Paid Leave Policies
 
 

Paid Leave

There are many different forms of paid leave that employers can choose to offer for employees.

 

PAID TIME OFF (PTO)

What it is

The combination of one collective "paid time off" versus tracking sick, vacation, and personal time off for employees.

bENEFITS OF IMPLEMENTING THIS

Employees can determine how best to use their paid time off, and are more likely to arrange absences in advance and less likely to call in sick when they need time off for personal business.

Tips and Tools

  • It reduces record keeping for employers

  • It may reduce unscheduled absences


VACATION LEAVE

What it is

Paid time off offered to employees for vacation.

bENEFITS OF IMPLEMENTING THIS

This time off allows employees to recharge mentally and physically and enables families to rest and spend time together.

Tips and Tools

  • Employees with paid vacation leave have lower rates of stress and depression

  • The Society for Human Resource Management has found that employers who encourage employees to take vacation time see a reduction in turnover, workers compensation claims, and health care costs, as well as an increase in productivity.

  • Some employers require employees to take a minimum amount of vacation time each year.


PERSONAL LEAVE

What it is

Paid time off which is designated for "general leave" purposes, such as functions for children and appointments.

bENEFITS OF IMPLEMENTING THIS

Supporting parents through paid personal leave is closely connected to children's academic achievement and behavioral health.

Tips and Tools

This family-friendly benefit directly impacts both the employee and the child.


PAID FAMILY LEAVE

What it is

Paid time off for new parents.

bENEFITS OF IMPLEMENTING THIS

Partial or fully paid parental leave makes families more financially stable, and gives birth mothers the ability to take sufficient time to recover from childbirth

Tips and Tools

  • It allows time to bond with and care for a newborn or newly adopted child

  • It helps brain development for the child

  • It helps lay a solid foundation for healthy relationships and the ability to learn

  • Parents become less likely to require public assistance a family's income is less likely to drop below the poverty level

Research on the benefits of paid family leave show:

  • Improved employee retention - Women with paid family leave are 93% more likely to be working one year after the birth of a child than those who take no leave.

  • Better talent attraction - In a Deloitte survey, 77% of workers said that paid family leave policies sway their choice of employers.

  • Reinforced company values - Company leaders frequently cite improved paid family leave policies as reinforcing the organization's core values.

  • Improved employee engagement - In an Ernst & Young survey, more than 80% of companies with paid family leave reported a positive impact on morale. More than 70% reported a boost in productivity.

  • Enhanced brand equity - Improving paid family leave policies attracts media attention. This can be particularly true for early movers in an industry or for companies offering new or more expansive policies.


SICK LEAVE

What it is

Paid time off for employees that specifically covers them in times of sickness.

bENEFITS OF IMPLEMENTING THIS

In a family in which all adults are working, parents without paid sick leave face difficult decisions when their children are ill. If a parent misses work, he or she endangers the family's financial stability.

Tips and Tools

  • It gives employees time to recover from their own illness or care for sick children.

  • They can use the time to seek preventative care.

  • It reduces the risk of spreading disease and serious illness between employees

  • It increases employee morale and overall job satisfaction.

  • It reduces "presenteeism," a condition in which employees are present but unproductive at work due to illness.

  • Healthy workers are safer and less likely to be injured on the job

 

•  •  •  •  •  •  •  •  •  •  •  •  •

< Back to the Toolkit