The summer months are filled with hot temperatures and the break from school. Traffic is easier during these months without the school buses running! Taking a much-deserved break is important for ALL employees!
As experts in Human Resources (HR), the Davidson Group knows the importance of considering the impact of different vacation policies. We will discuss a few of the popular options.
Paid-Time-Off (PTO)
No federal policies regulate PTO, which provides for a lot of flexibilty. However, there are several important things to consider when implementing your PTO policy.
- Is there a waiting period to use PTO?
- How much PTO is earned each year?
- How does an employee schedule their PTO?
- If an employee has unused PTO, how much can be rolled over to the next year?
- What happens to PTO when an employee is terminated?
Mandatory Vacation Dates
Some industries like to schedule mandatory vacation times for their employees. This is popular in manufacturing and technology companies. Benefits of this vacation type include strategic planning for these scheduled shutdowns. It can support employee well being by ensuring everyone gets a much-needed break. It does simplify the question of when the next vacation is coming.
Unlimited Days Off
It is estimated that nine percent of companies provide unlimited vacation days. These include large tech companies like Netflix, HubSpot, Roku, LinkedIn, Dropbox and Oracle. It also comprises global conglomerates like Sony Electronics and General Electric. There are advantages and disadvantages to this vacation structure. As long as there is a manager approval system in place, it can save time for the HR team. It also saves money as companies do not have to pay for unused vacation days. This is a huge recruiting tool and has been proven to boost employee productivity. Cons include that some employees abuse the policy, while others never take time off work. This vacation style works well when senior staff lead by example and employees are encouraged to take days off. This requires good communication between employees and managers so days off can be staggered with an appropriate approval time.
Contact the Davidson Group to ensure your vacation policy is aligned with your organizational goals.
