PTO policies have become good tools for HR staff to use in terms of organization
ID: 332236 • Letter: P
Question
PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the Argosy University online library and your textbooks to read about PTO policies. Now, let use the exaplme of Company A buying Company B.
While reviewing the information from the two merged companies, the HR Director has found out that each company has two different PTO policies.
Company A has a PTO system in which employees are given 30 days of paid time off each year, which accumulates at the rate of 2.5 days a month. Under this policy, vacation and sick leave are all rolled into one paid leave and any absence whether scheduled, such as vacation, or unscheduled, such as sick leave, are taken from the accumulated leave the employee has earned.
Company B has a more traditional leave system in which employees are given 12 days of vacation, 10 days of sick leave and 10 holidays. The company is closed on those holidays. Vacation is accumulated at a day per month. Sick leave has an unlimited accumulation, but unlike vacation would not be paid out upon termination of employment.
Since the employees of the merged company will be working side by side, the HR Director has asked you to review the situation and make recommendations for a solution.
Instructions:
As an HR Director prepare a report addressing the following issues:
Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for new employees.
Make a recommendation for one common PTO system. Explain your system and why you think this system is the best system for the company.
Explanation / Answer
Question : Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
Answer: The additional information about the leave travel allowances (LTA) is not provided . This is required to formulate the new common policy. This information can be obtained from company's HR personnel. The employees of comapny B is not familiar with PTO , the LTA might also defer from comapny A , So it is important to know the LTA policies.
Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
The merger of PTO system with traditional leave system will definately have some issues. First of all, the employees of company B will take time to accept the new policy because sudden change is not accepted quickly , it takes time as the human tendancy is reluctant to change. The second issue is of number of leaves , if we see ,the comapny A has total 30 days of paid off time each year excluding holidays whereas company B has 32 days in total which includes 10 days of holidays , that means only 22 days of leave. The gap between the leaves between the two comapanies is of of 8 days. So this has to be on same page. The common policy should have not less than 30 days of leaves exluding holidays. PTO might be misused by the new employees , they might take the advantage their bank of days by taking leaves for long vacations first and then come to work when they are sick. This is the only issue which will be difficult to encounter as new employees would not have to lie to thier manager like they did in the past for sick leaves.The importance of PTO has to be taught to all the employees for the sake of future uncertainity.
Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for new employees.
The only first problem is to match the number of bank of days . Two policies have unequal days of leave.company B has only 22 days excluding holidays. The PTO system will be assigned to new employees since it is benificial for employees giving them flexibility at work and one more step towards Work-Life balance.
Make a recommendation for one common PTO system. Explain your system and why you think this system is the best system for the company.
1. The number of bank of days should be 32 days ( exluding holidays).
2.The employee has to give notice 3 days prior taking leave .
3. Employees exhausting the full bank of days would not be paid for the leaves taken after the limit.
The first recommendation would balance the policy of both A & B company by providing 32 leaves. There would not be any type of protest from both the sides.
Second recommendation is to avoid the workload , unscheduledged absentism, and various problems . This will have control on employees.
Third recommendation of not getting paid after the full utilisation of thier leaves will make the employees to use thier leaves wisely and save it for future uncertainty.
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