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Tag: Paid Time Off

  • 3 Steps to Turn Your Out-of-Office Reply Into a Leadership Signal

    It’s the last half of December, and most people are focused on wrapping things up and signing off. Perhaps the last thing you’ll do is set your out-of-office email responder. Out of sight, out of mind, right? Not quite. Have you ever considered that your out-of-office responder is an opportunity to communicate and reinforce your professional identity and your leadership status

    This insight came up in a recent executive coaching session with a smart client. We were talking about touch points that shape her professional identity, and she mentioned a thoughtful out-of-office reply she’d seen that made her pause and think, “This says something about who they are as a leader.”  

    She’s right. An out-of-office message might seem small, but it can be a powerful way to reinforce your personal brand. If you spend a little time managing your out-of-office status, it can work for you to reinforce your professional identity, even while you’re away. Three suggestions for how to do so: 

    1. Be clear about coverage and dates. Then, be consistent. 

    Of course, you need to be specific about the dates you’ll be gone, coverage you’ve set up, and when you will return. You also need to be consistent. 

    Be consistent with your coverage. This means identifying someone to look after urgent things when you’re away, then letting them do their job. I understand how tempting it is to jump in to “help out,” but imagine how this feels to the person you’ve designated to step in for you. If your out-of-office responder says you’re away, but you’re still actively responding, then it’s confusing to everyone you work with, including your team and your customers or clients. 

    Be consistent about dates. Don’t be tempted to over-promise regarding when you’ll be able to respond! If you’re coming back on January 2, don’t promise a response on that date. You know it’s always more overwhelming when you get back than you anticipated. So don’t overpromise. Rather, under promise and over-deliver. This isn’t just communication advice. This is life advice. 

    2. Show some personality and reinforce your leadership identity. 

    This is the opportunity that many leaders overlook. Here’s what I encourage my executive coaching clients to do. First, identify which part of your personal brand or your professional identity you want to emphasize.  

    Andrea Wojnicki

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  • Connecticut Town Trials Four-Day Workweek, Employees Love It | Entrepreneur

    Connecticut Town Trials Four-Day Workweek, Employees Love It | Entrepreneur

    The town of Canton, Connecticut, population 10,124, has been trialing a four-day workweek for its employees for nearly a month — and so far, it’s been a success.

    On September 16, the town’s non-unionized employees who work in the town hall, social services, and senior services began getting Fridays off.

    “I wanted to find a work-life balance for my employees because I think that if you can take care of your personal items at home and you’re not worried about making appointments and taking care of your kids, etc, then you’ll be more laser-focused at work,” Canton’s First Selectman Kevin Witkos told WTNH News on Monday.

    He added that town employees on the four-day schedule “love it” and “the feedback has been great” from residents.

    Related: This Country Just Implemented a 6-Day Workweek for Employees

    Town hall employees now work from 8 a.m. to 5 p.m. on Monday, Tuesday, and Thursday and work an extra hour on Wednesday, from 8 a.m. to 6 p.m. Senior and social services employees’ new schedule is from 7:30 a.m. to 4:15 p.m. Monday through Thursday.

    Administrators in the town’s Department of Public Works and Police Department are also taking part in the four-day workweek, per Witkos. The trial period lasts four months, until January.

    Canton joins other Connecticut towns, including Plainville, Redding, and Mansfield in implementing a four-day workweek.

    Related: Samsung Makes 6-Day Workweeks Mandatory for Executives

    Meanwhile, Kickstarter CEO Everette Taylor told Kevin O’Leary in July that the company implemented a 4-day workweek and they’re “very productive” within those four days.

    “I love the fact that the people at our company have interests,” Taylor said.

    Most people are willing to work more hours Monday through Thursday if they get Friday off. According to a November 2023 Gallup poll, 77% of the U.S. workforce are in favor of a 40-hour, 4-day workweek and say it would positively affect their well-being.

    The four-day workweek has also had proven outcomes. In June 2021, 70 companies in the UK experimented with it for six months. The majority found that business productivity was about the same or slightly higher than it was with a standard five-day week.

    Zoom CEO Eric Yuan told The Verge in June that AI can help cut the workweek to three or four days.

    “Why not spend more time with your family?” Yuan said. “Why not focus on some more creative things, giving you back your time, giving back to the community and society to help others, right? Today, the reason why we cannot do that is because every day is busy, five days a week. It’s boring.”

    Related: Can’t Afford a 4-day Workweek? Try a 35-hour One Instead

    Sherin Shibu

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  • 3 Truths That Might Make You Reconsider the Appeal of Unlimited PTO | Entrepreneur

    3 Truths That Might Make You Reconsider the Appeal of Unlimited PTO | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    The allure of unlimited Paid Time Off (PTO) is undoubtedly tempting: infinite vacation days, the promise of work-life balance and the freedom to manage one’s own time. But dig a little deeper, and the dream seems less paradisiacal. It’s time we address some of the unspoken realities of this increasingly popular employee “benefit.”

    Here are three truths that might make you reconsider the appeal of endless vacation days.

    Related: An HR Specialist Explains Why Unlimited PTO Can Hurt You In The Long Run

    Paid time off (PTO) is part of your negotiated salary; start acting like it!

    When we break down our remuneration package, we often consider our base salary and other perks like a healthcare package. For instance, the average healthcare benefits package makes up about 30% of a salary’s worth. So, if you’re earning a $65,000 salary, you could be looking at an additional $27,855 in benefits, bringing your total compensation to a handsome $92,855.

    However, one significant component in this calculation is frequently overlooked: vacation days. Like health benefits, these days have quantifiable value which translates to additional dollars and cents. Whether your company offers a “use it or lose it” policy or a traditional carry-over PTO policy, $3,000 is the average value of annual accrued, unused PTO that a U.S. employee holds. This locked compensation is either lost entirely (alleviating the company of any liability owed to the employee at termination) or is only accessible when that employee ultimately leaves the company (a nice and often overlooked bonus for the employee, and a not-so-nice, unexpected expense for the company).

    Yet, many of us disregard this, treating PTO as a luxury or afterthought rather than a hard-earned part of our salary package. It’s time to recalibrate our perspective and recognize the total worth of our compensation.

    Employees with unlimited PTO take fewer days off

    One might assume that employees would be more inclined to take extended breaks with no cap on vacation days. Surprisingly, the opposite is true. On average, an American worker takes 17 PTO days in a year. In stark contrast, those blessed with unlimited PTO only take an average of 10 days off.

    Why this discrepancy? The potential reasons are manifold, but one significant factor stands out: the fear of perception. Although always a factor, perception has changed drastically due to the significant influence the pandemic had over our work culture as we knew it. Employees might hesitate to frequently avail themselves of their PTO to avoid being perceived as taking undue advantage or appearing less committed to their jobs. And although 44% of U.S. employees said they prefer a hybrid work model, 31% think it’s more difficult to take time off when working from home. The lack of a defined boundary can paradoxically create a culture where taking time off becomes a rarity rather than a regularity.

    According to Sorbet’s 2022 PTO Report, although unlimited PTO policies only represent 8% of overall vacation policies offered in the U.S., the unlimited model is up 400% since 2019. This points to companies catching on to this notoriously bad policy with good marketing efforts that actually help alleviate the company of any debt owed to employees at the end of their relationship.

    Related: Unlimited Paid Vacation: ‘Jedi Mind Trick’ or Good Policy?

    Unlimited PTO is benefitting someone, just not you

    Another possible explanation? Employers’ motivation to create a culture that encourages and incentivizes PTO usage.

    At face value, unlimited PTO is a generous offering — a company prioritizing the well-being and autonomy of its workforce. This policy is positioned as if it’s an amazing benefit for employees, when in fact, it’s bad for employees and amazing for employers.

    Here’s the catch: Under traditional PTO policies, employees accrue a fixed amount of time off. If they utilize only some of their days, they can often cash out their unused days or roll them over to the next year. This means companies have a financial liability for every unused vacation day. But with “unlimited” or “flexible” vacation policies, this liability disappears. Workers aren’t accruing specific days off; hence, there’s no compensation for unused days. The shift to such policies can save companies billions, erasing a substantial financial burden off their books.

    As with many things, the devil is in the details. While unlimited PTO might sound idyllic on the surface, the underlying truths reveal a different story. Employees need to understand the intricacies of their benefits package, ensuring they’re truly getting the best deal for their well-being and financial future. Before getting swayed by the allure of endless vacation days, it’s worth pondering: Who really benefits from this arrangement?

    Veetahl Eilat-Raichel

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  • What Are Summer Hours? | Entrepreneur

    What Are Summer Hours? | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    This story was originally reported on ReadWrite and Calendar.

    In an effort to attract and retain workers, employers offer nontraditional perks across various industries. It is not uncommon for companies to implement summer office hours, such as Fridays off or reduced work hours, in order to give their employees a break.

    The history of Summer Fridays isn’t clear. However, some sources say it began in New York City during the 1960s when advertising executives would drive early on Friday morning to the Hamptons, a rich, rural area on Long Island.

    By the 21st century, 55% of employers offered summer Fridays. There are more summer hours schedule components than just Summer Fridays.

    You can offer your employees flexibility during the summer

    During the summer, staying productive at work can be challenging — to say the least. It’s a popular time of year to take vacations, visit family, and otherwise stay away from work. As a result of these factors, as well as the temptation to skip work to enjoy nice weather, summers are less productive.

    Related: Some People Aren’t Cut Out to Be Managers — And That’s Okay. Here’s What You Can Do Instead.

    If you offer summer hours, your employees can plan their work around vacations and holidays. When productivity dips, and projects take longer to complete, employees are more likely to complete them if they are provided incentives. In addition, employees are more likely to front-load their work week during summer hours.

    Increased productivity during the summer

    Continuing from the previous point, weather-based timetables make employees happier and more productive. Are you aware that happy people are also 12% more productive? This is a win-win situation for both your employees and your company.

    As a result of the increased focus, employees can accomplish more tasks. The assumption is often made that remote work on Fridays or on days off will negatively impact productivity. The opposite is true, according to Opinion Research Corporation. In the study, 66% of employees who enjoy summer hour benefits are more productive.

    Further, the 4 Day Week Global Foundation undertook a study in 2022 to determine the implications of a four-day work week, similar to the schedules of some businesses during the summer. The study found that businesses with reduced work hours were more productive and performed better. In some cases, revenue increased for these organizations.

    There is an upswing in morale among employees

    When the weather outside is nice, your employees might feel demotivated. However, when morale is low during the middle of the year, summer hours are a great way to boost it. This gives them something to look forward to at the end of the week.

    Related: Want To Make Money As a Freelancer? Avoid This Mistake That Can Cost You Clients.

    It is through all of these things that employee satisfaction can be improved. When there is a high level of employee morale, teammates work together more closely and are more self-confident.

    A higher level of employee satisfaction

    In order to increase employee satisfaction, companies can emphasize work-life balance and summer hours. This leads to more loyal employees and fewer employee departures.

    Absenteeism decreases

    Employees are allowed to take vacations or other obligations during summer hours, reducing absenteeism. Therefore, it is possible to run the workplace smoothly, and the costs of replacing absent employees are reduced.

    As stated by Circadian in their ‘Absenteeism: The Bottom-Line Killer,’ unscheduled absences cost hourly workers roughly $3,600 per year. For salaried employees, it costs roughly $2,650 per year.

    A greater level of creativity among employees

    Taking time off for vacations or sick leave encourages employees to be more creative, according to research. By doing so, new ideas and innovations can be generated.

    An increase in employee health and well-being

    It is also beneficial to your health to have summer hours. When your employees constantly work without time to play, their health can quickly deteriorate. In your role as an employer, you must promote a healthy work environment.

    In the words of the Families and Work Institution’s Senior Director of Research, Ken Matos, “The simple reality is that work, both mental and physical, results in fatigue that limit the cognitive and bodily resources people have to put towards their work.”

    Furthermore, your employees will benefit from summer schedules after working a 4 or 4.5-day week in hot weather. Employees with Fridays off can also take a 3-day vacation to relieve stress and prevent burnout.

    You can also reap long-term benefits from providing your employees with sick days or mental health days. As well as increasing employee engagement, corporate healthcare costs will likely decrease.

    An improved company culture

    Additionally, summer hours can contribute to a more relaxed, fun work environment. The result is an increase in employee engagement and productivity.

    As Patrick Whitesell, Co-CEO of WME, puts it bluntly, “You can have all the right strategy in the world; if you don’t have the right culture, you’re dead.”

    Trust and respect are demonstrated

    Offering flexible summer work hours is one of the most important benefits of showing respect to your employees. By providing this key benefit, employers signal to workers that they can trust them to take care of their responsibilities to the fullest extent possible on Fridays.

    Typically, these gestures of trust increase employee engagement and loyalty.

    Retention, sustainability, and cost savings are improved

    Again, summer hours are becoming increasingly important when recruiting and retaining top talent in an increasingly competitive job market. Because of this, companies are becoming increasingly dependent on flexible working arrangements. One way to demonstrate that your business is flexible is by offering summer hours to your employees.

    Also, by shutting down the entire office every week, businesses will save on electricity and other operational costs. In addition, your sustainable business model can contribute to the conservation of natural resources.

    Costs associated with turnover were reduced

    It can be expensive to hire, train, and replace an employee. However, turnover costs can be reduced by summer hours.

    According to some studies, it costs a business on average, 6 to 9 months’ salary to replace a salaried employee. For example, recruiting and training expenses typically amount to $30k to $45,000 for an employee earning $60k a year.

    Enhanced customer service

    When employees are happier and more productive, they are more likely to provide good customer service. Customer satisfaction and loyalty can increase, boosting the company’s profitability.

    Conclusion

    When offering summer hours to your employees, there are a few things to consider. The first step is ensuring that your company can handle the reduced hours without sacrificing productivity. Additionally, it would be best to inform your employees well before the change so they can plan accordingly. Lastly, it would be best if you were flexible and willing to adjust your schedule as needed.

    Summer hours can boost employee morale, productivity, and loyalty. With summer hours, your company can attract top talent and improve profits.

    John Hall

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  • How to Set Boundaries and Take a Break | Entrepreneur

    How to Set Boundaries and Take a Break | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    It’s all too easy to stay on call and available 24/7/365 when you’re one of the company’s top executives. Good leaders want to make themselves accessible, but good leaders also know it’s essential to take breaks regularly — and to take a vacation at least once a year. It’s essential if you’re self-employed or a freelancer too. Taking a break now and then helps keep your business from taking over your entire life.

    What’s more, vacation-positive workplace culture is good for business. Encouraging employees to take vacations helps improve their productivity, reduces job dissatisfaction and raises employee engagement. Work-life balance might seem elusive, but it’ll help you reduce a high turnover rate and the costs associated with it. It’s an essential part of a productive, supportive work environment.

    John Boitnott

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  • Offer Unlimited Paid Time Off (The Right Way) To Attract Talent | Entrepreneur

    Offer Unlimited Paid Time Off (The Right Way) To Attract Talent | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    As a business owner or senior manager, I’m sure you’re well aware of the unlimited paid time off (PTO) debate. Is this for real? Is this a joke? Like many of my clients, you probably shrugged it off as a fad or something that isn’t practical. But many companies are finding out it can be very practical, and a powerful benefit to offer.

    That’s what a recent study conducted by HR platform Namely found. According to the study, 34.5% of the more than 1,000 companies surveyed offer an unlimited PTO plan, a number that has significantly risen over the past few years.

    Yes, your business can have an unlimited paid time Off (PTO) plan. And sure, there are a lot of pros and cons, a few of which I describe below. But an unlimited PTO plan is not as hard to implement as you may think. And for me, the benefits significantly outweigh the costs.

    Related: The Hidden Dangers of Not Taking Your Vacation Days

    So if you’re thinking about it, here are a few things that I’ve learned from some of my clients who are doing this the right way.

    The first thing to know is that your unlimited PTO plan doesn’t have to be your only PTO plan. Most of my clients with unlimited PTO plans have multiple plans. For example, there’s a PTO plan for hourly employees which may be the standard 2-3 weeks of vacation plus sick days and then another plan for salaried or senior managers that allows more time off and may include sick days.

    Your PTO plan is your decision. There’s no law (yet) about the type of plan you offer (although some states — like Illinois, Maine and Nevada — are requiring employers to provide vacation time). The unlimited PTO plan that you offer to your employees can be the ultimate nirvana, the mecca, the peak and the top of the heap of all vacation benefits. It can be the goal that everyone wants to reach, but to do so, they must perform. This brings me to my next point.

    And that is that people should only be eligible for your unlimited PTO plan after fulfilling certain requirements. For my clients with these plans, they only consider employees who have been working for them for at least two years and sometimes as many as five. It’s a perk for loyalty and good work. Other eligibility requirements may include the employee’s position in the company, compensation levels or meeting certain performance milestones. So many of us are struggling not only to attract new talent but retain our best people, and an unlimited PTO plan can be the carrot on the stick for doing this, which brings me to my next point.

    Related: Microsoft Employees Will No Longer Have to Earn Vacation Days Thanks to This New Policy

    And that is that unlimited PTO plans are a great sell. Most workers love the sound of “unlimited” when it comes to their vacation. The workplace has changed, and now, besides offering healthcare and retirement plans, good companies are also revisiting the concept of flexibility by offering more remote working and time off opportunities. So if you’re able to make such a plan viable in your company, you’ve got a great sales pitch to attract talent — particularly younger talent who value this benefit more — in these times of tight labor.

    Just be aware of the drawbacks. For example, studies like the one Namely conducted have shown that employees that work at companies with unlimited PTO plans have generally taken less time off than they were taking under previous use-it-or-lose-it plans. This is a potential mental health issue, which has caused some companies to require that employees take at least two weeks off.

    “Clearly, unlimited PTO has gained credibility as an employee benefit, but to what end?” says Amy Roy, Namely’s Chief People Officer. “Regardless of their company’s plan, workers seem to be taking less time off. Employers concerned about the wellbeing and retention of their workers encourage the use of paid time off, as it gives employees the chance to reset and refresh.”

    Like Roy, you still may have concerns about your employees’ mental health. And you may have other concerns too.

    Related: Companies Need To Be Better at Hiring, Not Firing. 7 Tips To Pick And Retain The Best Talent During Uncertain Economic Times.

    You may be saying how in the heck can your company avoid having employees disappear for weeks or months on end while taking advantage of their unlimited PTO plan? Well, I’ve learned from a few successful clients to include an important caveat.

    It’s this: yes, an employee can take “unlimited” time off, but any time off must be approved in advance by a supervisor. That type of policy then ensures that someone isn’t going to say, “Hey, I’m surfing in Australia for the next few months, see ya!” As long as a supervisor is happy with the amount of time someone is taking off, then good for everyone all around. It’s a strong control to avoid people really taking excessive advantage of your program.

    The takeaway is that today’s workers love to talk about “4-day work weeks” and “bare minimum Mondays” and, as frustrating as this may sound to business owners who are doing just the opposite, smart companies have to respond with benefits that help employees achieve greater flexibility and work-life balance. An unlimited PTO plan can be just that if implemented the right way.

    Gene Marks

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  • The Hidden Dangers of Not Taking Your Vacation Days | Entrepreneur

    The Hidden Dangers of Not Taking Your Vacation Days | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    For many Americans, working without vacation time has become routine. However, even when workers have paid time off, they often find it difficult to pull the trigger and step away from work. Why the guilt?

    A decision to not use vacation days could end up being one that a worker majorly regrets. Depending on their career, American workers often receive zero compensation for unused PTO days should they change jobs. Instead of using up paid time off that was granted to them as a benefit upon hire, workers often end up having to relinquish those unused days without anything to show for it.

    Ryan Droste

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  • Microsoft Is Giving Employees Unlimited Time Off

    Microsoft Is Giving Employees Unlimited Time Off

    Microsoft is starting the new year with a generous new policy for its U.S. employees.


    Stephen Brashear | Getty Images

    Microsoft Headquarters in Redmond, Washington

    Starting January 16, Microsoft is implementing a “Discretionary Time Off” policy, which gives employees unlimited time off without needing to accrue vacation days. Any employees who currently have unused PTO days will get a one-time payout in April.

    “How, when and where we do our jobs has dramatically changed,” Kathleen Hogan, Microsoft’s chief people officer, wrote in a memo obtained by The Verge. “And as we’ve transformed, modernizing our vacation policy to a more flexible model was a natural next step.”

    Related: I Was a Skeptic, Now I am Convinced Unlimited PTO is Good Business

    The policy only applies to salaried employees in the U.S. and excludes overseas workers and hourly employees. Microsoft says it’s difficult to offer unlimited time off to hourly and foreign workers due to differing laws and regulations, according to The Verge.

    The new policy comes as more companies have adopted flexible work schedules following the pandemic. When lockdowns rocked workplace norms irrevocably, what followed was The Great Resignation, where large numbers of workers left jobs in search of a more balanced lifestyle. As employees set new standards, companies have revved up perks and benefits to attract and retain talent in a tight labor market where many individuals seek more than just a paycheck — and unlimited time off is not a bad place to start.

    Related: How Companies are Offering Perks to Their Remote Workforce

    Madeline Garfinkle

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