Human Resources Management

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Assignment 2: Case study—Paid Time Off (PTO) Policies

PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the Argosy University online library and your textbooks to read about PTO policies. Now, let us go back to Company A and Company B from Module 1.

While reviewing the information from the two merged companies, the HR Director has found out that each company has two different PTO policies.

Company A has a PTO system in which employees are given 30 days of paid time off each year, which accumulates at the rate of 2.5 days a month. Under this policy, vacation and sick leave are all rolled into one paid leave and any absence whether scheduled, such as vacation, or unscheduled, such as sick leave, are taken from the accumulated leave the employee has earned.

Company B has a more traditional leave system in which employees are given 12 days of vacation, 10 days of sick leave and 10 holidays. The company is closed on those holidays. Vacation is accumulated at a day per month. Sick leave has an unlimited accumulation, but unlike vacation would not be paid out upon termination of employment.

Since the employees of the merged company will be working side by side, the HR Director has asked you to review the situation and make recommendations for a solution.

Instructions:

As an HR Director prepare a report addressing the following issues:

  • Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
  • Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
  • Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for new employees.
  • Make a recommendation for one common PTO system. Explain your system and why you think this system is the best system for the company.

Include two to three scholarly references in your response.

Write a five-to-seven-page memo to the company’s Chief Executive Officer (CEO). Apply APA standards to citation of sources.

Use the following file naming convention: LastnameFirstInitial_M2_A2.doc. By the due date assigned, deliver your assignment to the Submissions Area.

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Explanation & Answer

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Running Head: PAID TIME OFF STRATEGIES

Paid Time-Off Policy Review
Student’s Name:
Course Name:
Date:

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PAID TIME OFF STRATEGIES

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Paid Time-Off (PTO) Policies
PTO is a policy that enables employees to take a paid time off from work since it combines
personal time, vacations and sick time into a couple of days. It is responsible for creating days that
are used by an employee at his or her discretion. The PTO policy enables a certain amount of time
off to be paid to a worker when he or she needs to take time off from work, and the system can be
used by an employee at his or her discretion.
Such time-offs may be; to wait for a furnace maintenance specialist, need for a specific
time for doctor's appointment, time for picking children from school, or attend kid's parent
meetings ( Hill, H. D. 2013). Such time usage is not the time for the business of the employer,
hence the PTO policies gives the employee time-off by still get paid a certain amount of money.
However, the time-off varies in companies, and it is limited so that the employees cannot spend
more time-off rather than being at work.
The PTO policy has enabled both employers and employees to stop always asking for
permission from their manager to miss work. So that the workload of the company and customer
service to be protected, it is always recommended that the employees to a request for PTO earlier
prior notice, about two days unless there is an emergency that the employee is genuinely sick. For
the employers, it is always suitable to fully inform the employees of the company related guidelines
and policies before the adoption. This is because employees tend to react unfavorably when there
is an adoption of a new system and later on rules and guidelines are dribble after the policy is
already in use.

PAID TIME OFF STRATEGIES

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Advantages and Disadvantages of PTO
There are some advantages and disadvantages of PTO policy over the traditional paid time
off days. Some benefits include; PTO policy treats employees as adults. It also gives the employer
some over unscheduled absences control, that is, the employee can schedule time off in advance,
and this helps with coverage of work (Dreyfuss, R. 2005). PTO provides flexibility value, where
it gives employees an option of using the paid time-off when they need it most.
PTO allows employees ...


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