Joan believes Superior’s current time off policy creates an incentive for employ

Question

Joan believes Superior’s current time off policy creates an incentive for employees to call off at the last minute. She has learned from supervisors that many employees use their sick days to take care of personal business such as attending parent–teacher conferences or running personal errands. These are often events that could be prescheduled time off, but employees do not feel they have a time off option to address such needs. Sick days can’t be prescheduled, and vacation days are often already committed at the beginning of the year. Joan believes that changing the time off policies could reduce the number of unscheduled absences, but she is not sure if her idea will address her concerns. She is considering replacing the current vacation/ sick day allowance with a paid time off (PTO) bank. Employees would receive 12 PTO days each year. They would be permitted to schedule preferred days off at the beginning of the year so that they can make vacation travel plans, and the remaining days could be saved for days when the employee is ill or could be scheduled ahead of time to take care of personal business. Joan believes this change will encourage employees to schedule their time off in advance when possible. With advance notice of absences, supervisors will be better able to plan projects and meet deadlines. Questions: 9-8. Are there any disadvantages to offering PTO?

Explanation / Answer

Are there any disadvantages to offering PTO?

When PTOs are given, the onus of planning their leaves remains on the employees. As a result, some of the employees will try to utilize these leaves in vacations earlier in the year. Due to this, they can run short of leaves and will not get enough leaves remaining when the actual urgency of personal work or sickness happens. It has been found in some studies that employees given options of PTO try to perceive them as vacation options, expend all leaves in vacation or leisure and then come to duty even with sickness. This results in poor health of the employees and co-workers leading to more unplanned leaves. Furthermore, employees (especially in the USA) tend to observe PTO as a benefit and use all of the time off, which they may not have in the past.

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