I spoke about Paid Time Off (PTO), Systems during a recent audioconference. Following the seminar, I received the following question from a participant. I imagine many others have had similar concerns about making the switch from a traditional time-off system, where vacation, sick, and personal time are all separate and treated differently, to a PTO system, where all time off is lumped together in a “bank” from which the employee can withdraw, regardless of the reason.
Q: We are considering switching to a PTO bank for paid time off. We discovered that we have some employees who have built up huge banks of personal and sick time that we have traditionally allowed to be carried over from year to year. Until recently, we “bought back” sick time at the end of the year, so long as the employee had at least five years of service and had accrued a minimum amount of sick time. Now, we pay out unused vacation and personal time but sick time is forfeited. As we plan our PTO policy we wanted to limit the carryover of PTO to 10 days (80 hours) at the end of our fiscal year.
Can you provide me with examples of what other companies have done when implementing a PTO system to handle situations where people have extremely large banks of time to be converted to PTO?