Case study—Paid Time Off (PTO) Policies
PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the Argosy University online library and your textbooks to read about PTO policies. Now, let us go back to Company A and Company B from Module 1.
While reviewing the information from the two merged companies, the HR Director has found out that each company has two different PTO policies.
Company A has a PTO system in which employees are given 30 days of paid time off each year, which accumulates at the rate of 2.5 days a month. Under this policy, vacation and sick leave are all rolled into one paid leave and any absence whether scheduled, such as vacation, or unscheduled, such as sick leave, are taken from the accumulated leave the employee has earned.
Company B has a more traditional leave system in which employees are given 12 days of vacation, 10 days of sick leave and 10 holidays. The company is closed on those holidays. Vacation is accumulated at a day per month. Sick leave has an unlimited accumulation, but unlike vacation would not be paid out upon termination of employment.
Since the employees of the merged company will be working side by side, the HR Director has asked you to review the situation and make recommendations for a solution.
As an HR Director prepare a report addressing the following issues:
Include two to three scholarly references in your response.
Write a five-to-seven-page memo to the company’s Chief Executive Officer (CEO). Apply APA standards to citation of sources.