In the US, employers have long rewarded overworking. The ideal employee was one who put in extra hours every day and seldom, if ever, used their PTO. Some might make it a point of pride. “I haven’t taken a day off in five years!” they’d proclaim. And everyone in earshot would be impressed – or pretend to be.
Now research has shown that employees need time off for their health and the health of the company. Working constantly is not a positive. Despite this data, some employees still refuse to use their PTO. Some companies have instigated a mandatory time off policy to ensure their employees take needed time away from the company. And while this policy has some benefits, mandatory time off also comes with some negatives. Before deciding on your company’s position, consider the pros and cons.
Experts agree that the following items are benefits of mandatory time off:
Health – Overwork can lead to stress, high blood pressure, heart conditions, stroke and mental health issues. Mandatory time off ensures that employees take much-needed breaks from work to destress – something that Type-A employees might not do voluntarily.
Company Productivity – Mandatory time off protects your employee levels because it protects employee health. If an employee has a heart attack or other serious health issue, they will be off work for weeks if not months, requiring you to hire a temporary employee to fill their shoes. When a key employee goes down, it impacts company productivity as well as the employee’s future.
Improved Morale – Employees value their vacation time but are sometimes afraid to take it for fear of management disapproval. In a recent survey, employees from companies that encouraged vacations were happier than those who worked at other companies.
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Improves Company Financial Picture – Carrying over employee vacation can affect your yearly numbers. Instead of showing a payout of $52,000 to an employee (making $1000 per week), your records can show $54,000 if an employee’s vacation is pushed into the next year. Also, if the company ever has to downsize, you could be on the hook for sizable payouts for unused PTO to laid-off employees while experiencing a team shortage.
Employee Recruitment – Job candidates may find mandated time off as a good reason tojoin your company. Many businesses discourage taking time off by promoting a work-to-you-drop mentality. More people are now searching for employment that allows a better work/life balance.
Employee Shortages – You want your employees to be healthy, but you also need your business to run well. Mandatory time off can leave you with critical employee shortages during times of high demand. You can try to stagger employee vacations, but that means developing another hard-to-enforce policy. With mandatory vacation time, you may sacrifice some productivity.
Staying Compliant with Government Regulations – You need your PTO policy to be in compliance with state and federal regulations or face hefty fines and a hit to your reputation. State laws differ on this matter, making the issue complicated if you have branches in multiple states. You may not be able to legally mandate time off in all of your locations.
Enforcement Difficulties – Some employees do not want to use their vacation days for actual vacations. Instead, they prefer to save them for illnesses, family crises and other common problems. Others do not feel comfortable leaving their job for a week or more, fearing that they will face an avalanche of work when they return. Some employees may fear you will decide they aren’t essential if they are gone too long. Also, enforcing the policy will put another burden on your HR department.
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Sick Day Complications – Many companies have a PTO program that accrues paid hours off that can be used for either vacation or sick days. Mandatory vacation time can cut into needed sick days for certain employees. For instance, parents often save sick day time to use when their children become ill. Some are taking care of ailing parents. Others try and retain their PTO because they have chronic health conditions such as diabetes. Mandating time off can leave these employees in the lurch when they have a crisis.
Morale – Being forced to take a vacation sounds like heaven to some employees, but other employees dislike the idea. In fact, they may resent being forced to take their time off on the company’s schedule. As adults, they prefer to arrange their vacations as they see fit. They may see mandated time off as you being paternalistic and intrusive when you are really trying to be helpful. Any PTO policy will have its critics.
Managing employee time off is time-consuming and complicated. America’s Back Office can help you with your PTO policy, including mandating vacation time. In fact, you can outsource all of your HR needs, including your HR administration, labor law compliance and employee performance management. Our services cover all of those challenging HR tasks that are essential to keeping your business running smoothly, including managing your time off policy.
If your HR services need improvement, reach out now. Don’t wait until you have a serious employee management problem. Schedule a free face-to-face consultation today and find out how our expert team can simplify your business administration. Call 1-877-423-7736 or email info@americasbackoffice.com for more information. Don’t let bad PTO policies harm your company and your employees.