Everyone looks forward to summer vacations except, perhaps, business owners and managers. Not only can it be a headache to juggle schedules and re-assign tasks while employees are away; it can also impact your business and customer service to have key employees gone. So how do you make it all work? Here are a few things to consider when creating and implementing a vacation policy so that it works for, not against, your business.
Different ways of doing vacation time:
While some companies still offer a specific number of days for vacation, sick and personal time, many employers are switching to more general and flexible, integrated "paid-time off" or PTO plans. This type of plan gives employees a set amount of time off to use as they wish, whatever the reason. A PTO plan can make employees feel empowered and trusted to make decisions, and also make it less likely they will pretend to be sick when they really just need to take a day off for personal reasons. Still other companies, including some heavy hitters like Netflix, offer unlimited (yes, unlimited) PTO for any reason, as long as employees get their work done.
Which system is best?
As with any other business decision, there is no single way to implement paid time off that will work for every company. Some employers find that PTO plans make employees happy and require less administration, among other benefits. Others think that PTO plans encourage employees to come to work sick so they can "save" their time off for other purposes. If you're considering a PTO plan, make sure you understand the legal requirements of your state you may or may not be allowed to institute a "use it or lose it" policy, and there could be other guidelines regarding accrual and rollover for unused time. Do your homework, weigh the pros and cons before choosing a policy that will work best for your business.
Creating a policy that works:
A good policy will be clear, transparent, and perceived as fair by all stakeholders. Some questions to consider: How much notice will you require before someone takes a vacation? What about shorter absences, like appointments? Are there times of year when your company cannot afford to be short-staffed? Are there other, slower seasons when you should encourage employees to take vacation or even shut down your business altogether? How will you handle it when two employees want the same time off, but you can only give it to one? Will you allow employees to cover for each other, and work things out among themselves? Answering these questions and anticipating potential conflicts will help you to craft a paid time off policy that works for you.
Why vacation is good for business:
It may seem counterintuitive to adopt a plan that actually encourages employees to use the time off that is available to them, but the research clearly shows that when employees take vacations, stay home when they're sick, and achieve a healthy work-life balance, it's not only good for morale, but it's good for productivity, too. So whatever you do, commit to finding a vacation policy that honors both your employees and your business, which will ultimately benefit your bottom line.
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