Question

Why are paid time off programs gaining popularity in today's work environment? Why do employers use them? Consider issues such as age, controlling unscheduled absenteeism, recruitment and retention. What does the data show? As always, support your statements with credible research.

Answer 1

Paid Time Offs include sick days, vacation days, and personal days that can be availed the need or desire arises.

Benefits for Employers:
1. The employee will take PTO in advance, allowing the company to plan around the absence and control unscheduled absenteeism.
2. Tracking PTO is less onerous for management than tracking personal, sick and vacation days.
3. It promotes Work Life balance, which is a high priority among younger workers-  Age, Recruitment and Retention factors (a company promising a higher PTO will find it easier to recruit and retain workers!)

Some stats I could gather:

1. As of 2012, nearly one in five employees in the United States receive leave in the form of a PTO bank plan, but the contours of such policies are often little understood—especially outside of the human resources community.

2. A longitudinal study conducted by WorldatWork of over 1,000 organizations of different sizes concluded that over recent years, PTO plans have become more actively utilized by the general workforce. In 2002, about 71% of organizations were using traditional distinguished paid time off system, and about 28% were utilizing the PTO bank-type system. As of 2010, the use of the traditional paid time off system decreased to 54%, while the use of the PTO bank system increased to around 40% of all organizations.