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Tips for Creating a Paid Time Off (PTO) Program for Your New Business


Tips for Creating a Paid Time Off (PTO) Program for Your New Business

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Congrats on getting your new company off of the ground. Now that you are ready to open your doors for business, you need to think about the benefits package that you will provide for your employees. In addition to offering fair pay and health benefits, you will also need to consider the particulars of the Paid Time Off (PTO) program that you intend to provide for your staff. There's a lot to figure out for this program, but HR Avatar has plenty of tips you can use to get started.

Choose Benefits That Will Retain Employees

Recent surveys show that a great benefits package can be one of the major reasons why employees stay with their companies. While there are certain required benefits that you must provide, like Medicare, federal unemployment tax, and disability insurance, there are other perks that really excite your team, and your PTO program is one of them.

It is important to provide vacation time, sick days, and paid personal time that your employees can use when they are feeling sick, or they need some time to clear their heads. When you provide these perks, your employees will see that you appreciate them as people, and they will show their appreciation through their work and likely stay at your company longer.

Another popular incentive involves helping your employees with tuition if they want to go back to school, especially if they use online programs which come with the benefit of increased flexibility – meaning it won't negatively impact their work performance. In fact, earning a business bachelor's degree can actually increase their proficiency due to the knowledge they'll gain, making them an even stronger asset for the company.

You can also consider less traditional perks, like tuition reimbursement, paternity leave, and flexible housing. In fact, housing benefits are becoming a more sought after option for employees. You could consider setting up Airbnb-type housing options for remote workers, or look at office complexes that might establish a negotiated rate for your employees. Start by checking out apartments in the area to see what is available and what your options might be.

Questions to Ask While Creating Your Policy

Yes, creating a PTO program requires more than just telling your staff that they get 10 days off per year. Instead, there are many nuances and considerations you will need to make when forming your company.

You need to think about how you will require employees to request time off, if you will let your staff cash out their unused PTO days, and if your workers can take their vacation time with them when they leave the job. You may also have employees ask if they can borrow time from their PTO bank for unexpected occasions. Then you will need to decide which employees get PTO. Do they need to be full time or can they be contractors, and if you offer different types of PTO, then how will that work?

The point is that you need to think of every contingency and get it all down in writing so you can ensure that everyone follows the same policy. You should also ensure that your personal assets are protected through the establishment of a limited liability company. This protection is especially important as you set up new benefits, which can draw praise but also additional misunderstandings. An LLC also provides tax benefits, which can give you more funds to invest back into your employees.

Present Your Program to the Employees in a PDF

Once you have figured out all of the ins and outs of your PTO program, you need to put it all down in writing and present it to your staff. You should take your time on this step, so you don't miss a single detail. Make a note of all the rules and contingencies and provide a way for the team to reach out to you if they have questions. Once you complete and proofread the document, you need to submit a copy to every employee so they can sign their name and acknowledge their understanding of the policy. Create this form as a PDF, so it is easy to share and download.

Expect members of your team to ask questions, and those questions may lead to policy revisions. Since it can be difficult to make changes to a PDF, consider investing in a PDF to Word conversion tool. There are many versions of this tool available online, and they allow you to quickly turn your PDF into a Word document so you can make the changes easily. Once you are done, you can convert it back to a PDF, so it remains secure.

Use PDF Merging Tools to Manage Your Documents

Keep in mind that as your business evolves, you may need to add additional documents or make changes, so it is a good idea to invest in a PDF merging tool. Using this easy online application, you can merge multiple files so you can keep everything together in one place so you can access it when you need it. Moving files back and forth is easy, and it can take a lot of headaches out of keeping your policies straight.

As you fine tune your policy and add new paperwork, it is a good idea to use a cloud server to upload the forms so you can access them when necessary. There are many cloud options available, and they are great because companies often have their own cybersecurity teams, so you can ensure that your company information is kept confidential.

Support Your Team with Additional Benefits

As you can see, there is a lot that goes into creating a PTO program. However, doing what is right for your team, getting the details in writing, and using online PDF tools to manage your documents can make your program a success and your employees feel more valued.

HR Avatar is here to help you connect with the best employees out there! Call 703-688-3981.

Lexie Dy is currently working toward her MBA. She uses her spare time to volunteer for Ready Job. She is a career counselor who enjoys researching and sharing helpful job and career resources. Lexie also strives to help students and young adults be as prepared as possible for today’s challenging workforce.

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