¶ … Policies and Parental Leave Across the Globe
TIME OFF POLICIES
Paid time off (PTO) requires less effort and time from management, and also results in lower costs to maintain. This is primarily because the employer does not need to track the personal, sick, and vacation days for each individual employee. Without having to keep to different numbers of permitted paid days off, employees may be more likely to take paid time off when they are sick. This can mean that more employees are well for longer periods or in absolute numbers during the year, and that illnesses like the flu or other highly contagious disease don't infect large swaths of employees, a situation that can impact the bottom line. To discourage preventable absenteeism, companies can cash out the unused paid time off at the end of the year, or allow employees to contribute the amounts due to their retirement plans (Lindemann and Miller, 2012).
Employers can encourage employers to utilize their paid time off by instituting a use or lose it policy that identifies a date certain when the paid time off expires. This encourages employees to take what amounts to vacation time, which leaves them more rested and more productive. Alternately,...
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