Modernizing Leave Plans; Paid Time Off

About the Program

Category: Personnel Management, Employment and Training (Best in Category)

Year: 2012

As employers look for ways to remain competitive in challenging labor markets, the best performing organizations are continually evaluating their compensation and benefit programs to ensure that they can continue to attract new talent. Chesterfield County has taken a proactive approach in implementing a comprehensive program combining both paid time off and an integrated short-term disability plan for additional income protection. To accomplish this, the county assembled a team of experienced human resources and payroll professionals to design and implement a new leave plan. Paid Time Off (PTO) was designed as a single category of leave to be used in lieu of traditional annual leave, sick leave and floating holidays. When properly scheduled, PTO is used for vacations, personal or family business, illness, family illness, doctor’s appointments, or any other reason. Employees with low sick leave usage are able to take additional days off for other purposes like trips or time with their family.Interest from employees was very high; and the resulting program has increased job satisfaction, simplified leave administration and positioned the county to attract the best and brightest talent of the next generation. After five months of hiring new employees into the plan, a total of 22 percent are now enrolled. Total leave usage for sick, vacation, floating holidays and PTO is projected to shrink from $20.3 million annually to $19.5 million; and additional productivity is expected as more and more employees transition from traditional leave plans to PTO.