There are a variety of approaches to providing paid time off (PTO). Personally, I’ve experienced the following approaches the most:
- Accrue as you go, rollover
- Downside: This is tough when you start somewhere and need time right away. You often have to borrow or you are just out of luck.
- Downside: Doesn’t always encourage people to take vacation, which then remains on the books for the organization. Plus, I’ve seen people want to take consecutive 3 months off as they’ve accrued that over the years.
- Upside: The benefit is truly yours, you get paid for your vacation hours as part of your package.
- Accrue as you go, capped rollover
- Downside: If you don’t take the time, you loose the benefit (up to the point of the capped)
- Upside: Minimizes the downsides of the first one
- All immediately available, no rollover
- Downside: if you don’t take the time, you loose the benefit
- Downside: if you leave the company, you are not paid for what was immediately available.
- Downside: Some companies also track accrued, so if you take all available and leave before you accrue, you owe the company money.
- Upside: You can take time immediately if an emergency arises
- No tracking – take what you need when you need
- Downside: People might not take time appropriately
- Upside: Ownership is with the individual to take time appropriately
- Upside: No balance on company book
- Upside: Reduce cost of tracking
- Upside: People can take what they need and when they need it
My preference is for 4 hands down. It’s what I have today and I will struggle if and when I ever have to go back to another approach.
Which approach do you prefer?