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| Contact: Edie Clark, NAPEO (703) 739-8162 edie@napeo.org |
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| Contact: Edie Clark, NAPEO (703) 739-8162 edie@napeo.org |
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Workers Enjoy New Freedom with PTO Banks Alexandria, Va. (June 30, 2004) — As vacation season swings into high gear this 4th of July, many workers are enjoying a new type of freedom – the PTO (paid-time-off) bank. They can take more vacation days if they remained healthy and working during the first half of the year. Their employers no longer track three types of leave, and both are happier campers. The PTO bank is a relatively new trend in America, but its popularity is growing among smaller businesses as they work with professional employer organizations (PEOs). A PTO bank program gives each employee a certain number of days to use as they choose, and at their employer’s discretion they may carry unused leave over to the next year. They’re not locked into prescribed amounts of vacation, sick leave and personal leave. In the old system, workers would sometimes call in “sick” when they just needed a day for personal matters. They’d have the same amount of vacation time even if they have not used sick leave. The PTO bank adds up to more productive, responsible and satisfied employees who enjoy the freedom of taking personal time for confidential reasons. “PTO banks are creating a higher level of satisfaction among workers,” said Tom Cioffe, president of Compensation Solutions, a PEO based in New Jersey. “However, small business owners find the PTO record keeping arduous at best. That’s where the PEO comes in. Compensation Solutions makes their job easier because we maintain the PTO bank record for each worker and report the information to the owner and the worker.” New software also makes it easier for the business owner to report PTO usage to the PEO. “As a result, small employers are moving toward both PTO and flex time programs,” Cioffe said. He noted that a recent study of small businesses (50 or fewer workers) in New Jersey found they are more likely to offer PTO than larger businesses (more than 50 employees). Employees enjoy the ability to review their own balances on-line at the PEO’s site. “Employees can view their balances on-line, which answers virtually any of their questions about their PTO. In addition, balances are printed on each employee’s pay stub and HR professionals are available to answer any questions that may come up,” said Brian Fayak, president & CEO of Nextep, Inc., an Oklahoma-based PEO. “In what is about to become a tight labor market, it is important to offer employees a comprehensive benefits package that includes PTO,” Fayak said. “However, it’s all for naught if the benefits are not communicated and administered properly, and that is exactly what a PEO provides.” The PTO bank program allows confidentiality while encouraging employee candor and planning, according to Pete Guernsey, chief business officer for the California Space Authority, a nonprofit corporation representing the interests of California’s diverse space enterprise community. His organization works with Your People Professionals, a PEO based in California. “Employees do not have to misrepresent the facts and say they are sick if they just need a day off to take care of the family or relax. I don’t need to know why they are out,” he said. Employees with the California Space Authority also value the ability to carry over unused leave to the next year, he said. With a PEO to track PTO use, the business owner spends less time on administrative tasks and more time on productive activities. “Our PEO The
Hancock Group keeps track of PTO – and that’s a very time saving service,” said Angie Smith, administrator for Regency Pointe, an upscale retirement center in Alabama that has 75 employees. About 18 percent of the survey respondents offered PTO banks in 2000, compared with 6 percent in 1997. The PEO’s administrative support has contributed to their popularity, and today more American workers can enjoy a vacation without worrying about the type of time off that they are taking. For more information on the PEO industry, visit the NAPEO Web site: www.napeo.org NAPEO, the National Association of Professional Employer Organizations, is the recognized “Voice of the PEO Industry.®” NAPEO has 340 members found in all 50 states, representing more than 70 percent of the industry's revenues. Professional employer organizations enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients focus on their core competencies to maintain and grow their bottom line. NAPEO |