Managing a Flexible PTO Policy

Jul 14

Flexible PTO (paid time off) policies are a type of employee benefit that allows employees to take time off as needed, as long as their work is completed on time. As the name suggests, these policies are more flexible than traditional PTO policies, which offer a set amount of time off each year.

According to research by Nielsen Consumer Research, 54% of surveyed employees in the US don’t take vacation time because they prefer to save their PTO for an emergency, and 34% of employees never take vacations with their family. Accrued or traditional PTO policies can leave employees feeling restrained by the amount of personal time they are allowed to use. This is where flexible PTO policies shine! Flexible PTO policies are a great way to support your employees while also ensuring that your business runs smoothly.

In this blog, we’ll dive deeper into the benefits of a flexible PTO policy and provide some tips for establishing and maintaining one!

Benefits of a flexible PTO policy

A flexible PTO policy can offer benefits to both employees and employers. According to a survey from Smallbiz Trends, 66% of workers feel they do not have work-life balance in their lives. The study also found that 79% of employees believe flexibility promotes work-life balance. Creating a flexible PTO policy that encourages your team to take time off is a fantastic way to balance out the work life scale. On the side of the business, flexible PTO policies support the same positive results. According to a Zippia study, 79% of workers believe that a flexible schedule allows for a better work-life balance. These stats highlight the importance of flexibility and work life balance for employers and employees.

Here are just a few more benefits:

Increased employee satisfaction: A flexible PTO policy gives employees more control over their time off, which can lead to increased job satisfaction, and more engagement.

Reduced burnout: Allowing employees to take time off as needed can help support mental health and work life balance, key elements of reducing burnout.

Improved recruitment and retention: Offering a flexible PTO policy can make your company more attractive to job seekers and help retain your current employees.

Enhanced company culture: Creating a culture that values work-life balance and encourages employees to take time off can improve morale and create a more positive work environment.

Tips for establishing and maintaining a flexible PTO policy

Depending on your current time off policy, implementing and maintaining a flexible PTO plan may not be that much of a change. It is important to point out that flexible PTO policies do not support ‘unlimited’ time off. Time off will still be submitted for review and approval, performance expectations and role responsibilities remain the same. Flexible PTO simply opens the opportunity to enjoy time off without the worry of wasting them.

Here are some tips to help you get started:

Determine the parameters of your policy Before you can create a flexible PTO policy, you need to understand the needs of your team and your business. Offering a flexible PTO policy opens the door for more employee time off, which is a great opportunity to build employee happiness and wellness, but you need to understand the limits of what your company can handle. When you build your policy, ensure the parameters and process is clear for everyone involved.

Be clear about expectations Ensure your employees understand how much time off they're allowed to take, how much notice they need to give, and any other relevant details. Flexible PTO policies are meant to encourage employees to take more time off, but clarity is required to avoid anyone misunderstanding.

Encourage employees to take time off One of the biggest benefits of a flexible PTO policy is that it can help reduce burnout and increase employee satisfaction. However, this only works if your employees actually take time off! Encourage your employees to take advantage of their time off and create a culture where taking time off is seen as a positive thing.

Monitor and adjust the policy as needed Once you've established a flexible PTO policy, it's important to monitor it to make sure it's working as intended. Keep track of time off requests and make adjustments as needed to ensure that your business is still running smoothly.

Communicate the policy clearly and regularly Make sure your employees understand the policy and any updates or changes you make to it. Communicate the policy clearly and regularly through company meetings, email, or other communication channels. This ensures that employees of all tenures are aware of the changes and are given the resources to learn more.

Summary

We hope that this blog has offered some insight about flexible PTO and possibly inspire your organization to entertain the though of implementing a flexible PTO policy of your own! Thank you for your continued support and remember to keep it wavy!

HENSLEE is so grateful for the continued support of our community. If you need help with a flexible PTO policy, or any other People Ops related project, please contact us here!