Converting To A PTO Bank: A Comparable Amount Of Time Off With Fewer Unscheduled Absences

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The Alexander Hamilton Institute (AHI) has just released its annual 2008 Survey Of Traditional Time Off And PTO Program Practices. Organizations of all sizes and industries can use the results of the survey to benchmark their paid leave policies against competitors to increase employee retention. The survey report also includes valuable information for organizations that are contemplating coverting to one PTO bank from the traditional policy of separate leave banks for vacation, sick and personal time off.

Want to reduce unscheduled absences? Then convert from a traditional time off (TTO) program, which deducts sick, personal, and vacation time from distinct banks, to a paid time off (PTO) system, which combines leave into one bank, reports the Alexander Hamilton Institute's (AHI) 2008 annual Survey Of Traditional Time Off And PTO Program Practices.

Some TTO users told us the reason that they haven't converted to a PTO program is because they feared even more employees would call out without first scheduling the time off. Those fears appear unfounded, since approximately two-thirds (69%) of PTO users reported that, on average, an employee misses four workdays or fewer due to unscheduled absences each year versus only 57% of TTO users.

Forty-four percent of PTO users went on to report that the number of unscheduled absences since converting to a PTO program dropped by more than 11%. Switching to a PTO system also caused a quarter of respondents to experience a decrease in the number of employees requesting to take unpaid time off or to borrow time. Overall, 80% of PTO respondents praised the system for meeting their expectations; 16% lauded it for exceeding expectations.

With results like these, it's no wonder that almost half (49%) of TTO users were considering a switch to a PTO system. Of those, only 15% plan to make the switch with a year, though. Most are still exploring (35%) or undecided (25%). Something that might be holding them back is the perception that they'll have to give employees more time off under a PTO system. However, based on survey results, the total amount of time off granted in a TTO program is comparable to that of a PTO program.

Survey Provides Benchmarks For Employers

AHI's 2008 Survey Of Traditional Time Off And PTO Program Practices provides an analysis of both types of paid leave programs according to company size. In addition, the results are sorted by industry so employers are able to discern how their time off program compares to organizations that are similar to theirs. To order a copy, visit:

AHI Paid Time Off Survey Results or call 1-800-879-2441.

About The Alexander Hamilton Institute

AHI (http://www.legalworkplace.com) has been providing employment law and management information to Human Resources managers, front-line supervisors, and small business top management for more than 20 years.

For more information about the survey, contact Melissa Pomerantz at mpomerantz @ ahipubs.com or 201-825-3377 ext. 110.

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