Fact: life happens. Medical emergencies, school closures, family vacations, burnout…the list goes on. So, what does this mean for you as an employer? It’s important cognizant of your employees’ lives outside of the office. Without time for themselves, the productivity and satisfaction of your team will suffer. This, in large part, is why should offer a well-structured paid time off (PTO) plan.
PTO plans are a standard benefit offered by many employers. While PTO plans are an excellent way to attract and retain top talent, understanding their true impact on your employees is essential.
According to a recent study, employees who reported that their company encourages vacation (68%) are much happier with their jobs than those who work at places where either vacation is discouraged or managers are ambivalent about taking time off (42%).
Of course, employee retention and happiness is always a major benefit, but PTO plans can have an even greater impact.
PTO Helps to Mitigate Burnout
The World Health Organization (WHO) included burnout in its 11th revision of the International Classification of Diseases (ICD-11) as an occupational phenomenon. Symptoms of burnout can include diminished desires to learn, lack of motivation to work a full schedule, and even physical ailment.
A study by Kronos shows that nearly half of HR leaders say burnout is responsible for up to 50% of annual workforce turnover.
Everyone needs a break, especially before burnout starts to kick in. A PTO plan is sure to help mitigate these stressful factors. PTO gives employees a chance to recharge and return to work refreshed and ready to tackle new challenges.
If you need additional help with employee burnout, download this Burnout Prevention Handbook.
Take Your Company Culture to New Heights
A company culture worth bragging about should always be a priority for employers. In some cases, providing PTO is a sign of empathy. If an employee doesn’t feel as though they can tend to commitments outside of their job, it’ll have a negative impact on how employees act and interact in the workplace.
Offering PTO can reduce absenteeism and improve employee morale, leading to increased productivity and job satisfaction. Additionally, PTO can be a cost-effective way to compensate employees.
Structured Plans are Simpler to Manage
There are risks that come with PTO plans, but if managed properly, these risks are almost insignificant. Employees could potentially take advantage of their PTO options, thus the reason you need to keep a close eye on it.
To mitigate this risk, some employers have implemented policies that require employees to provide advance notice when taking time off and limit the amount of PTO that can be taken at one time. This may seem extreme, but policies like that are never one-size-fits-all. You need to create a unique plan that works best for your workforce. If you still find it challenging to create a PTO plan or manage the payroll issues that comes with it, schedule a diagnostic with the team at VensureHR to learn more about how we can impact your HR and employee retention efforts.