For the sake of simplicity and accounting purposes, some companies are choosing to do away with the “sick,” “personal” and “vacation” headings under which they categorize paid time off (PTO).
Proponents say it eases the burden of tracking hours and gives employees greater flexibility in how they use their days away from the office.
Some argue that employees’ perception of PTO and the way they use the allotted time may change for the worse if a company does not distinguish between sick day and a vacation day. Some may work even when they are sick to avoid cutting into “vacation time,” while others may end up increasing the amount of PTO they use. Increased PTO usage could be an issue for some companies because they don’t truly understand just how much money sick leave costs them.
Whatever categories you choose to apply to PTO, if you notice a certain trend – such as employees not using all their sick days but consistently maxing out on on vacation time – you may want to consider reshuffling distribution or doing away with the designations altogether.
Do you think it matters what a company calls paid time off?