Establishing and implementing a "paid time off" (PTO) policy can make sense for many organizations.
PTO policies can resolve or avoid some HR compliance issues by combining sick leave and other types of paid leave into one pool. This can make it easier to track data on absences and means that HR and management personnel need not spend time considering which policy applies to a given situation. A PTO policy can help cut down on unscheduled one-day "sick leave" absences, an expert told BLR. Companies often suspect that employees are taking a sick day when they are not actually ill, and this is true in a significant number of instances.
Employees commonly feel that unused sick days are effectively a lost or wasted benefit. The loss of the contingent benefit can make them feel cheated, since failing to use their sick days typically has no benefits. As a result, they may use them to conduct personal errands so that their free time will be available for recreation or other purposes.
Exceptions might occur if sick days accrue over time and do not expire, or if there is some other incentive for workers to save them up. This also means that they will be able to use those day later, however, and does not guarantee that they will not be abused rather than used for an actual illness. PTO policies combining sick and vacation days might result in more total absences, but can also encourage employees to schedule more of their time off in advance, so it may be beneficial.
