So your business has grown enough that you have full time employees and want to start offering benefits, including paid time off. How do you craft a vacation policy that works for you, your business and employees? There's not a one-size-fits all solution, but here are some things to think about and tips for getting started.
Establish Benefits Policy: Before you establish a policy, you'll need to figure out how much paid time off you will offer and how it will be accrued by employees. Traditionally, businesses usually offer two weeks' vacation after a certain tenure. but many modern businesses are tweaking or completely changing that model and offering two weeks of vacation right off the bat. Some companies even offer unlimited time off as long as the employee gets their work done. You'll want to choose something that meets your business's needs while providing a benefit that's attractive to employees.
Set your Policies: Employers should clearly explain how employees should request time off including how much advance notice is required is required for non-emergency situations. You will also want to specify addtional limits such as how long each absence may last and any blackout dates you have selected to deal with seasonal workload requirements. You will also need to establish procedures regarding how much, if any time off can be carried over, banked or traded as well as what situations result in "use it or lose it." Finally, specify who may approve the time off and how that response will be communicated to the employee as well as other employees through your company's 'master calendar.'
Administer your Program Fairly: If you can't afford to have too many employees absent at once, it's important to use a calendar system and set clear guidelines for vacation planning. Everyone should have a chance to take important days off, and your system should be neutral and equally enforced so that no employee feels another is getting special treatment which could lead to morale issues or litigation.
Make a Plan for Coverage: When an employee is on vacation, is it acceptable for them to leave their work until they return, or will someone else need to fulfill their duties? Will the company be responsible for arranging the coverage, or the employee? These are important questions to answer when setting a paid time off policy, so that your business doesn't suffer while your employees are away. Additionally, how will incoming phone calls, e-mails and voicemails be handled during each employee's absence.
Encourage Time Off: The idea that a good employee is one who never uses all their vacation time is outdated. Research has consistently shown that employees who take time off and maintain a good work-life balance are more productive, creative, and happy in their work. In other words, employees who take vacations are actually better employees.
For any of your business insurance questions, call or contact Yennie & Jones Insurance Agency today.
