Despite the fact that there are no federal laws in the United States requiring businesses to offer paid time off (PTO), the perk has become almost essential to the US workforce. After all, who wants to work for a company that doesn’t offer good benefits?
Between the widespread popularity of PTO and varying state requirements, many companies have found themselves compelled to provide this benefit. However, in discussions of PTO, salaried employees tend to take center stage, leaving hourly employees in the background.
Even when they do receive PTO, hourly workers face a more complicated situation: They only earn money and accrue PTO for the hours they work. Fluctuating hours and schedules can add further complexity to PTO management for hourly employees.
So, how can employers adjust their PTO policy for hourly employees? We’ll explain how you can refine your PTO policy to elevate your workplace.
Challenges faced by hourly workers in traditional PTO systems
Hourly workers face a number of challenges when it comes to receiving and using PTO—some of them similar to those faced by wage workers, others unique to hourly employees.
Not being eligible for PTO at all
Since many states don’t require paid time off, and many companies don’t offer the benefit to hourly workers, some employees may not even be able to earn PTO. Depending on the company or industry, hourly employees may not have PTO eligibility—especially if they work part-time.
Not gaining enough PTO to use
How employees gain PTO has a huge impact on whether they accrue enough PTO to actually use. If workers gain PTO in proportion to how many hours they work, part-time workers are at a disadvantage. If an employee earns an hour of PTO for every 40 hours worked, it could take some part-timers weeks to earn one hour of PTO.
Concerns about money
For hourly employees, the number of hours they work determines how much money they make, so taking time off—even if it’s paid—may not be financially feasible. They could see taking time off as losing significant income.
If they take time off during the holidays, they might forgo higher holiday pay. Likewise, many hourly workers see overtime as a chance to make more money and would rather take advantage of that opportunity than take time off.
Worries about repercussions
Many people don’t take PTO due to concerns about job security. These concerns are elevated for hourly workers because they may feel easily replaceable. Think of the restaurant, hospitality, or retail industries.
They may also feel pressure knowing the difficulty of finding coverage, depending on their shifts. This is a huge concern in high-pressure industries like healthcare.
Some hourly employees would rather give up their PTO to feel confident their job isn’t in jeopardy.
Concern about coworkers
Depending on the job, some workers may not take PTO because they don’t want to give their coworkers extra tasks. This can be especially true if the business is already understaffed.
There’s also the aspect of peer pressure. No one enjoys returning from vacation to people annoyed with them or feeling isolated from the rest of the team.
Unpredictable schedules
Hourly workers tend to have unpredictable schedules, which makes planning time off difficult. Many companies require employees to request time off weeks or months in advance, which just doesn’t align with the day-to-day reality of hourly work — or the reality that sometimes an employee needs to take an emergency day off.
If hourly employees want to make the most of their available PTO, they need to see their schedules far enough ahead of time, and that’s just not possible for many businesses (though it could be with Deputy’s smart scheduling system).
Why hourly workers want and need PTO, too
There seems to be a common misunderstanding that hourly workers shouldn’t be included in PTO. This might be because people think their jobs are somehow “easier” or that part-time hourly workers don’t need PTO. Some companies may also not want to deal with the complexity of PTO management for hourly workers.
Here’s why hourly workers need and deserve PTO just as much as other employees.
Burnout
The most obvious reason why all workers need PTO is burnout. Burnout can happen to anyone. Working constantly shifting schedules and never taking a break can lead to a burnout problem in individual employees that spreads across your entire team.
Personal responsibilities
No one ever really knows what’s happening in the personal lives of their employees. Your workers could have a lot going on you aren’t aware of as an employer. For some, PTO may involve helping care for children or elderly loved ones.
Without PTO, hourly employees have to choose between their personal and professional responsibilities — an unfair choice.
Fun
Hourly employees also deserve to enjoy life and have fun. That’s difficult to do when you follow unpredictable schedules and have little opportunity to plan time off.
Without taking time to relax and have fun, stress will build up, leading to unhappy employees and potentially significant burnout issues.
Illness
While we often think of PTO as time for fun activities and personal plans, it also covers illnesses. Many hourly employees show up to work sick because they don’t want to risk losing any income — spreading their germs to other employees and customers in the process.
Not to mention, working while unwell could make their own situation even worse. It is crucial for workers to be able to take time off for rest and recovery.
Positive adjustments to a PTO policy for hourly employees
How can you update your current paid time off policy for hourly employees so your team is happier and more productive? The following are some adjustments that might be worth making to your current leave management process.
1. Change PTO accrual
Perhaps the current way of gaining PTO isn’t working for your team. If you’re using the accrual method, try changing the policy so employees can gain more PTO with less time. For example, instead of requiring 40 hours to earn one hour of PTO, make it 20 hours. This is especially helpful for part-time workers.
Or you can eliminate the accrual method and change it to seniority-based PTO. This can be seen as a fairer system for long-term employees because it rewards their loyalty.
Do some research and see what other companies in your industry are doing to see if your PTO policy is a fair deal for both you and your employees. You could also use Deputy’s Shift Pulse feedback function to send out a quick survey about how your employees feel about current policies.
2. Offer accrual from day one
Many companies require a probationary period — often 90 days — before they allow employees to begin accruing PTO. Removing this barrier can boost morale and make a big difference for hourly employees, especially those who need flexibility from the start.
3. Implement paid sick leave separate from PTO
If you bundle general PTO and sick leave together, employees might feel forced to choose between their health and vacation time. Let employees rest easy knowing they can take time off if they get sick without sacrificing their PTO.
Sick leave also typically offers more flexibility than regular PTO since the time off doesn’t need to be planned in advance — and it’s hard to plan when you’re going to get sick!
4. Shorten the deadline for PTO requests
Consider whether your current deadline for requesting PTO might pose difficulties for hourly workers. If your company asks for a month’s notice to approve PTO requests, shorten it to two weeks.
If you’re worried you can’t handle that short of a turnaround, it may be time to update your scheduling system.
5. Adjust how you handle unused PTO
Depending on how you’re currently handling unused PTO, changing what happens to unused PTO could be an easy way to enhance your current policy.
Let’s say your employees lose their PTO if it’s unused by the end of the year. You can improve morale and engagement with just one small change — have the PTO roll over. This doesn’t directly affect profits and allows those who work less to save more time for PTO down the road.
To prevent employees from accruing an excessive amount of PTO, you can also limit how many days they can save. For example, for employees with up to three years of tenure, you could allow them to save no more than 10 days of rollover PTO. Doing so encourages employees to use PTO when they need it, knowing they can’t save up for a month-long paid vacation that leaves you short-staffed.
6. Offer rewards for PTO use
If you want to encourage employees to use their PTO, add policies that entice them to do so. You can add an extra day of PTO for those who request PTO early or offer a small vacation stipend for those who rarely use their PTO.
7. Adjust how PTO is measured
How do your employees schedule PTO? Do you require employees to request full days rather than letting them ask for half or partial days off? That method can restrict employees who may sometimes only need one or two hours off — especially those who work part-time.
Instead, break down PTO into hours so there’s plenty of flexibility for all kinds of workers and needs.
Helping hourly employees understand your PTO policy
Having a strong PTO policy for hourly employees can go a long way toward a happy workforce — but it’s essential that your employees understand how your policy works. Be sure to explain the following facets of your PTO policy to all employees so they know how to take advantage of their benefits.
How PTO is accrued
Clearly lay out for employees how PTO is earned and whether there are any time constraints. Define how the PTO policy differs for part-time, full-time, and seasonal employees.
For example, maybe your company awards PTO by seniority, so full-timers who have been with the business for three years have seven days of PTO for the first half of the year, while newer employees have five.
Whatever your company’s PTO accrual process, make sure everyone is fully informed.
How to use PTO
The best way to encourage hourly workers to use PTO is to ensure they know how to request it.
Clearly explain:
How PTO can used
The deadline for PTO requests
The overall PTO approval process
How PTO is allotted when multiple employees ask for the same time (e.g., holidays)
Blackout dates for PTO
What happens if an employee needs PTO in an emergency
How unused PTO is handled
Do your employees know what happens to unused PTO? Do you pay it out? Does it roll over? Do they lose it forever?
These answers are important to employees — and can affect how they use their PTO. For example, if employees know their PTO disappears forever, they may be more likely to use it. Meanwhile, if the PTO turns into cash, those worried about money may prefer the money over the time off.
Best practices for implementing PTO policy changes
To ensure successful implementation of any PTO policy changes, follow these best practices:
Communicate changes clearly: Make sure every employee knows the PTO policy has changed — and when the changes go into effect. Use Deputy’s mass communication feature to message all your employees, or print out an explanation of changes for each employee as they arrive for their shift.
Encourage employees to use PTO: If you think employees aren’t using PTO due to fear of retaliation or peer pressure, clearly convey that you want them to use their PTO. Tell them it will make them better employees and that you respect whatever reason they choose to use their PTO.
Explain why you’re making the changes: Share why you wanted to change your PTO policy and how you hope these changes will create a better work environment.
Ask for feedback: As the changes launch, occasionally ask employees for feedback to ensure the changes are positive for your workforce.
A win-win for employers and employees
The right changes to your PTO policy for hourly employees can bring long-lasting improvements for your company — including happier, more productive employees and increased retention.
Start auditing your PTO policy and see where there’s room for adjustments. As you make changes, consider implementing Deputy’s leave management tool to streamline the entire process of requesting PTO for both you and your employees.
