How Much PTO is Normally Offered by Companies?
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Companies offer employees paid time off (PTO) as a significant benefit, but how much do workers typically receive? In this story, we look at how companies allocate PTO among employees. We also discuss the differences in PTO offerings in several industries and why some experts stress negotiating and using it to your greatest advantage.
Following wages and health insurance, paid time off (PTO) is one of the essential benefits companies offer employees. Taking time off is vital for workers’ mental and physical health. It is also good for business. Studies show that employees who regularly take time away from work stay with the company longer, and good retention numbers improve morale.
But how much PTO should employees receive as part of their benefits package? And is there a limit or restriction on how those same workers should use their paid time off??
In this story, we will talk about the basics of PTO and how some companies choose to allocate it. We will also point toward resources to help understand company PTO policies and reduce stress and confusion about this incredibly vital benefit.
How Do We Define PTO?
Before we talk about competitive PTO, we must understand what paid time off is. PTO encompasses several types of time away from work, including:
No state or federal law requires employers to offer workers PTO, a sticking point among labor activists and workers. Still, most employers choose to do so for full-time staff to improve recruiting.
PTO Buckets
Companies structure their PTO in several ways. Some companies break it into different categories. These organizations offer specific PTO days for vacations, sick time and personal time off. Employees accrue this time based on the number of hours they work each pay period. The number of days off varies by company, but most allocate a schedule like this:
Set Number of PTO Days or Hours
Other companies do not break down PTO into categories. Instead, they offer a blanket number of PTO days or hours per year and allow employees to use them as they wish. For example, an employee who rarely becomes ill may choose not to take any sick days, instead leaving for a two-week vacation to Greece.
In companies where employees accrue PTO, the option sometimes exists to roll over some unused hours or days into the following year (usually with a limit). Employees who leave the organization without using all accrued PTO may receive payment for those unused days or hours.
Unlimited PTO
Unlimited PTO is a popular trend among tech sector companies. Employees may take unlimited sick days or vacation days. This concept sounds appealing, but in practice, it is more complicated than expected. Some companies frown on taking too much time off. Employees do not receive compensation for unused time at the end of the year.
Some people see unlimited PTO as a great benefit, while others view it as a liability. Even human resources (HR) professionals have strong opinions. Amy Miller, a recruiting professional and trusted career search voice, is one of them. In a recent post, she explained:?
“I don't want unlimited PTO. I am really bad at unplugging. I just am. I have WONDERFUL bosses who encourage me to take time away. I have a generous PTO package. I like getting reminders that I'm maxing out and for the love of God take some time off Ames. I like knowing that if I did indeed separate from my company, any unused PTO GETS PAID OUT.”
Increasing PTO
Other companies offer new associates a set amount of time off and increase those days as their tenure with the company increases. An employee may receive 10 days of PTO in year one but be eligible for an extra day the following year or an additional week after five years of employment.
Average PTO in the United States
Companies offer PTO to employees after they reach certain milestones or service requirements. Most vacation time does not start accruing until after 90 days or longer, although many employers make exceptions. This often happens with employees who have previously scheduled vacations before accepting a new job.
Some career experts – like Austin Belcak – stress negotiating PTO as part of the compensation package when taking a new job. Belcak explains:
“Companies give US employees 10 days PTO on average.?
European employees of those same companies get a minimum of 20 days.?
Oh, and did I mention that CEO pay rose 16% last year…
While employee compensation went down (when adjusted for inflation)?
Historically, corporations have been the ones taking a “me first” approach.?
And it typically comes at the expense of their employees’ financial and mental health.?
That’s exactly why candidates and employees should *always* negotiate.”
Of course, just because a person receives PTO does not mean they will use it. U.S. workers left an average of 4.6 vacation days on the table in 2021. Even more surprising? For employees with unlimited PTO options, the rate of time off may decrease more.?
So how much PTO do workers receive? Private sector employees usually receive 10 days after one year of service. This does not include sick days or paid holidays. The average amount of PTO a person receives will differ based on industry and type of work; government and other public sector employees usually receive more paid time off. Employee tenure can also influence the amount of PTO they receive.
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How Much Does the Average PTO Increase Over Time?
Workers accrue additional PTO per year at different rates, but it is usually gradual: often an extra three or four days per every five years of service. Some estimates show that the average amount of accumulated vacation for most U.S. workers is three weeks after 10 years with an employer.
Average PTO by Industry
How much does PTO availability differ by industry? According to a compensation survey from the Bureau of Labor Statistics, leisure and hospitality workers have less access to PTO than other workers. The survey found 43 percent of the workers in this field have access to PTO.?
Leisure and hospitality workers include hotel staff, restaurant workers, casino employees and other positions, often with high turnover that negates any PTO accumulation an employee might experience. Compare that with information (90 percent), manufacturing (95 percent) and financial workers (95 percent), who have lower turnover and enjoy the most access to paid vacation and time off.
The following figures, provided by Timetastic and Stacker, assume a company in each industry is offering PTO as a consolidated leave plan as opposed to “buckets” of days or hours:
Leisure and Hospitality
Trade, Transportation and Utilities
Professional and Business Services
Construction
Education and Health Services
Real Estate, Rental and Leasing
Information
Manufacturing
Financial Services
Insurance Carriers
How to Learn About Your PTO Policy
Employees should be intimately familiar with their company’s PTO policy because it is a significant benefit available for them to use. But what can a worker do if they are unsure how much PTO they have?
Most companies will reflect available PTO balances on pay stubs or via internal company resources on the intranet. If you can’t find the information there, the next step is to contact their HR department for any policies and procedures related to taking time off from work.
Key Takeaways
(Reporting by NPD)
Legal Assistant
2 年It is so easy to use 10 or 15 days of PTO annually. If you get the flu or covid you likely need a week off. There's five days. Then if you want to take a one-week vacation, that would use all of your time, leaving none for mental health days, long weekends, appointments, family emergencies, etc. I think when an employer shows flexibility and shows that they understand the employee's work life balance is important, it comes back to them tenfold in the employee's work performance.
Bussiness
2 年I would handliing Vacation to lombok indonesia?