“How much paid leave will I get?” is a common question of people considering joining your company.
Part of the perks employees are looking for when they join a company or are considering staying with an organization – is paid leave, or paid time off.
In most cases, companies are not obligated to offer employees paid leave, but many long-term and full-time employees feel entitled to their 10 days a year – not to mention all national holidays (such as Thanksgiving, Christmas and other federal holidays). They wouldn’t and don’t think how expensive paid leave is to an organization.
So what does an employer do? To keep good people, you have to offer paid leave – but it can be hard to find the money to do so, especially if you are a small company. Fortunately, there are a couple of strategies we can recommend that can make paid leave less expensive.
Paid Time Off Plans
Instead of splitting leave into sick days, personal days and vacation days, some companies put it all into one bucket under the name paid time off (PTO). This has two benefits: it cuts down on administration, and it means that employees may be happy with less leave, since a PTO package gives them more flexibility of choosing when they are at work and when they are not.
Unscheduled Leave Reduction
While all paid leave is expensive to an organization, unscheduled leave has the biggest impact. Unscheduled leave affects all team members, with other scrambling to pick up the slack of the person absent. It can mean missed deadlines and even lost clients. That is why many companies have an incentive plan to reduce unscheduled leave.
We want to make sure you know some of your options so that you can effectively communicate this to employees and offer an attractive package to your staff without too much impact on your business operations.