Paid Time Off { PTO }

Paid time off (PTO) is a benefit program offered by many companies which allow employees to take off for a specific number of days and still receive compensation. This generally includes absences related to vacation, illness, or personal circumstances.

Benefits of Time off

• Provide more vacation time for employees who don’t use the banked time for other things.
• Employees can use the hours as needed when unforeseen situations arise, as long as the time is available.
• PTO policy enforcement can serve as a recruitment incentive to attract employees.
• More frequent, shorter vacations as desired can help maintain a work-life balance.

Disadvantages of Time off

• When an employee quits, management still has to honor paid time off commitments.
• Employees may run out of PTO and be required to work while sick or lose pay.
• Multiple employees may want to take the same days off at the end of a year to avoid losing paid time off hours.