laws may shape your policy. They may require a minimum number of sick days, prohibit use-it-or-lose-it policies, or require cash payouts for unused PTO.
Eligibility Criteria
Your policy must also address the following question: Who is eligible to participate in your program? Does your program apply only to full-time employees? Is there a waiting period (e.g., three months) before using or accruing time off?
Policy Administration
Following standard procedures will ensure fair, consistent policy application and smooth operations in your office as employees use PTO. Clear communication of the request and approval processes will help avoid confusion and minimize employee complaints.
If thoughtfully employed, PTO can be an important part of a robust benefits package that not only helps you attract the best talent but also engages and retains a productive and loyal workforce.
Alexandra Lewis, Director of Business Operations and HR Consultant
Alexandra Lewis is a seasoned professional with over 10 years of experience in HR and operations for both non-profit and for-profit organizations. Prior to joining ProspectHR, Alexandra honed her skills in a Human Resources role within a professional membership organization and played a critical role in employee and Board member retention. This experience gave her a unique vantage point to identify operational challenges, identify HR’s role and develop strategic solutions that enhance organizational efficiency.
Alexandra’s diverse background enables her to blend her knowledge of organizational structure with a customer-focused mindset. Currently, as the Director of Business Operations for ProspectHR, Alexandra manages client onboarding and success, ensuring a seamless experience for clients. Her ability to spot patterns and tackle complex problems makes her an invaluable asset to her team. Alexandra earned a B.S. from Florida State University.
