Benefits Offered by Giving Your Employees Paid Time Off

By Guest Author | employees HR | February 8, 2021

Paid time off is an important topic in the business world. For employees, having paid time off is an asset that is invaluable for achieving that all-important work-life balance. However, creating a benefits package that separates vacation and sick days can be a bit stressful for employers. It can also be concerning that you may lose one of your top employees because you don’t provide enough paid time off for your workers.


There’s also an issue with companies providing more paid sick days versus paid vacation days. This causes employees to call in much more than usual. This is where the argument for PTO – paid time off – could be beneficial. This would be an alternative to providing a certain number of days for illness or vacation. Besides adhering to all laws, including the California break law, keep reading to find out the specific benefits offered by providing your employees with PTO.

Reduce Unscheduled Absences among Employees

If you provide your workers sick days as a part of the benefits package they offer, there’s no want to know when they will be used. As an employer, this may leave you without an important team member when a big project is due.

When you have PTO, your employees can schedule the days off if desired. If an employee does not get sick during the course of the year, employers can plan for the absence of that individual more effectively. With scheduled coverage, you can better manage your responsibilities.

Gain a Competitive Advantage

If your business wants to attract a skilled and quality workforce, you must be willing to provide or offer competitive benefits. With a PTO benefits package, you have something that is more flexible than more traditional time-off plans, which are usually made up of sick or vacation days. This may help to influence your applicant’s decision to work for your company, rather than the competition.

Reduced Administrative Costs

If you provide vacation and sick days separately, then your human resources department must spend additional time trying to keep track of each worker’s time. The days have to be validated, which can use up some of your most valuable resources. When you offer paid time off benefits, all you have to do is record if an employee was in the office on that day. This also means no one has to worry about the absence.

Increased Autonomy

Offering your employees paid time off lets them figure out when it is time to take a break from their job. They do not have to submit or report a reason to their superiors or managers. The return of this is that employees can manage their own time, which results in improved overall performance. If a worker decides to take a “mental health day” to remain at home and recharge after a stressful week, they will return to the office ready to work and much more energized. There is no need for anyone to fake sick or work slower to explain why they were not there.

Increased Morale

If your workers have to wait a whole year to get a single week of vacation time, they are more likely to feel burned out by the time the year has passed. As a result, you may begin to see a significant drop in performance and productivity after a few months of ongoing work. Also, employees may actually surprise their employer with multiple, unexpected absences as the year passes.

Increased Employee Retention

If you take steps to ensure that your employees feel valued, they will be more willing to stick with the company. You will be able to keep your top employees by offering them a benefits plan that ensures they feel this appreciation. With a paid time off benefit plan, you are helping your workers to feel empowered. Employees who are empowered are also typically much more energized and inspired to give back to the company with their ongoing loyalty and hard work.

Improved Work-Life Balance

When your employees can achieve a quality work-life balance, your company will be a good thing. This balance ensures that individuals can focus on individual activities, relationships, personal growth, and self-care while at home and focus on job-related tasks at work. With PTO, it is also possible to help reduce employee stress while enhancing their fulfillment in the job they have. Even though employers do not have the requirement of creating a sense of work-life balance for staff members, when a PTO benefits policy is created, it can encourage workers to seek fulfilling things and new accomplishments both in and out of the workplace.

Reduced Costs

If you have employees who are constantly calling out sick, then you are dealing with a high volume of unscheduled absences, which can cause your business to lose revenue. In some situations, you may have to hire a part-time or temporary employee to handle their job tasks because you could not plan for their absence properly. Neglected responsibilities and missed deadlines, which often occur when someone calls in sick to work, can hurt your sales. If you are scrambling to make up for one employee’s lost time, you are unable to work as efficiently as if you could prepare to ensure the missed responsibilities were covered.

Reduced Financial Liability

When you offer paid time off, it is considered a monetary benefit that will add to your workers’ compensation package. Rolling over your vacation time from one year to another is considered a financial liability for most employees. When you offer a PTO policy, your employees cannot roll over as many days from one year to the next. This results in much less vacation time that employers must cover as they move in in the hierarchy.

Improve Company Diversity

For most companies, your employees have a huge array of different cultural backgrounds. With PTO, you can accept and celebrate this diversity. This is because it is a plan that lets employees take time off for cultural celebrations or holidays that may not be recognized by the entire company. This is going to help you attract a much more diverse workforce.

Reward Service and Loyalty

Usually, a PTO benefit plan will provide additional days off to those with more seniority. Anyone who has worked more time with the company will receive more days off. This helps to encourage your employees to stay with your company, which will allow them to take advantage of this perk of more time off.

Providing Your Employees the Perks and Benefits They Really Want

When it comes to paid time off benefits, there are many things to consider. Take some time to review the benefits mentioned here, which will help you see why this may be something you should offer your workers. You will have happier and more productive employees who are more willing to stick with your company long-term in the long run. Implementing a PTO plan is also quite easy and something that businesses of all sizes and in all industries can benefit from. Being informed and understanding more about paid time off policies and benefits is the best way to make an educated decision regarding if this is something you want to offer your employees now or in the future.