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Evaluating The Pros And Cons Of Implementing The PTO System

539 Words3 Pages

As previously mentioned, it is impossible to completely guarantee a smooth transition from a traditional system of categorized paid leave to a paid time off banking program, and there are legitimate disadvantages present. When implementing the PTO program, the transition could produce considerable financial implications for the organization. Therefore, it is crucial for Superior Software Services to carefully evaluate and develop a process for handling accrued vacation and sick leave of current employees. Additionally, employees may view sick days as penalty days against their potential vacation time, despite the fact that PTO leave is intended to address both sick leave and vacation time. Workers might choose to attend work when they are …show more content…

Generally, PTO is viewed as vacation time for legal purposes, and based on this accrued vacation is required to be treated as earned wages upon employment termination. Under the previous system, sick days would not be required to be paid out, and as such Superior would potentially experience an increased financial liability when employment is terminated voluntarily or involuntarily. Additionally, employees might consume their allotted PTO time early in the year, not providing any safety net for potential illnesses or emergencies throughout the year. Companies work to address this by establishing a rate at which time is accrued throughout the year, however generally employees have some ability to use PTO in advance of accrual which must then apply fairly to all. Flexible work schedules and positive work environment all improve employee morale, minimize turnover, and assist in maintaining a steady work force, which undeniably benefits the organization (). Based on the challenges presently confronting the organization is would be appropriate for the company to continue with the transition. With an overwhelming level of data and research readily available it is possible to find yourself over analyzing even the simplest of decisions. Arriving at an optimal decision and moving forward from that point is the

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