Paid
Time Off
Although it may seem straight-forward,
paid time off is a complex issue. Further,
many companies have updated the structure
of their paid time off. Previously, many companies
had a set number of vacation days and another
number for sick days, both of which were considered
paid time off. However, many organizations
have decided to simply offer a block of personal
days which may be used by the employee for
various reasons. The number of days allotted
is usually defined by the amount of time an
employee has been working for a company, with
the most going to those who have been there
the longest.
One major reason employers choose to use a
block paid time off plan is that is appealing
to potential employees, giving the company
greater recruiting power. Further, a paid
time off plan reduces the incidence of employees
lying about sick days.
A PEO or employee leasing company can assist
you in defining your paid time off to make
benefits clear to employees. Having a set
amount of days for paid time off not only
provides a resource to which employees can
turn, but it also provides a clean-cut definition,
reducing confusion. Further, a PEO can track
the amount of paid time off an employee has
used and note it on their paycheck
to ensure each employee gets the right amount
of time.
Talk to your PEO to see how they can help
you define your paid time off plan and to
see what services they offer in the area.
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