How PTO Policies Can Attract Top Talent

By Joe DiMaggio, Jr.

Is your organizationstruggling not only to attract and retain talent but also to keep existing employees engaged and satisfied? If so, you’re not alone. Many professional services firms are currently facing similar issues. In fact, the accounting industry is currently in a time of crisis when it comes to its labor shortage. There are 340,000 fewer accountants than five years ago, according to an analysis of data from the Bureau of Labor Statistics.

Now is the time for firms to do whatever it takes to attract skilled workers. One tool that employers don’t utilize enough to combat these challenges is a well-formulated paid time off (PTO) policy.

Making PTO Policies a Priority

Without sufficient downtime, the risk of burnout is real. A Deloitte survey found that while 87% of professionals said they have passion for their jobs, nearly two-thirds also said they frequently feel stressed or frustrated on the job — 18% said they feel that way every day.

A well-crafted PTO plan is something that accounting, tax and financial professionals look for when job hunting. According to a survey by the Pennsylvania Institute of CPAs, “better time-off packages” were one of the top reasons CPAs left their jobs for another firm, with 32% of respondents saying that they would’ve been more likely to stay at their previous company if their PTO plan was better.  

Formulating a Valued PTO Policy

While there is no “one size fits all,” the most effective PTO plans share some similarities.

PTO policies typically include vacation and/or personal time and sick time. How those break down depends on the company, its needs, and the needs of its employees. Some combine all types of PTO in one giant “bucket” for employees to use as they like; others break it down into a specific number of days for sick time, planned vacation time, and personal days. Other variables companies must decide on are whether to have PTO accrue over a year versus offering a set number of days at the start of the year and whether to allow employees to carry over unused time off to the following year.

Increasingly, companies are starting to include time for “mental health” days in their PTO policies. Some are also including non-traditional leaves of absence, such as for bereavement or family-centric events, such as a miscarriage, as part of their PTO plan. Additionally, different cities and states may have specific rules regarding employee PTO, impacting a plan’s design.

It’s also essential that upper management visibly buys into and supports the PTO policy. Management should make it clear that they understand the need for employees to get time off and expect PTO to be used. If employees think taking time off is frowned upon, the plan loses its effectiveness in retaining talent.

Is Unlimited PTO a Consideration?

A small but growing number of companies offer employees unlimited PTO — primarily large companies with 5,000 or more employees. Under these plans, employees can take time off whenever — and for as long as — they want.

Unlimited plans have pros and cons. Because time doesn’t accrue over the year, the company doesn’t have to pay for unused PTO when an employee leaves. It also tends to lessen the end-of-year rush when everyone takes off to ensure they don’t lose accrued time.

The obvious downside is the possibility of abuse. Companies can largely avoid this by communicating clearly with employees: Take time off when needed, but make sure the work is still getting done.

Some companies have implemented a pilot program of unlimited PTO by first testing it with management-level workers. Doing so can give the company time to identify problems and work out the kinks before rolling it out to all employees.

Communicating with Employees is Essential

The best PTO plan is useless if employees don’t understand what they’re entitled to. The plan must be understandable and clearly communicated to ensure it serves the company’s and its employees’ interests.

Ideally, PTO information will be readily accessible to employees in multiple formats. For example, sharing news about the plan through written or emailed memos and a page on the company intranet makes it more likely everyone will see the information, regardless of which platforms they prefer.

When making a policy change, whenever possible, include information from employee surveys or external data to support the change’s necessity. This can prevent employee questions or concerns and show that the company is thoughtful and deliberate in managing its PTO policy.

The idea that giving employees time away from work can be a productivity-raising tool may seem counterintuitive at first glance. Yet, we’ve probably all experienced the benefits of having that time off to recover from an illness or mentally escape it all. In this challenging labor market, a well-crafted PTO plan is a vital employee benefit and can be a powerful tool for attracting and retaining top talent in the accounting, tax and financial profession.

=======

About Joe DiMaggio, Jr.

Joe DiMaggio, Jr., joined Kelly Benefits Strategies (KBS) in 1998 and has over 20 years of consulting and business leadership experience on his resume. Among his many responsibilities, he provides oversight and expert guidance for more than 30 clients and also manages a team of 30 benefit experts. Since 2006, DiMaggio has been a Senior Vice President and Senior Consultant for KBS.