We Be-leave in You!
A couple of months ago we talked about unlimited vacation, and I still question whether it means the same thing to everyone. Heck, it doesn't even seem to accomplish the goal of giving our teams more time off.
And that's why paid time off is a thing to consider. But surprisingly, according to the Bureau of Labor Statistics, only about three-quarters of private employers in the U.S. offer paid leave.
What are the benefits of paid leave over vacation? Keep reading to find out.
If you love someone, let them (take) leave.
Before we go any further, let's talk about the difference between vacation and paid leave. PTO is considered to be any time an employee is getting paid while away from work—it’s more all-encompassing than “vacation.” Think of it like this: all vacation is PTO while not all PTO is vacation.
It’s more than just vacation
Vacation time is what we usually associate with leave, but there are other kinds of time off to think about too. In the U.S., employees are entitled up to 12 weeks of family medical leave for needs like having a baby or caring for a loved one. Although it’s only required to be paid leave in eight states and D.C., it’s becoming more of a selling point and a way you can stand out to prospective hires. Other leave types include bereavement, mental health days and even a few hours off to vote in local and national elections.
Benefits of PTO over vacation
The main benefit is the flexibility for everyone to be able to take time off for whatever they need. I would suggest you don't make them explain why they need the time off either. Because it's part of their compensation you don't have to. This leads to another benefit, you don't have to track different buckets of time (vacation, sick, personal, etc.) across the whole team. This also means employees don't feel the need to lie or hide if they're going to a doctor's appointment or their kid's dance recital. There's time allotted for whatever you need.
Potential negatives of PTO over vacation
Unlike personal or sick days, which may not get used, employees are going to use all of their PTO because of the flexibility. So a positive for your healthy folks, but it does take more work time away from the bottom line.
And some folks may decide it's not worth staying home if they're sick so they don't use up their PTO. It's not the problem it once was as more people are remote now, but it's still worth keeping an eye on.
Also, unused PTO may need to be paid out if they're leaving the company. This depends on where you're located. Nobody ever has to pay for unused sick days.
It’s up to you
Every shop is different and has different needs, but there’s a common human element for all of us. When it comes to leave, you should put your employees first unless it's going to hurt the business. But however much leave you decide is fair, you need to let people take it without feeling guilty. I can’t stress that enough: You can’t get crabby when they use a benefit you gave them. Offering more than you want them to take to win the fight for talent is disingenuous and leads to resentment on both sides.
To a lot of people, paid time off is as important as salary. So give it careful consideration as a part of your compensation. It shows a level of trust in your employees that they will be rewarded by working harder and giving you their best effort.