Menu

employee management

unlimited-pto-peoplepersonhr

Unlimited Paid Time Off (PTO): Is It A Good Idea?

, , , , , , , , , , , 0

It seems too good to be true: When you need to, just take time off, as much as you need.

The concept of unlimited paid time off, in which employees are able to take “unlimited” days off and the company is not required to track accrued time off, is an intriguing one. But is it the right idea for your company?

Let’s Not Call It “Unlimited”

Just the name, unlimited PTO, can strike fear in the hearts of business owners. It conjures up images of empty offices and work areas while employees are laying out on beaches for weeks at a time, sipping fruity drinks and taking full advantage of the “unlimited” policy. Here at People Person, we prefer the term “Flexible PTO.” This provides employees with a PTO policy in which they are able to take time off at their discretion, as long as the work is being accomplished and time away does not disrupt company operations. With a flexible PTO policy, you, as the employer, can still set boundaries and parameters as necessary.

The Pros of a Flexible PTO Policy

In terms of a workplace benefit, it’s hard to argue with flexible PTO. It’s a perk that encourages better work-life balance for employees, which in turn should improve overall productivity. According to the Harvard Business School, overstressed employees can quickly become burned-out employees, and the psychological and physical results of that cost American businesses more than $125 billion a year.

Without the traditional qualifications for vacation time, personal time, and sick time, employees can simply take time off, whether it’s for a vacation, to spend a day with an aging parent, or any other reason, because the reason no longer matters. This type of policy also eliminates the problem of trying to anticipate and allocate time off on a year-long basis, so employees never find themselves with unused days at the end of the year.

Moreover, depending on their role in the company as well as job responsibilities, there’s a good chance that some of your employees do work when they’re not actually at work.  According to a 2018 survey by Wrike, about a third of American workers actually work on their vacations, making this time less about a day off of work and more about a day physically away from the workplace.

From an administrative standpoint, implementing flexible PTO eliminates the need to formally track time off. Depending on your state, it can also eliminate the financial burden of having to pay out accrued PTO at the time of termination.

The Cons of a Flexible PTO Policy

While a flexible PTO policy seems great on the surface, some employers still attach a stigma to employees who take “excessive” time off. This can also create interpersonal issues between coworkers, when one is taking more time off than another. A recent study by Namely showed that employees of companies with flexible PTO policies take an average of 13 days off per year, two fewer than those employees with traditional PTO policies.

A policy which provides flexible PTO generally pays an employee when they are off work, as long as the absence is approved. This can create conflict in situations when an employee is taking Family Medical Leave (FMLA), for example. FMLA is a job protected leave, and if an employee is eligible, they can take up to 12 weeks off. Generally speaking, FMLA is unpaid. However, with a flexible PTO policy, the employer would likely need to pay the employee for this time off, considering that FMLA is “approved” time off.

Additionally, switching to a structure of flexible PTO removes a standard reward for employment longevity. Traditional benefit structures reward employees with longer tenures by increasing PTO over time. It also allows some employees to earn additional “wages” through accrued PTO, which may then be paid out upon termination.

Rethinking this structure requires organizations to find other ways to reward longevity, which may not be fiscally or organizationally feasible.

The Bottom Line

So, can a flexible PTO policy work for your company? It depends. It’s certainly an advantage in recruiting and retaining top employees in a competitive job market, but it is also not the right choice for everyone.

Flexible PTO has been successfully implemented in a variety of big-name organizations, from General Electric to Dropbox. Numerous studies show that there are certain key elements that can contribute to a successful flexible PTO policy.

Organizations that switch to flexible PTO need to have a culture of trust in place, clear parameters and expectations, open communication, and a goal-oriented working environment. They should also take care to ensure their reasons for implementing a flexible PTO policy is truly for the benefit of the employees and not solely as a way to save money, whether by removing the need to pay out accrued PTO or cutting back on administrative hours devoted to tracking time off.

Even though it’s called “Flexible PTO,” the benefit does require some structure for successful implementation. Among other things, your organization will want to establish:

  • Parameters for the maximum number of consecutive days that can be taken away from the workplace.
  • A minimum number of PTO days an employee should be taking each year.
  • Policies for prioritizing PTO requests, including a “first come, first serve” policy for employees who want to take time off during the same time.
  • Guidelines for managers and supervisors to follow in communicating the policy, as well as what to do if the policy is abused.
  • Guidelines for employees in how to rethink their productivity with new time-off policies.

Flexible PTO policies challenge a number of common workplace perceptions, from the perceived correlation between longer hours and employee value to how work life vs. personal life are prioritized. The perceptions of customers and clients should also be considered. Depending on your business, there may be certain expectations in place regarding the daily presence of specific employees and roles within the organization. Employees, managers, and cultures that value these perceptions will find flexible PTO policies challenging.

If you are an employer considering a flexible PTO policy, be sure that your first priority is the health and wellbeing of your employees, with the release of the administration and financial burden being secondary. This will help ensure that the policy is implemented in a way that is fair for everyone involved, including the company.

Need help implementing a flexible PTO program?

Your helpful People Person team is here for you!
Let's discuss your company's needs
remote-workforce-positive-culture

How to Maintain A Positive Culture With A Fully Remote Workforce

, , , , , , , , , , , , , 0

With COVID-19 now rewriting how we’re working for the foreseeable future, many American businesses are trying to navigate how to successfully continue on with a fully remote workforce.

Fortunately, there are many things that business owners and managers can do to make this transition and extension of the workplace easier on their employees and maintain a positive culture for everyone.

While many states are currently adapting slightly varied mandates and suggestions about working, one thing remains clear: The Centers for Disease Control are encouraging all those who can self-isolate to do so, and stay home.

Whether your business has already made this transition or is anticipating it soon, one of the first things to do is to ensure that all remote employees have the right equipment and access required to successfully continue working from home.

Studies of traditional workplaces show that outdated and/or malfunctioning equipment not only creates stress, it also reduces morale. Giving employees the opportunity to take home any equipment (computers, printers, laptops, tablets, etc.) that they would normally use, as well as any furniture they may need, is a great way to help establish a comfortable and familiar office space.

In conjunction with this, employers can also help employees take any necessary steps to stay connected. In a busy office setting, internet and phone access is a given, but in a home setting, it may not always be the case. Employees may be challenged by this, and providing temporary hot spots, signal boosters or other equipment will not only maintain productivity, it also shows support for your employees.

Additionally, if your business is relying on new technology to communicate internally as well as with customers, make sure your employees are comfortable and competent in using video conferencing, electronic meet-up rooms, etc. Doing a quick check-in to answer any technology related questions lets your staff know that you are concerned and want their remote communication to be effective, professional and worry free.

Many people now working from home are finding themselves in a somewhat cramped and chaotic environment, with the possibility of multiple people in the home at one time. Recognizing that home and work life are not only merging, but co-existing, will go a long way in maintaining a positive, supportive culture for your workforce.

Keeping video and other online meetings brief, focusing on email communications and providing a little more flexibility in scheduling is something that all employees will appreciate as they juggle their work life and home life. Focusing on the end result of a task being completed rather than when it is completed, is also helpful. Allowing employees to extend and/or modify their workday hours to meet deadlines can help with time management, and lower stress levels.

For example, you may have an employee who also has children remotely attending school from home, as well as a spouse or partner at home. In these homes, everyone can be staking claim to computers, wifi and workspaces at the same time. Your employee may find that the best time to work is early in the morning or later in the evening when the rest of the family is preoccupied with other activities. Offering the ability to flex those at-home hours can be quite helpful for remote employees under the current conditions.

Additionally, giving employees the ability to step away from the job, even for short periods of time, can help them recharge their batteries during these stressful times. Everyone is trying their best to navigate this new normal during the COVID-19 pandemic, and sometimes life can get overwhelming.

Finally, as in a traditional workplace setting, employees still want to feel valued and appreciated. There are many ways that this can be done remotely and without significant effort:

  • Regular individual and team recognition for a job well done through a group email.
  • A direct email that recognizes when an employee puts in extra effort or helps out a coworker is a great way to show your appreciation and keep workplace culture positive.
  • Regular sharing of remote work anecdotes that others on the team can appreciate and identify with during these unusual working conditions. Everyone is in the same boat right now and humor is the best medicine!
  • A quick handwritten card, sent via US mail, or even a small token gift sent to employees’ home addresses, can be a morale booster. Investing in a packet of coffee, a coffee mug, flowers, and even something with the company logo can be a great way to remind employees that their work is appreciated.
  • When employees are allowed to return to the workplace, schedule a team activity that recognizes the effort everyone contributed to keeping things running smoothly.

Nationwide, American businesses and their employees are adjusting to remote workplaces. While this situation may be short-term, American businesses owners and managers are likely to gain some positive knowledge in learning how employees can successfully work remotely. If done right, some businesses may find that they don’t even need a physical office after all.

How can we help you?

Your helpful People Person team is here to help you navigate how to successfully continue on with a fully remote workforce.
Let's discuss your company's needs
covid-19-employer-guidance

COVID-19: GUIDANCE FOR EMPLOYERS

, , , , , , , , , , , , 0

As we all know, the COVID-19 (Coronavirus) pandemic has had a significant impact on employers and employees all over the world. Businesses have been forced to close their doors to comply with stay-at-home orders, and as a result, employees have been impacted by reduced hours, temporary furloughs, and even layoffs. 

Industries that are part of the essential infrastructure guidance issued by the Department of Homeland Security, are permitted to remain open, while taking precautions to keep their employees and their customers safe and healthy. Essential businesses are still required to enforce social distancing and take other steps to prevent transmission of COVID-19.

Still, with more people staying home and some consumers having to cut costs, your business may be slower than usual. This leads to some of us having to make difficult personnel decisions. So, what do you need to know as you are faced with these decisions?

If your business has been financially impacted by the current pandemic, and you are considering a reduction in force, you essentially have three options: reduced schedule, furlough, or layoff.

A reduced schedule consists of reducing an employee’s work hours, and only paying them for hours worked. This is easier for non-exempt/hourly employees, but there are federal and state laws which dictate minimum salary requirements for exempt employees. Be sure to check your state’s requirements before making any changes to an exempt employee’s status. Employees may be able to file for unemployment benefits due to a reduced work schedule.

A furlough is a temporary, usually unpaid, leave of absence. Furloughs are generally used as a cost-saving measure, with the intention of having the employee return to work after a designated period of time. During a furlough, the employee retains their seniority, their health insurance, and other benefits. Note that according to your state’s regulations, you may be required to pay out an employee’s earned wages and accrued vacation time on their last day worked, even if the furlough is temporary. Employees may also be eligible to file for unemployment benefits during the furlough period.

A layoff is generally considered to be a reduction in force. It should be tied to a restructure or position elimination, and not related to an employee’s performance. Employers should be careful not to use a “layoff” as a reason for terminating a poor performing employee. If needed, the business must be able to show a viable reason for the position elimination, and the layoff must be handled lawfully in order to prevent any future claims. Layoffs are treated as terminations under the law, and as such, all final pay requirements apply. A laid-off employee is generally eligible for unemployment benefits.

If you own or run a business with 100 or more employees and are planning to lay off more than half the workforce, be sure to check your requirements under the federal Worker Adjustment and Retraining Notification (WARN) Act. Even if your business does not qualify under the requirements for the federal WARN Act, several states have their own “mini-WARN” laws that may apply. Be sure to check your state’s requirements.

Lastly, it’s important you familiarize yourself with the ‘Families First Coronavirus Response Act‘ which goes into effect on April 1, 2020, and applies to businesses with less than 500 employees. This new law offers paid sick leave benefits (up to 80 hours) and paid emergency leave benefits (up to 12 weeks) to employees affected by COVID-19, including but not limited to self-quarantine orders and school closures. You are also required to post a notice (email is fine for those employees who are telecommuting). The notice must be posted and distributed prior to April 1st.

As the regulations are changing and updating rapidly, it’s important to check federal and state guidelines before making any important personnel decisions. The Department of Labor offers an FAQ page which is updated regularly.

If you need assistance implementing any employee related changes and/or have questions about the laws and how to maintain compliance, feel free to contact your HR Business Partner at People Person, Inc. We are here to assist small and mid-sized businesses through this pandemic and beyond.

Contact Us for Assistance

CONTACT US
happy smiling employees

10 Tips to Attract and Retain Talent!

, , , , , , , 0

Successful business owners know that their biggest asset is not their inventory, their client list or even their brand: it’s their people who make the business successful.

According to the Society for Human Resource Management, a business owner can spend anywhere from 40 to 80 percent of their gross revenue on salaries and benefits. It’s a big investment, so it’s important to ensure that you’re making the investment in the right employees.

The good news is that any business can be a top employer, regardless of size, industry or revenue, by focusing on how to attract and retain employees that can help your business succeed.

Define your mission and leadership

It’s hard to work in an environment without clear goals and inconsistent leadership. Having clear goals and leaders who are on the same page helps current employees achieve success and shows potential employees that everyone on your company is working toward the same goal.

Know what you’re looking for to ensure the right fit for new hires

When hiring a new employee, it’s important to clearly define the role that needs to be filled. All positions in your company should have a well-defined job description, but it’s even more important for a new hire because it will allow you to see if a potential candidate will bring the right skill set, interests and personality to not only meet your employment need, but excel in the position.

Encourage employee engagement

A recent Gallup poll showed that in any given organization, only about a third of the workforce feels engaged at work. For current employees, an environment that encourages two-way communication and rewards employee initiative can keep job satisfaction levels high. For new employees, an onboarding experience that includes an emphasis on collaboration and welcomes input will help establish a sense of engagement as the new employee learns the ropes.

Understand the need for flexibility

Employees value a sense of flexibility and mobility to balance their work and personal lives. Giving employees some latitude in how and when they get work done, with an emphasis on the end result, can help retain your best employees and encourage top talent to seek you out.

Make your recruiting and hiring process as efficient as possible

First impressions do matter: The Society of Human Resource Management reports than 70 percent of workers are likely to stay at a new job for three or more years if they have a positive onboarding process. When hiring for a new job, does your company respond promptly to candidates? Do you make hiring decisions in a reasonable amount of time? When bringing on a new hire, are your processes streamlined and efficient or do they include endless hours of pre-employment orientation and paperwork? Those first few tasks create a strong, lasting impression on new employees and can set the tone for how they view your company.

Understand the generational differences in how we communicate and work

All stereotypes aside, each generation in the workforce does have generalized communication and feedback preferences. Depending on your workforce, you may need to brush up on their generational preferences – some prefer more independent working environments while others prefer more direction. But there are two things that workers of all ages value: constructive feedback and praise.

Give your wage and benefit package a checkup

Numerous studies show that employees consistently rank job satisfaction higher than wages, but compensation is important. If your company is a compensation leader, or offers a better-than-average benefit package, you’ll naturally be at the top of candidates’ lists. And don’t overlook low-cost perks – these small efforts can boost an overall package to the next level.

Embrace technology, and keep it up to date

Today’s employees expect that technology will be a part of their jobs and with that expectation is that any equipment will be efficient and up-to-date. Ensuring that computers, software, printers and any issued equipment are current and in good working order is not just a capital investment, it’s an investment in employee job satisfaction and efficiency.

Offer opportunities for personal development

Smart employers value smart employees, and offering opportunities for continuing education and advancement are key for keeping long-term employees. Small businesses may not offer a large career ladder to climb, but they can offer the ability for employees to become experts in what they do and learn new skills.

Listen to current employee feedback, good and bad

It takes a lot for employees to provide feedback, especially negative feedback. If you’re hearing common themes from employees, listen carefully: it may be an area that needs extra attention. Positive feedback is also a great way to ensure your business is on the right track. An employee that feels as if his or her opinion is valued is an employee that will stay.

We hope you found these tips helpful. If you have found other ways to attract and retain top talent, we would love to hear about them in the comments below!

How can we help you?

Your helpful People Person team is here to assist you with your employee retention needs.
Let's discuss your company's needs