Paid Time Offs

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In an organization, employees may receive compensation benefits as for time offs. They may include sick leave, personal leave, vacations, holidays and even sabbaticals. Employers are aware that their employees need a break. Different organizations have different PTO policies. Paid time off can be defined as any time, which is not worked, but is paid. Although these plans are costly to companies, they view these plans as employee friendly. Companies try to offer the best plans, which are very competitive in attracting and retaining the talented workforce (Smith, 2012). Most of The employers prefer to come up with paid time off plan. This creates a flexible arrangement that allows the employee to use his/her off days at his/her discretion. The …show more content…

For instance, employees for Company A used to utilize their PTOs on a yearly basis, whereas Company B employees spent them on a monthly basis. One time might feel their time period was better than the other party. Employees from Company B might also feel their plan was the best as they did not accumulate these PTOs. This will also be a difficult issue, but we will try to harmonize and encourage most employees to take their PTOs at low work. This will be aimed at minimizing the labor costs when the work levels are low. Pay rate adjustment Issue This will be a critical issue. Most employees value their pay more than their working conditions. The two company’s employees will be bargaining for more pay than what they were earning at their previous single companies. Though they might want the company to raise their rates, the management might even be planning to slash them. A committee will have to form to look into this matter, as it is not a light matter. The personnel department will work for the best interests of the employees, through negotiating better pay rates. Conditions attached to …show more content…

As a merger, the company will now need a PTO policy that is same for all employees working in the merger. Some problems might arise if the two systems operate. Apart from running a costly human resource benefit system, there will be problems with employees operations. One section of the employees operating under a particular system might feel discriminated. This feeling might fuel un-cooperation in the work processes and create divisions in the workforce. This might lead to low productivity, and in extreme cases it can lead to industrial actions. Employees might term such actions as unfair thus negative merger publicity (Smith, 2012). All new employees will be direct to the PTO system, which was used by Company A. New employees cannot be expected to take leave their first months as they are still trying to catch up with the organization policies and month long off might cause their learning interruption. I would recommend the one PTO system, which was used by Company A which involved employees getting 30 days of paid time off, each year. There are so many benefits attached to these PTOs. To employees, they feel that they are entitled use PTO as adults, at their own will, with no restrictions. Employees are also realizing that paid time offs come with certain flexibility. Employees appreciate this flexibility and tend to be more loyal to their organizations as they feel that they are

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