Sick of Sick Leave? Consider PTO

Anita,

I’m in HR for a medium-sized company. I’m really tired of monitoring sick leave abuse. Our policy allows sick leave to be used for an employee’s own illness or medical appointments, as well as the employee’s immediate family. But it seems everyone has doctor’s appointments on Fridays, headaches on Mondays, and comes down with the flu during March Madness! It’s not fair to those of us who never take a sick day.

Dear “Policy Police,”

HR_HeadacheAttendance reporting, corrective counseling, verifying doctor’s notes, and meting out disciplinary action can take a copious amount of management time. My advice: Get out of the baby-sitting business by instituting PTO – one bank of Paid Time Off that combines vacation, sick days, and personal days.

Less supervisory oversight is just one of the advantages of PTO. Before making the switch, however, consider both the pros and the cons.

Pros & Cons of a PTO Policy

PRO: While private sector businesses are not required by law to provide paid sick or vacation time, most companies realize that offering PTO attracts and keeps employees, even more so than traditional sick/vacation/personal day policies.

CON: PTO tends to be viewed as one big vacation time bucket, so employees may take more time off than with a separate paid sick day/vacation day system. This could mean more staff coverage must be arranged.

PRO: Many companies find employees take fewer unscheduled sick days when they have the opportunity to plan and use PTO. Supervisors will likely get more notice of absences and find it easier to find coverage in advance than when someone calls in sick at the last minute.

PRO: No need to fake it! Employees like to be treated like adults rather than required to bring doctors’ notes. (And really, in this day and age, it’s incredibly easier to forge excuses than it was back in junior high when trying to ditch gym class).

Sick at WorkCON: People may come to work sick – spreading their germs – to save their PTO for a 2-3 week vacation. In the long run, this propensity could cause even more absences office-wide.

PRO: PTO can be used equally by all employees, including who get sick less frequently or don’t have to take time off for dependent appointments (whether child or parent).

CON: Like the unwise green protagonist in The Ant and the Grasshopper fable, some employees may use up all of their PTO for vacation time, creating a hardship when they or a family member becomes ill. (But adults need to accept the consequences of their actions.)

PRO: PTO is easier to administer, which can mean cost savings.

CON: In some states, the law treats PTO like vacation time when it comes to calculating final wages at termination. While companies generally are not required to “cash out” for sick time, businesses could end up paying out more for PTO.

One last California CON: If your company is in California, PTO may not meet the minimum level of benefits mandated by the Healthy Workplaces, Healthy Families Act (HWHFA), especially for part-time workers.

Readers: What do you think are the pros and cons of a traditional vacation/sick day policy versus PTO?

Do you have a job-related question? Ask Anita.

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RELATED POSTS:
Proper Use of Sick Days
Asking for Vacation Time
The Importance of Vacations

3 Comments (+add yours?)

  1. Garry V.
    Apr 27, 2016 @ 12:59:02

    My last employer switched to PTO vs vacation, personal holidays and sick time. Yes, everyone used their PTO but there were fewer instances of employees calling in sick when, in fact, they needed to take the day off for something else. So they made arrangements in advance so their manager knew they would be off. I think PTO is a good idea for any company that currently offers vacation and sick days separately.

    Reply

  2. Todd Hicks
    Apr 26, 2016 @ 23:09:47

    The pros outweigh the cons.

    Reply

  3. Tiffany Lieu
    Apr 26, 2016 @ 14:49:37

    Well, the system would not have accepted traditional/vacation sick day policy over the years if it did not meet inflationary standard. So, it was a win-win for employers and employees with very little overcosts if any. With PTO, companies can combine vacation, sick days, and personal days of the employees as benefits that looks like cost saving enough to me more than before. Some bosses find payroll very burdensome; they have a breather with PTO now as employees are obligated at some point to take more days off than in the past or there might be unfavorable employment criticisms compromising their employment tenure.

    Reply

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Disclaimer

Anita Clew's blog posts are intended for general guidance and should never be taken as legal advice. In all instances where harassment, inequity, or unfair treatment is believed to be present, please consult your HR Department or legal representation.
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