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Paying PTO Forward

Paying PTO Forward
by Mark McGraw

A new survey finds more than one-quarter of companies saying they allow employees to donate paid time off to their colleagues. Experts see plenty of positives in leave donation programs, but urge HR leaders to consider a variety of factors in implementing such policies.

Good companies want their employees to take advantage of the vacation days they are provided. And it seems some of these same organizations would rather see workers donate those days to colleagues in need than let them go to waste.

A new report from the Brookfield, Wis.-based International Foundation of Employee Benefit Plans, titled Paid Leave in the Workplace, finds 30 percent of employers that offer paid vacation allow workers to donate paid vacation days to colleagues who are dealing with a catastrophic illness or personal emergency, for example.

The survey of 497 employers sees this generosity extending beyond vacation days as well, with 28 percent of companies with paid-time-off plans saying they permit employees to donate paid time off. Twenty-two percent of organizations that provide paid sick leave allow workers to donate sick leave.

Such findings signal a "slight uptick in companies allowing leave donation to workers," says Julie Stich, associate vice president of content at IFEBP.

There are plenty of positives in instituting a leave donation program, she says.

"It reduces turnover by allowing an employee in need to take time off with pay so they won't need to quit or lose their job. It can reduce unscheduled absences, it builds camaraderie and morale, [and] it serves as a recruitment tool -- making the company an employer of choice -- and it reduces accrued leave liabilities on the company's financials."

Such programs are often set up to support employees who are dealing with health events -- theirs or a family member's -- and have exhausted all available paid time off, says Sander VanderWerf, a vice president in Aon's U.S. absence management practice.

In other cases, a company might offer donation programs for employees affected by a natural disaster, says VanderWerf.

"Organizations that have or are trying to develop a sense of community among employees are more likely to offer donation programs. Disaster-related leave donations can be especially helpful in fostering a sense of community when employees are looking for ways to help colleagues in affected areas."

While the pros to implementing a paid-time-off donation policy are indeed many, there are still many factors to consider before doing so.

Read full article on HREOnline.