It’s easy to see the attraction of paid time off (PTO) for your employees, but there are also important business benefits to PTO as well. In fact, fast-growth companies are more likely to provide this benefit to workers than zero-growth firms. By offering PTO, businesses can increase their retention, improve employee engagement, and boost productivity. 

Do You Offer Paid Time Off?

Recently, Asure conducted a survey of more than 1,000 small businesses. In our survey, we discovered that fast-growth companies shared a few common traits. As one of our five benefits questions, we asked employers if they offered time off. 

This is what our survey found out. 

• 83% of fast-growth businesses give employees PTO. 
• 81% of zero-growth companies provide PTO.

Out of all the benefits questions, this one had one of the smallest spreads. Fast-growth companies were more likely to provide PTO to workers, but zero-growth businesses also offered this benefit. 

Depending on where you live, you may be legally obligated to provide mandated sick time or paid leave. Around half of states mandate sick pay. Close to a third of states also have some form of paid leave or family leave program. 

The 7 Benefits of Providing Paid Time Off for Your Workers 

In a recent Pew Research Study, 43% of employees reported leaving a job because it didn’t have good benefits, like paid leave and insurance. If you aren’t offering paid leave, you could be losing workers prematurely. No matter how much PTO you decide to offer, it’s important to be consistent. If you give one marketing assistant a week of leave, a marketing assistant with a similar tenure should also get a week of leave. When it comes to HR, consistent practices ensure fairness. Treating all employees the same also prevents legal exposure and discrimination complaints.

As an employer, providing PTO offers some of the following benefits.

1. Reward Loyalty 

PTO is an excellent way to reward your workers’ loyalty. As an employee accrues more tenure, you can increase the amount of paid leave they receive each year. 

Besides rewarding your workers, PTO can also be an incentive to keep people from quitting. An employee who has been with you for a decade would likely get less PTO if they go to another company, which makes new jobs less appealing. 

2. Reduced Absenteeism 

Workplaces that have PTO policies generally have less absenteeism. Instead of calling in sick because they wanted a long weekend, employees can take vacation days and ask for time off in advance. 

Asure’s VP of HR compliance, learning, and development,  Mary Simmons, recently shared a PTO experience with a client during a Mission to Grow podcast. She was working with a client who ran a manufacturing company in New York, and he said that he didn’t provide any PTO. If employees wanted time off, he just let them take as much unpaid time as they needed 

New York has a sick leave law, so the manufacturer’s situation clearly had to change. After the switch, the manufacturer found employees took fewer sick days. Some employees previously took up to three weeks a year. Now, they only get five days of sick pay.

3. Attract Top Talent 

Many workers expect paid leave. If you aren’t offering PTO, you could be missing out on top talent. When disaster strikes, paid leave allows workers to care for a family member without having to choose between their loved one and a job. This is especially important because many workers can’t afford to take unpaid time off. 

4. Follow State and Local Regulations 

While it might not be exciting, legal compliance is an important benefit to providing PTO. Many states and local areas require sick days, vacation time, or family leave. Here are some examples of these policies. 

New York: Based on how many workers businesses have, New York requires as much as 40 to 56 hours of sick and family leave.

Texas: Unlike some states, Texas doesn’t require any form of sick or paid leave.

Washington: In Washington state, employers must provide paid sick leave. However, the paid family leave program is paid through the state and funded through payroll taxes. 

New Hampshire: New Hampshire doesn’t require employers to provide leave. Workers do get up to 60% of their pay through the state’s voluntary paid family and medical leave plan.

California: California requires businesses to give an hour of sick leave for every 30 hours the employee works. The state also has a paid leave program that’s funded through the state’s disability insurance.

5. Save Money 

While the actual PTO days cost money, they can actually save you money overall. By offering PTO, you’ll likely experience less absenteeism and better productivity. In addition, it can lower your training costs by decreasing turnover at your company. 

6. Happier Workers 

When workers have a chance to rest, relax, and recharge, it improves their attitude. In comparison, studies show overworked employees who put in long hours are less productive at all times of the day. Happy, relaxed workers are better for your bottom line.

7. More Notification Before Time Off

If employers can access vacation leave, they don’t have to call in sick whenever they need time off. Instead, they can ask for vacation time in advance when they want a long weekend away or a week-long trip to the Bahamas. As an employer, this means you’re more likely to be notified.

Additionally, providing employees with sick leave makes it easier and more affordable for them to go to the doctor. These regular appointments are important for overall health, so they can prevent future illnesses and time away from work. 

Discover More About PTO and Other Employee Benefits

As a small business owner, there are a number of ways you can benefit from offering paid time off. PTO can help you attract talented employees, reward employment longevity, and increase your company’s productivity. 

To find out more information about offering paid leave at your company, reach out to our small business payroll and HR experts today.