4 Ways PTO Plans Can Boost Your Bottom Line
The kids are out of school and the temperature is hotter than a firecracker…it must be summertime! It’s that time of year when people typically take vacations to spend quality time with their families or to simply get away. It can also tend to be a time of year when businesses see more people taking vacation around the same time. While this may send some employers into panic mode, enjoying downtime out of the office is essential to an employee’s overall well-being. And this can have a very positive impact on your company. So let’s discuss four ways PTO plans can boost your bottom line.
1. Increased Employee Morale
Let’s face it - work can be stressful. Even if you love your job, you can still get burned out after a while, especially if you have a crazy post-work life. Encouraging employees to decompress and unwind can actually improve their overall mood and opinion of the company they’re working for.
Six out of ten employees claim their boss doesn’t support time off, which deters workers from wanting to take a much-needed break to refresh and recharge. Having said that, it’s important to make sure that you’re communicating time-off policies in the right way; many employees are unaware of their company’s PTO policy, or they receive mixed signals or hear nothing in regards time off policies. Thankfully, communication issues are fixable. A great self-service technology for time-off requests is a simple, effective way to open up lines of communication between employers and workers, and can help to manage time-off requests. Don’t let poor communication destroy your employees’ morale!
2. Improved Productivity
Your employees are human, and they need a break every now and again; however, most company cultures encourage a “work martyr” philosophy. Work martyrs are defined by Project Time-Off as employees who find it difficult or don’t take their PTO because they believe no one else in the office can do their job. Up to 39 percent of employees want to be seen by their boss as work martyrs. It turns out these employees are only martyring their careers, as they are actually promoted less often than their vacation-taking co-workers.
Most HR managers agree - employees who take time off of work are more likely to be productive, and they have a higher overall performance than their co-workers who choose martyrdom.
3. Reduced Turnover
Whenever employees feel they can’t take time off, they won’t use their PTO, affecting their overall job satisfaction and performance. The fact remains that happy employees tend to stay at their current place of employment, and happier workers means less company turnover. New hire costs can exceed half of a current employee’s salary, and turnover expenses alone can be at minimum 90 percent of an annual salary. That’s a lot of money to replace an unhappy worker, but encouraging a positive company culture that promotes taking paid leave can help keep your employees happy and turnover costs down to a minimum.
4. Improved Wellness
Wellness is now taking precedence in American workplace culture, and for good reason. Highly engaged employees help create a more productive work environment and can create an overall happier culture. There is a dark side to overly engaged employees, which leads to the deterioration of wellness among employees. If workers are too obsessed with their jobs, their outside lives can be negatively affected, including family relationships, friendships, and professional relationships.
There’s a misconception in corporate America that the more you work, the more you achieve; but researchers are finding fault with this mindset. Conversely, 98 percent of Americans say their vacation time is important to them, yet only about 25 percent of those workers actually use their full allotted PTO. In 2016 alone, American workers have given up $66.4 billion in forfeited benefits and cost the national economy about $236 billion due to lost spending. The takeaway from this article: go ahead and plan that vacation. You deserve it (and so do your employees)!
How APS Can Help
APS provides aunified suite of solutions to easily manage your employees from hire to retire. Our workforce management platform includes recruiting, applicant tracking, onboarding, employee self service, performance reviews, and more to efficiently manage your employees. With intelligent reports and dashboards, it’s easy to create an effective hiring process, proactively engage employees, and create a great company culture. Schedule a demo today!
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