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What is the fairest way to transition from lump vacation to accrued PTO.

We would like to change our policy from staff earning their vacation time in one lump sum at the beginning of the year, to having them accrue it throughout the year. We would allow them to borrow against their totals for the year in the beginning of the year, but they are really against this policy. Is there an equitable way to make this transition?

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

There is no easy way to do it (much less equitable or fair). You are starting from a disadvantage (policy of giving employees the credit beginning of the year). As you know, once you give it to the employees, it is VERY hard (if not impossible) to take it back. It is no surprise that they are against it.

Communication is key and the quality of people and your culture will dictate how you proceed. (BTW, I agree with where you are going and it is the right decision). Companies with the right people and culture will understand the decision and will support it, albeit some begrudgingly.

Here is an option/idea..... Increase the "earned" days per month for the first year. If employees should earn 1.5 days per month, make it 2 or 2.5 per month. This way, they will get to their totals/limits earlier in the year. Again, this is only for the first year. The succeeding years, employees will earn the normal credits per month. Make sure that you communicate and explain the details of the implementation (first year) and what happens on the succeeding years.

I reiterate, there will be "PAIN". The best the company can do is to ease that pain. As they say, the best way take a band aid off is to rip it off.

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Why are you changing the policy?
Was it abused by people no longer there? Do you expect more abuse?
What are you actually trying to achieve?
How do your state labor laws and case law influence what/how you make the change? e.g. can you introduce the new policy for new hires and transition current staff to the new policy over 2 years, with (as Emerson wisely recommends) an incentive such as an extra few days PTO for now?
Will you allow some who have already made vacation plans to go under water on their PTO balance for now, so they are not penalized at transition?

Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

If I remember correctly, one company for which I worked did this transition. They gave the employees 12 months notice, so that if an employee wanted to use days at the beginning of the next year they had to save some from the current year.

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