PTO benefits banks, or PTO banks, have become common in big businesses.
What is a PTO Benefits Bank? What are the benefits of a PTO benefits bank? See why you may want your insurance broker to switch help a PTO bank for the upcoming fiscal year.
What, Exactly, Is a PTO Bank?
PTO refers to “paid time off,” or “personal time off.” It "banks" time off, accumulating paid time for future use, just like banking cash in a savings account.
Unlike traditional leave plans, PTO banks pool sick, vacation, and personal. Employees use PTO banked hours to fit their own circumstances.
How Do PTO Benefits Banks Allocate PTO Days?
PTO bank beneficiaries get a set number of PTO hours each year. Companies either roll over or expire the hours ("use-it-or-lose-it") at the end of each period.
PTOs generally cover the death of a loved one (bereavement) or civic duty leave (jury duty or military duty), but not ...
What Are the Benefits of a PTO Benefits Bank?
Understanding the benefits of a PTO benefits bank clarifies how big businesses and employees come out ahead. Here are some of the reasons to ask your insurance broker to tell you more:
Visible Equitable Benefits of a PTO Benefit Bank
Traditional leave benefits systems issue sick days to employees who provide evidence of being sick: prescriptions, clinical memo, etc. That means fewer days off for healthy, rule-abiding employees.
Employees get vacation time only after corporate review and approval. People who are busy helping you, have unpredictable schedules, or have unique keystone capabilities may get fewer days off than other employees.
PTO benefit banks give everyone the same amount of time off. That’s equity.
The PTO Benefits Bank Rewards Honest Use of Benefits
Inequitable traditional leave allowances can leave exceptional employees feeling slighted. They may feel that only employees who get sick or willingly lie or cheat actually get all their sick and vacation days. Likewise, employees embarrassed to discuss their colonoscopy or marriage counseling may miss out on sick days requiring written proof.
That blemishes a healthy corporate culture. It tells employees: “HR rewards lying.” The equitable allocation of PTOs, conversely says: “No one in your company should have to lie or cheat to get their full benefits.”
Recruiting Benefits of a PTO Benefits Bank
According to HR Magazine, “many employees prefer PTO programs for their flexibility.” If your workplace uses a PTO system, it will draw job candidates.
PTO Benefits Banks Simplify Administration
PTOs do not discern among accrual leave types (sick, vacation, or personal), so HR teams can manage them faster, with less hassle. The simple benefits of a PTO benefits bank come from:
No separate accrual accounts
Less data entry
No hunting down employees to find out what kind of leave they took
No gray areas
No delayed or correction of misunderstood accrual types
No stress about medical or other personal details
No time-consuming description of justifications or approvals
The employee's happy, the supervisor's happy, and the HR staff are happy.
Properly Administrated PTO Benefits Banks Save Money
Simplified administration means that your HR staff saves time and stresses less. When HR saves time, your business saves money.
Employees in PTO Benefits Banks Manage Their Own Benefits
PTO use-it-or-lose-it accrual caps motivate employees to take control of their benefits. They feel empowered. When employees take the initiative to exercise their benefits, they begin to understand, manage, and appreciate them.
If the benefits of a PTO benefits bank seem good for your employees, you can loosen up your company budget and HR staff calendar by switching over. A qualified insurance broker can help you make it happen.