Two tiered PTO systems

Rockie

Do any of you have any experience where a company operates on two Paid Time off systems (Ex. Existing employees are grandfathered in at a higher level and then employees coming into the system are at a lower level). Please let me know how you implemented this and how it has worked out. Thanks!

dhnyct

Sounds like an administrative nightmare--not only in recordkeeping, but also as a potential morale problem. Depending on the actual impact of the lower rate, how about a one-time adjustment for the employees who would qualify for the grandfather status?

felicia_matthews

The last company I worked for had a two-tier system for Executive employees and all-other employees. Executive employees began earnng PTO immediately upon hire (the first day of the month following start) and at a higher accrual amount. After completing 5 years of employment, their accrual rate then changed in line with all other employees'. It was in fact not an administrative problem at that time, but it would depend on what type of tracking system you are going to use in relation to how many employees affected. From a morale standpoint, I think most employees understand that "grandfathered" employees many times receive 1-2 different benefits than most, as a result of a buy-out, merger, etc, and are accustomed to this.