Paid Time-Off Benefits Survey



More flexibility for PTO programs

By Leigh Culpepper and Jeremy Greenup Jun 17, 2008
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When designing a competitive and comprehensive total rewards plan, it is important to consider the value of paid time-off (PTO) benefits to employees and the cost to your organization. Results from a recent Culpepper Benefits Survey show that an increasing number of employers are improving their PTO benefit programs by making them more flexible and generous. (A demographic breakdown of survey participants is provided in the box at the end of this article.)

Types of Paid Time-Off Models Used

Most surveyed organizations (56 percent) use a traditional PTO model with days allocated to specific categories (e.g., vacation, holiday, sick & personal leave), while 41 percent have PTO bank models combining vacation, sick and personal days into one pool, allowing employees to take time-off for any reason.

In addition, 18 percent of companies allow employees to cash out unused vacation and PTO days.

Types of Paid Time-Off Models Used

Traditional Model

with

specified
# of sick & personal days

Traditional Model

without specified # of sick or personal days

PTO Bank

Other
Models

All Companies

45%

11%

41%

3%

Number of Employees

Up to 100

46%

8%

42%

4%

Over 100 to 1,000

45%

12%

42%

1%

Over 1,000

41%

16%

38%

5%

Industry Sector

Technology

47%

9%

42%

2%

Life sciences

50%

10%

38%

2%

Other

30%

22%

39%

9%

Corporate Status

Private

45%

9%

42%

4%

Public

50%

14%

35%

1%

Not-for-profit

43%

28%

29%

0%

Paid Time-Off Eligibility Periods

Fifty-two percent of companies allow new full-time employees to take paid time-off immediately on hire. One-third of companies require new employees to wait over 30 days before they can take paid time-off.

Paid Time-Off Eligibility for New Full-Time Employees

Immediate upon hire

52%

2 to 30 days

14%

91 to 180 days

13%

61 to 90 days

9%

31 to 60 days

9%

Over 180 days

3%

Paid Time-Off Accrual Schedules

The most common schedule for accruing paid time-off for existing full-time employees is biweekly.

Paid Time-Off Accrual Eligibility Schedules for Existing Full-Time Employees

Accrual occurs bi-weekly

48%

Accrual occurs monthly

22%

All days are accrued immediately at start of year

16%

Accrual occurs daily

8%

Other

4%

Number of Paid Time-Off Days

The table below shows the number of days provided by paid time-off model, type of time-off and tenure.

Number of Days by Paid Time-Off Model, Type of Time-Off, and Tenure

25th

Percentile

50th

Percentile

75th

Percentile

Traditional Model with specified number of sick & personal days

Designated Holidays

8

9

10

Floating Holidays

0

1

2

Sick & Personal Days

5

6

10

Vacation Days

1 Year of employment

10

10

15

5 Years of employment

15

15

18

10 Years of employment

15

20

20

15 Years of employment

20

20

21

20 Years of employment

20

20

25

Traditional Model withoutspecified number of sick & personal days

Designated Holidays

8

9

10

Floating Holidays

0

1

2

Sick & Personal Days

*

*

*

Vacation Days

1 Year of employment

15

15

20

5 Years of employment

15

20

20

10 Years of employment

20

20

20

15 Years of employment

20

20

25

20 Years of employment

20

23

25

PTO Bank Model

Designated Holidays

8

9

10

Pool of Unspecified Days

1 Year of employment

15

15

19

5 Years of employment

20

20

24

10 Years of employment

21

25

27

15 Years of employment

23

25

28

20 Years of employment

24

25

30

* Some traditional models allow an unspecified number of sick & personal days.

W. Leigh Culpepper, CCP, GRP, CBP, is president and CEO of Culpepper and Associates Inc., which conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs. Jeremy Greenup, CCP, is a research analyst at the firm.

Reposted with permission



Source: Culpepper Benefits Surveys, June 2008,
www.culpepper.com.

Data source:

Culpepper Benefits Survey of 279 organizations, March-May 2008.

Breakdown by industry sector:

Technology:Software 30%; IT services 11%; telecom/Internet services 7%; hardware & electronics 6%; aerospace & defense 3%; eBusiness 3%; semiconductor 3%; other technology 4%.

Life sciences: Biotechnology 4%; medical devices/equipment 6%, pharmaceutical 2%; research services 2%; other life sciences 1%.

Other industry sectors: 15%.

Breakdown by number of employees:

Up to 100: 37%; 101 to 1000: 43%; Over 1,000: 20%.

Breakdown by corporate status:

Public 65%; private 31%; not-for-profit 3%; government 1%.

Breakdown by country:

United States 83%; Canada 4%; Australia 3%; Taiwan 3%; United Kingdom 3%; Other 4%.

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