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Tag Archives: What are the drawbacks of your recommended PTO policies?

July 2, 2025
July 2, 2025

Paid Time Off Policies

Watch the following advertisement from HMP Finance:

Why Generous Paid Time Off Policies Pay For Employers

(HMP Finance, 2017)

As we see from the video, HMP Finance recommends employers to have generous paid-time-off policies.

· If you were in charge of a business, what paid-time-off benefits would you implement to help retain and attract great employees? Why?

Paid Time Off Policies

· What would be the strengths and drawbacks of offering the paid-time-off benefits that you recommend?

Support your responses with information from at least two reputable sources (library and/or Web-based), and provide the full citation at the end. Use APA format for your references. Share your own personal experiences, if applicable.

Subsequent Posts—Module 3

After some of your classmates have posted, read through their contributions and enter individual responses to  at least two classmates’ posts.

Paid Time Off Policies

  1. What paid-time-off (PTO) benefits would you implement to retain and attract talent?,

  2. Why would you choose those benefits?,

  3. What are the strengths of your recommended PTO policies?,

  4. What are the drawbacks of your recommended PTO policies?,

  5. Can you support your response with two reputable sources?


General Discussion Response:

If I were leading a business, I would implement a comprehensive and flexible paid-time-off (PTO) policy that includes:

  • Unlimited PTO (with manager approval)

  • Mandatory minimum vacation use

  • Paid parental leave (up to 16 weeks)

  • Mental health days

  • Volunteer time off (VTO)


Why These Benefits?

These policies are designed to support employees holistically—promoting work-life balance, family needs, mental well-being, and community involvement. In a competitive labor market, generous and flexible PTO demonstrates that a company values its people, not just productivity.


Strengths of These PTO Policies

  1. Increased Retention and Attraction
    A Glassdoor study (2022) found that generous PTO is among the top five non-financial benefits influencing job choice.

  2. Improved Employee Well-Being and Productivity
    The Harvard Business Review (2020) highlights that regular time off decreases burnout and improves creativity.

  3. Stronger Organizational Culture
    Offering VTO and mental health days signals a values-driven and compassionate culture.

  4. Competitive Differentiator
    These benefits help smaller firms stand out against competitors with higher salaries but fewer perks.


Drawbacks of These PTO Policies

  1. Potential for Abuse
    Unlimited PTO can backfire if not managed well. Employees may either overuse it—or feel unsure about taking time off and underuse it.

  2. Operational Disruption
    Without proper planning, extended leaves or frequent absences could impact team productivity and deadlines.

  3. Financial Costs
    Paid parental leave and VTO represent financial investments, especially in smaller firms.


Conclusion

While there are operational and financial considerations to account for, the overall ROI of generous PTO policies includes increased morale, reduced turnover, and a stronger employer brand. Careful planning, clear guidelines, and leadership support are key to making these policies effective and sustainable.


References

Harvard Business Review. (2020). Research: Taking vacation is good for your health. https://hbr.org/2020/12/research-taking-vacation-is-good-for-your-health

Glassdoor. (2022). 50 HR and recruiting stats for 2022. https://www.glassdoor.com/employers/blog/hr-stats/

Let me know if you’d like help drafting replies to classmate

Paid Time Off Policies