Paid Time Off and PTO Banks: A WorldatWork Hot Topic Survey
PTO Banks Offer Flexibility for Time Off
Although Paid Time Off (PTO) banks are not yet wide spread in the business world, according to a July 2002 WorldatWork survey, they offer employees more flexibility in taking time off.
According to the survey, 28 percent of the 822 surveyed companies reported having a PTO bank system for their employees. Among the companies without PTO banks, 23 percent indicated they are considering implementing one.
Flexibility in these programs may be the reason, as respondents indicate that under PTO bank systems, employees are eligible to take time off sooner, they are more apt to be able to purchase/borrow more time off and they are more free to donate time off to other employees facing extended health or personal leave.
In addition, employees under a PTO bank system are more likely to have their unused time off rolled over at the end of the year. According to respondents, 60 percent of companies roll over or partially roll over unused PTO bank time to the next year. Under traditional plans, 53 percent of companies roll over or partially roll over vacation time. Only 35 percent do the same with sick time and 11 percent with personal or other time.
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