Traditional leave systems separate time off into vacation, sick leave, personal leave, and other types of leave. In contrast, paid time off (PTO) banks typically combine all time off benefits into one cumulative bank of days which an employee can draw upon for any need. The delineations of such plans vary by employer (Lindemann & Miller, 2012). In an organization, employees may receive time off for as compensation benefits. This may include sick leave, personal leave, vacations, holidays, etc. Different organizations have different PTO policies. Paid time off can be defined as any time that is not worked, but is paid. Although these plans are costly to companies, they view these plans as employee friendly. Companies try to offer the best
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When to pay benefits The two companies had different PTO policies about when to pay these benefits. As the human resource manager, I would address the challenge of reaching a deal which will be beneficial to all parties. Employees from Company A were paid their benefits yearly, whereas their partners in Company B were paid their time off benefits monthly. This issue might be difficult to resolve, as some parties might want to retain their own way of payment, which they might argue that it will deem best for them.
Criteria to calculate benefits Employees from the two companies might challenge the adopted merger criteria for calculation of their benefits. Though this might prove to be a challenge, one option would be to schedule to meet with some of the employee representatives and explain to them the adopted policy and why it was adopted. As the human resources manager, I would work towards the best agreement for all the employees. The company might also work at minimizing the labor costs while maximizing the productivity of the employees.
When to take Paid Time Off (PTO) The time designated for these paid time offs could also be an issue. For example, employees for Company A used to utilize their PTOs on a yearly basis, whereas Company B employees spent them on a monthly basis. One