Employee Time-Off Models (Traditional, PTO or FTO): What’s Right For Your Organization in 2021?

WHY ATTEND

It’s a cliché: an employee wants to take a day off and calls in to report he has suddenly (cough cough) come down with a nasty cold. The next day, there are rumors he was off fishing.

You could challenge him on this, but you’ve got better things to do than get into a counterproductive argument about whether he was “really” sick. What if you could just consider it one of his allotted days off and not worry about the specific reason he used it?

For many high-performing organizations, that’s the smart move. Companies are increasingly making the switch to a PTO “bank” system that combines all time off (sick days, vacation, personal days, etc.) into one group that employees can use however they’d like (with a few conditions, of course).

Others are taking a more controversial approach and offering unlimited, untracked Free Time Off (FTO). As long as all the work gets done, employees are told to take whatever time they need. It’s not an option for many organizations but some swear by it.

The bottom line: PTO Banks and FTO approaches offer a cost-effective competitive edge in the hiring market. Companies who offer a chunk of PTO or unlimited time off to potential employees, rather than rattling off a laundry list of types of time off, are often seen by candidates as more flexible and contemporary.

But warning: PTO Banks and FTO aren’t for every workplace. While such plans have advantages for employers and employees alike, they also come with their share of challenges, both legal and practical. This program will give you the facts you need to decide if it’s time to consider updating your time-off policy.

LEARNING OBJECTIVES

You’ll learn how to:

• Balance the gain for the organization (fewer surprise absences, diminished administrative workload from micromanaging time off) with the gain for employees (added flexibility and privacy)
  
• Evaluate the total potential impact to your organization on every level and in every department.
  
• Connect PTO banks and FTO with your recruitment and retention efforts by adding flexibility to your organization’s “employment brand”
  
• Debunk the most common myths associated with FTO and PTO banks and understand the financial and personal realities behind them
  
• Evaluate up-and-coming trends in time off, like sharing PTO
  
• Perform a financial impact review of a change to a PTO or FTO plan
  
• Assess compliance issues regarding implementation
  
• Manage employee relations issues associated with the change
  
• Manage the downside of the equation (for example, employees who use all of their PTO for vacation and then get sick, or those who abuse FTO)
  
• Determine when an employee’s PTO or FTO crosses over into FMLA
  
• Determine if you’re legally required to pay out all unused PTO days at termination - and options for allowing employees to cash in, cash out, or roll over their PTO

ABOUT THE SPEAKER

Jennifer Berman is an experienced HR Consultant and Strategist, having provided organizations nationwide with guidance on comprehensive HR and Benefits issues since 1995. In 2009, Jennifer founded her firm, OAU Consulting, to provide organizations in a wide variety of industries with expertise and support to manage their HR needs in a new economy.

Jennifer received her law degree from DePaul University College of Law and her undergraduate degree from Newcomb College of Tulane University. Jennifer was admitted to both the Illinois and Federal bars in 1994 and received SPHR certification in 2001. Jennifer has been a featured speaker, commentator and panelist for national, regional and local associations, organizations, and publications including MSNBC, Wall Street Journal, New York Times, WGN and the Chicago Tribune.