Word of the Day: PTO (paid time off, personal time off)

Word of the Day Daily updates on the latest technology terms | April 11, 2019 PTO (paid time off, personal time off) Paid time off (PTO) is a human resource management (HRM) policy that provides employees with a pool of bankable hours that can be used for any purpose. Also known as personal time off, the acronym PTO is generally used to describe any period of time that an employee is paid while taking leave from work. In a large corporation, a PTO policy typically bundles employees' personal days off, sick days and vacation time in a single block of hours rather than specifying separate numbers of days allowable for each reason. PTO plans are used primarily in the United States, where there are no laws for minimum vacation time. In addition to documenting the number of paid hours for an individual employee, a PTO policy might include what yearly rollover (if any) is allowed and whether or not time can be taken off in lieu of overtime. The policy should also specify whether or not an employee can cash out unused PTO when leaving the company. In the U.S., PTO policies are becoming more common, but employers must be aware of state laws to ensure that their PTO policy is enforceable. Some benefits of PTO: Provide more vacation time for employees who don't use banked time for other things. Employees can use the hours as needed when unforeseen situations arise, as long as the time is available. PTO policy enforcement can serve as a recruitment incentive to attract employees. More frequent, shorter vacations as desired can help maintain work-life balance. Some disadvantages of PTO: When an employee quits, management still has to honor paid time off commitments. Multiple employees may want to take the same days off at the end of a year to avoid losing paid time off hours. Employees may run out of PTO and be required to work while sick or lose pay. The larger pooled number of hours can look like more time than it actually is to those employees who fail to consider that it covers all purposes. Quote of the Day "The labor landscape continues to get more challenging for employers with many regulatory compliance requirements and challenges related to health insurance, employee benefits, tracking of paid time off and other workforce requirements." - Ronald Schmelzer Trending Terms human resource management work-life balance time and attendance software employee engagement HR technology workforce management Learning Center HR chatbots move beyond the simple to more complex engagements Already established as a popular front-end interface for recruitment systems, HR chatbots are starting to gain a stronger foothold in handling more complex engagements with employees, but only with the right combination of good data structure and the integration of disparate data sources. AI for recruiting helps companies land top job candidates Companies using AI for recruiting are finding that the available tools can help them identify strong candidates, but only when used with caution. Learn what you need to watch out for. Unlimited vacation time cropping up at startups, GE, but policy rare Tech-centric companies like GrubHub are offering unlimited vacation time to keep the startup vibe going, but the perk is still rare. What is HCM software, and what are the HR software benefits? HR software benefits include more than just help with payroll. HR software is essential and enables the enterprise to manage its most valuable asset: people. Four secrets of a successful flexible work arrangement policy As the entire business ecosystem morphs, more employees expect flextime and remote work options. Here's what you need to know to create the right flexible work arrangement policy. Quiz Yourself The manager clapped me on the back and said, "Let's get that contract signed and we can _____ out the details later." a. flesh b. flush Answer Stay in Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com Visit the Word of the Day Archives and catch up on what you've missed! FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2018 TechTarget. All rights reserved.