What is PTO? Advantages & Disadvantages | Paid Time Off Policies 2019

What is PTO? Advantages & Disadvantages | Paid Time Off Policies 2019

Popular in the United States, the paid time off policies and procedures allow organizations, from small to big, show how important employees are to the association, and work to build a healthy and caring workplace environment. Let us explore, what is PTO? It’s meaning in work along with its advantages and disadvantages, in this article.

What is PTO?

The abbreviation of PTO is Paid Time Off. Sometimes referred to as Personal Time Off, the PTO policy is a practice of granting paid leaves, including vacation days and sick days, to employees working at a corporate association. Allotted and decided by the higher authorities of the organizations and usually mentioned in the Human Resource agreement/ HR policies, the PTO accrued over time provides bank of hours to employees where he/she is entitled to utilize and request a prescribed number of time-offs at their desire without losing pay for that day by analyzing the number hours earned and the total number of hours worked.

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Advantages and disadvantages of Paid Time Off

Implementing PTO brings certain advantages and disadvantages. While the pros are enormous, the cons are unavoidable. Let us explore the benefits and drawbacks of Paid Time Off policy.

Advantages of PTO

  • PTO helps in creating a healthy and nurturing workplace for employees
  • Improves workers’ honesty and commitment towards the organization
  • Implementing a proper PTO system makes the administration work easier and simpler
  • Eliminates misuse and fraudulent practice of leave requesting
  • Attracts young and talented candidates who prioritize work-life balance
  • Helps is finding a proper replacement to employee(s) who go on leave

Disadvantages of PTO

  • Inappropriate PTO tend to repel potential employees away from the organization
  • Misstructured PTO policy shows a negative impact on employees’ performance. For instance, Employees when decides to work despite illness due to lack of leaves harms himself as well as fellow colleagues
  • There is a risk of misuse of PTO policy by employees
  • Frequent employee absenteeism can affect the workflow in the organization
date  12 Jul 2019

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