{"id":2429,"date":"2018-05-09T19:34:36","date_gmt":"2018-05-09T19:34:36","guid":{"rendered":"https:\/\/www.hrdirectapps.com\/blog\/?p=2429"},"modified":"2021-10-07T13:52:47","modified_gmt":"2021-10-07T13:52:47","slug":"how-to-manage-paid-time-off-in-your-nonprofit-business","status":"publish","type":"post","link":"https:\/\/www.hrdirectapps.com\/blog\/how-to-manage-paid-time-off-in-your-nonprofit-business\/","title":{"rendered":"How to Kick Off a PTO Program for Your Nonprofit Business"},"content":{"rendered":"<p>Unscheduled absences are a huge concern for cost-conscious nonprofits. By disrupting workflow and draining productivity, these absences can cost you thousands of dollars each year. But there are solutions!<\/p>\r\n<p>First, it may be time (ahem!) to kick off a paid time off (PTO) program. Employees juggle multiple non-work responsibilities \u2014 and inevitably will need (and want) days off. Rather than split out vacation, sick and personal time off, a PTO plan provides a bank of paid days for them to use as they like. These flexible plans are extremely appealing to employees and, best of all, can play a positive role in overall workplace attendance.<\/p>\r\n<p>Next, it\u2019s important to step up your daily attendance-tracking efforts. After all, to effectively manage attendance, you need to know who\u2019s present and who\u2019s not \u2014 and why. We\u2019ll answer some questions you may have about this \u2014 and introduce a tool that can cut this task down to size.<\/p>\r\n<h2>PTO Pointers to Put You on the Right Path<\/h2>\r\n<p>You may be surprised to learn there are no federal laws requiring you to grant PTO. This means you have options in creating a structure that works best for your nonprofit.<\/p>\r\n<p>Typically, nonprofit employers tie PTO benefits to the employee\u2019s length of service. For example, you may give two weeks after one year, three weeks after five years, four weeks after 10 to 15 years, and five weeks after 25 years of service.<\/p>\r\n<p>When crafting your PTO plan, consider these key factors:<\/p>\r\n<ul>\r\n    <li><strong>Accruals<\/strong>: Do employees get all PTO automatically on January 1, or do they earn PTO for every hour or week they work?<\/li>\r\n    <li><strong>Rollovers<\/strong>: Can employees roll over PTO each year? If so, how much can be rolled over?<\/li>\r\n    <li><strong>Part-time vs full-time<\/strong>: Do these benefits differ for part-time employees? Who is eligible to receive PTO?<\/li>\r\n    <li><strong>Blackout periods<\/strong>: Are there any times of the year when employees can\u2019t use PTO?<\/li>\r\n    <li><strong>Request procedure<\/strong>: How can employees request time off? What is the approval process?<\/li>\r\n    <li><strong>Unused days<\/strong>: When employment ends, are employees paid for unused PTO?<\/li>\r\n<\/ul>\r\n<!-- Green Box-->\r\n<div class=\"greenBorderTipBox\">\r\n    <p>Rollovers are an especially important aspect of your PTO plan. Interestingly, <a href=\"https:\/\/webcache.googleusercontent.com\/search?q=cache:N2NcOZchTV8J:https:\/\/www.projecttimeoff.com\/sites\/default\/files\/PTO_SHRMProductivity_Report_0.pdf+&amp;cd=1&amp;hl=en&amp;ct=clnk&amp;gl=us\" target=\"_blank\" rel=\"noopener\">a study by the Society for Human Resource Management (SHRM)<\/a> found that 70% of nonprofits are more likely than publicly and privately owned for-profit companies to allow a limited number of vacation days (1 to 10) to be rolled over from one year to the next. This rollover approach gives employees more flexibility than requiring all vacation days to be used annually.<\/p>\r\n<\/div>\r\n<p>Along with PTO, you may choose to offer paid holidays. Again, there are no laws requiring you to close on specific days, but many nonprofits opt to shut their doors on:<\/p>\r\n<ul>\r\n    <li><strong>New Year\u2019s Day<\/strong><\/li>\r\n    <li><strong>Memorial Day<\/strong><\/li>\r\n    <li><strong>Fourth of July<\/strong><\/li>\r\n    <li><strong>Labor Day<\/strong><\/li>\r\n    <li><strong>Thanksgiving<\/strong><\/li>\r\n    <li><strong>Christmas<\/strong><\/li>\r\n<\/ul>\r\n<p>You also may want to provide paid time off for your <a href=\"http:\/\/smallbusiness.chron.com\/pto-policies-nonprofits-39090.html\" target=\"_blank\" rel=\"noopener\">employees to volunteer<\/a> for community activities that support your nonprofit\u2019s mission. For example, employees of Blue Cross and Blue Shield of Minnesota (a nonprofit independent licensee of the Blue Cross and Blue Shield Association) are eligible for 20 hours of volunteer PTO each calendar year, to be used during a normal workweek.<\/p>\r\n<p>Your nonprofit can enhance employee benefits even further by offering time off for additional reasons, such as a death in the family, jury duty and military reserve training. Obviously, this will depend on your payroll budget and what you can allocate toward extra paid days.<\/p>\r\n<p>For all of the above \u2014 your PTO plan, paid holidays and additional days off \u2014 you should have a time off policy that outlines the details and complements your attendance policy (see below).<\/p>\r\n<!-- Did you know? -->\r\n<div class=\"smartTip row\">\r\n    <div class=\"col-xs-12 \"><img id=\"SmartTip\" class=\"img-responsive\" src=\"https:\/\/www.hrdirectapps.com\/blog\/wp-content\/themes\/hrdirectapps\/images\/did-you-know.jpg\" \/><\/div>\r\n    <div class=\"col-xs-12 smartTipContent\">In The Voice of Nonprofit Talent study by <a href=\"http:\/\/commongoodcareers.org\/index.php?\/articles\/detail\/the-voice-of-nonprofit-talent-in-2008\/\" target=\"_blank\" rel=\"noopener\">Commongood Careers<\/a>, nonprofit job seekers ranked \u201cvacation policies\u201d and \u201cflexible work plans\u201d among the benefits most important to them. These factors outranked traditional benefits such as dental, vision, bonuses and family care.<\/div>\r\n<\/div>\r\n<h2>What Nonprofits Need to Know about Attendance Tracking<\/h2>\r\n<p>So, you\u2019re closer to developing a PTO plan that allows employees to use earned time off for their own personal reasons. Great! Keep in mind, however, that even though this creates structure around time off, you still need to manage day-to-day attendance. Only by doing this can you monitor unexcused absences and reduce their impact on your nonprofit. Here are answers to a few questions you may have about that:<\/p>\r\n<ol>\r\n    <li><strong>Do I need an attendance policy?<\/strong><\/li>\r\n    <p>Yes. A <a href=\"https:\/\/www.hrdirectapps.com\/blog\/employee-absenteeism-negatively-affects-morale\/\" target=\"_blank\" rel=\"noopener\">formal, written attendance policy<\/a> is the foundation of any solid attendance-management strategy. Whether it\u2019s a stand-alone document or part of your employee handbook, your attendance policy should cover work hours, start and finish times. It should also explain the notification and reporting procedures if an employee is going to be late or absent due to illness or other circumstances.<\/p>\r\n    <li><strong>Who should track attendance in our workplace?<\/strong><\/li>\r\n    <p>The job of tracking employee attendance, as well as addressing problems, ultimately lies with your supervisors. Like it or not, it comes with the job of managing people \u2014 and it\u2019s critical to your nonprofit\u2019s success. Make sure your supervisors are trained on the specifics of documenting attendance and how to intervene with attendance issues.<\/p>\r\n    <li><strong>Is tracking the absences of the biggest offenders enough?<\/strong><\/li>\r\n    <p>No. It\u2019s important to <a href=\"https:\/\/www.hrdirectapps.com\/blog\/how-to-document-and-discipline-employee-attendance-problems\/\" target=\"_blank\" rel=\"noopener\">capture <strong>every<\/strong> incident<\/a> of absenteeism or tardiness, including the date, time and reason for the incident. This documentation provides the information you need to make disciplinary decisions, such as: the reasons for the absences and whether they are unexcused, excused or otherwise protected by law; troubling patterns (e.g., calling in sick after holidays); the overall impact of repeated tardiness in terms of \u201ctotal hours missed\u201d; and how an employee\u2019s attendance compares with others.<\/p>\r\n    <li><strong>How should I address a problem?<\/strong><\/li>\r\n    <p>Identifying the problem is the first step, which is easier to do with proper tracking. Once you notice a troubling pattern, talk to the employee about it. <a href=\"https:\/\/www.hrdirectapps.com\/blog\/how-to-successfully-handle-an-employee-disciplinary-meeting\/\" target=\"_blank\" rel=\"noopener\">Prepare for the discussion<\/a> by gathering all the facts, such as the dates of the absences, the reasons for each incident and any supporting documentation or notes. For an employee attendance problem that persists despite verbal counseling, a formal disciplinary write-up may be necessary.<\/p>\r\n<\/ol>\r\n<h2>Smart, Affordable Attendance Tracking for Nonprofits<\/h2>\r\n<p>The right tools can make a big difference in how you manage employee attendance. Rather than restrict yourself to paper calendars or spreadsheets, consider an easy-to-use electronic solution. As part of the <a href=\"https:\/\/www.hrdirectapps.com\/hr-recordkeeping-revolution\/nonprofits\/\" target=\"_blank\" rel=\"noopener\">HR Recordkeeping (R)evolution<\/a>, nonprofits can receive select HRdirect Smart Apps free for one year. This is the perfect opportunity to try out the <a href=\"https:\/\/www.hrdirectapps.com\/attendance-calendar\/\" target=\"_blank\" rel=\"noopener\">Attendance Calendar app<\/a>. It helps you maintain accurate records and quickly spot troubling attendance patterns \u2014 all in one convenient, online view.<\/p>\r\n<!-- Green Box -->\r\n<div class=\"greenBorderTipBox\">\r\n    <div class=\"gbTitle\">Key Takeaways<\/div>\r\n    <ul>\r\n        <li>An employee\u2019s PTO bank is typically based on length of service<\/li>\r\n        <li>Accrual and rollover are two important factors to consider with a PTO plan<\/li>\r\n        <li>You may opt to provide paid time off for employees to volunteer<\/li>\r\n        <li>Effective attendance management starts with a workplace policy<\/li>\r\n        <li>Online attendance tracking is ideal for controlling unscheduled absenteeism<\/li>\r\n    <\/ul>\r\n<\/div>\r\n<div class=\"row recordkeeping-banner\">\r\n    <div class=\"col-xs-12 rk-bkg\">\r\n        <div class=\"badge-container\"><img title=\"HR Recordkeeping Revolution\" src=\"\/img\/recordkeeping_revolution_badge.svg\" alt=\"HR Recordkeeping Revolution\" \/><\/div>\r\n        <div class=\"content\">\r\n            <p>The<\/p>\r\n            <p class=\"rk-center\">Recordkeeping<\/p>\r\n            <p class=\"rk-center\"><span>[<\/span>R<span>]<\/span>evolution<\/p>\r\n            <p>Begins Here<\/p> <a class=\"btn cta-btn\" href=\"https:\/\/www.hrdirectapps.com\/hr-recordkeeping-revolution?itm_source_s=blog&#038;itm_medium_s=banner&#038;itm_campaign_s=revolution&#038;itm_content_s=nonprofits\" target=\"_blank\" rel=\"noopener\">Learn More<\/a> <\/div>\r\n    <\/div>\r\n<\/div>","protected":false},"excerpt":{"rendered":"Unscheduled absences are a huge concern for cost-conscious nonprofits. By disrupting workflow and draining productivity, these absences can cost you thousands of dollars each year. But there are solutions! First, it may be time (ahem!) to kick off a paid time off (PTO) program. Employees juggle multiple non-work responsibilities \u2014 and inevitably will need (and&#8230; <a href=\"https:\/\/www.hrdirectapps.com\/blog\/how-to-manage-paid-time-off-in-your-nonprofit-business\/\" class=\"readMore\">read&nbsp;more<\/a>","protected":false},"author":13,"featured_media":2433,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,6],"tags":[36,33,9],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Manage Paid Time Off in Your Nonprofit Business<\/title>\n<meta name=\"description\" content=\"Unscheduled absences are a huge concern for cost-conscious nonprofits. By disrupting work flow and draining productivity, these absences can cost you thousands of dollars each year. But there are solutions! Learn how you can kick off a paid time off (PTO) program for your nonprofit business today.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrdirectapps.com\/blog\/how-to-manage-paid-time-off-in-your-nonprofit-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Manage Paid Time Off in Your Nonprofit Business\" \/>\n<meta property=\"og:description\" content=\"Unscheduled absences are a huge concern for cost-conscious nonprofits. By disrupting work flow and draining productivity, these absences can cost you thousands of dollars each year. But there are solutions! 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