When designing a competitive and comprehensive total rewards plan, it is important to consider the value of paid time-off benefits to employees and the cost to your organization.

Results from a 2009 Culpepper Benefits Survey on paid time-off programs reveals that some companies have curtailed their paid time-off benefits in response to the economic downturn. However, most companies have protected their paid time-off benefits to help retain high-performing employees and key talent.

Key Findings

• Approximately two-thirds of companies use a traditional paid time-off model
  with days allocated to specific categories (e.g., holiday, vacation, sick, personal).
• Nearly one-third of companies use a PTO bank model with a pool of paid time-off days.
• 17% of companies allow employees to cash out unused vacation and PTO days.
• 19% of companies implemented a furlough and/or reduction-in-hours
  within the last twelve months.
• 15% of companies are planning or considering a furlough and/or reduction-in-hours
  within the next six to twelve months.

Types of Paid Time-Off Models Used
Most paid time-off benefit plans in the U.S. fit into two categories (Figure 1):

Approximately one percent of participants reported a flexible paid time-off model that allows employees to take paid vacation, sick, and personal time on an “as needed basis” without specifying a specific number of days.

* Regardless of the type of paid time-off model, many companies have separate polices for the following types of time not worked: family/medical leave, short-term disability, jury duty, testifying in court as a witness, military leave and reserve duty, sabbaticals, and voting. Legal statutes in some states require companies to pay employees for jury duty, testifying in court as a witness, and voting.

Traditional Paid Time-Off Models
Traditional paid-time off models typically take one of two forms:

1. Traditional Paid Time-Off Model with a specified number of sick & personal days
   About four-out-of-five companies define a specific number of paid sick and personal days that may be taken each year (Table 1).

2. Traditional Paid Time-Off Model without a specified number of sick & personal days
   Approximately one-fifth of companies do not define a specific number of paid sick and personal days that may be taken each year (Table 1). Instead, most of these companies describe having flexible sick and personal leave policies that allow employees to take paid sick and/or personal time-off off on an as needed basis.

• Free to participants in 2009 Paid Time-Off Practices & Policies Survey

• Free to subscribers of Culpepper Benefits Survey Package
  (includes Culpepper Library and Small Company Plus subscribers)

• $295 for non-participants and non-subscribers (Order Form)

Data Source: Culpepper Benefits Survey of 182 organizations.
Survey Dates: April 13 through June 9, 2009

Breakdown by Sector:
Technology 60%, Life Sciences 14%, Other 26%

Participant Breakdown by Number of Employees:
Up to 100: 30%, 101 to  500: 29%, 501 to 2,500: 25%, Over 2,500: 15%

Participant Breakdown by Ownership/Corporate Status:
Public 32%, Private 58%, Non-Profit 6%, Government 2%

Participant Breakdown by Country:
United States 98%, Canada 2%