PTO

JeannieS

We've discussed changing to PTO vs vacation/sick, but I feel it would be more costly. Currently employees get 6 regular sick days and 6 long term sick days (can only by used if an employee is out for 3 or more days if they are out of regular sick time). The long term sick days usually end up being used when someone is out on family medical leave, however, for many employees, these hours are rolled over every year and never used. If an employee leaves, any remaining sick time is forfeited. If we changed to a PTO we would not know what is vacation and what is sick, so I tend to agree that changing to a PTO program would actually be more costly.

LindaS

Actually I disagree - think of the time spent obtaining the necessary verification for an employee to use a sick day. PTO would be provided to an employee and it would be up to them to use it as they need it. It takes supervisor's and management away from having to get into an employee's "mess kit" and allow them to focus on getting their jobs done.

NaeNae55

You could always combine vacation and regular sick, and continue to accrue the long term sick separately. And how about if the long term sick would only be available to FMLA or work comp situations?

Good luck!

DMG

We went to a PTO plan this year because of the potential cost savings vs. our previous plan. If you are concerned about the difference in vac vs. sick, do like we did. We establish a bucket of 56 hours every January (40 hrs paid, 16 hours unpaid) to be used each year. This is in addition to their eligible vacation hours that are tracked separately. We also have short term and long term disability in addition to this. We have a generous program for our associates, but they don't think so.

We realized that by estblishing a PTO plan more people would probably take advantage of the time off. However, we calculated that our abusers were taking enough time off during the year to average 56 hours off per employee anyway. Our intent was to control the abusers.

System

I agree with Linda. We switched from vacation/sick to PTO's a couple of years ago and it has worked really well. The ee's earn PTO's each pay period and they can use it anytime they chose as long as the days off do not impact the workload of others. We also limit the maximum carry-over each year. Our PTO's are extremely generous. EE's start earning PTO's immediately upon hire at the rate of 16.66 per month with increases on their 5th and 10th year anniversaries. Only 480 hours can be carried over - total. Should an ee resign they are allowed to be paid only 40 hours (if they have that amount)and any remaining hours are forfeited. The agency also allows an ee to request a one-time pay-out of 40 hours per year in lieu of taking the days off. Our agency has to look at over-all benefits to allow for increases that can or will be assessed to the ee in the way of health and dental increases and try to compensate in other areas. PTO flexibility was one of those areas. It gives the ee a little more control of their earned hours and believe it or not, the ee's are more cautious of spending those PTO hours and the morale is amazing. Tracking of time is greatly reduced also. The agency also pays for 11 holidays per year. Keeping quality employees is key, so look at the overall picture of ALL benefits and see how that might come into play. Good luck.

E Wart

E Wart
I have set up a paid time off plan for one of my prior employers. It lumped all time off, vacation, sick pay, berevement, personal time all together. Yes, I agree that the first year it may be a little more expensive because employees have to get the prior year and then start earning the new years time. (However, if they use it up, they don't have any for the next year except as they earn it.) However, it is so much easier to administer and saves you as well as supervisors a lot of time.
(I also agree about the previous comment on the "abusers" of the old plan who aren't sick get the time in anyway and you are penalizing the well or honest employees.
You seem to be concerned mostly about the termination pay out. You need to check your states requirements, but most of the time you can set up a limit.. such as you will pay up to 60% of the PTO bank, with a maximum of 20 days. or whatever you want to establish. Also you can establish a maximum that can be "carried over" from one year to the next, so the employee doesn't end up with 2,000 hours.
It is all in how you want to design the program (within the state and federal laws of course.)
Let me know if you want me to fax you a copy of my prior employers old plan. I think it is simple. [email]ewarthen@newcombspring.com[/email]