Why cap paid time off rollover?How to respond to the offer of working extra hours to compensate for a trip, instead of getting originally-requested time off?What approach can be used to negotiate for higher PTO/salary, when I have a better offer in hand?How to approach situation where my workplace has me marked as exempt when I should be nonexempt?How do you reconcile a slightly lower salary with a lot of time off?Why would company (decision makers) wait for someone to retire, rather than lay them off, when their role is no longer needed?
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Why cap paid time off rollover?
How to respond to the offer of working extra hours to compensate for a trip, instead of getting originally-requested time off?What approach can be used to negotiate for higher PTO/salary, when I have a better offer in hand?How to approach situation where my workplace has me marked as exempt when I should be nonexempt?How do you reconcile a slightly lower salary with a lot of time off?Why would company (decision makers) wait for someone to retire, rather than lay them off, when their role is no longer needed?
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Every place I have worked has capped the amount of paid time off employees are allowed to roll over to a new calendar year. In many cases it's a "use it or lose it" scenario, where accrued time is lost if the employee is over the cap.
One year, the company I worked for significantly reduced the amount of rollover allowed, in order to "prevent employees from disappearing for large amounts of time while we have important projects running", but this had the exact opposite effect. My project lead literally disappeared for 5 and a half months so he would not lose any of his accrued time.
The next thought is future liabilities. Maybe they are worried about having cash to pay someone out when they leave the company or retire, but, simple accounting should be able to manage that by pre-paying into a fund each year and only pulling money out when someone uses paid time off. The idea being if they had the cash to pay it on 31 December, then they still have the cash to pay it on 01 January. It could even be an interest-bearing account to avoid inflation issues. This makes the "we may not have the cash available if you store up too much paid time off" argument rather thin.
The next thing I can think of is maybe they are truly looking for a good work/life balance and want to make sure their employees get time off. That's kind and all, but if there are employees who would rather work a lot now and take a lump sum when they retire, I think that's a valid scenario for employees who really thrive on that sort of thing.
Tax reasons possibly?
This leaves the last thing I can think of: maybe this is just the way it's always been, and no one has really thought to question it. But that seems rather simplistic.
So to get to the question, why would employers in the USA cap paid time off accrual?
Answers such as "that's the HR policy" are not super helpful, as I'm trying to get to why such a policy exists.
human-resources time-off
asked 10 mins ago
kmortkmort
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Every place I have worked has capped the amount of paid time off employees are allowed to roll over to a new calendar year. In many cases it's a "use it or lose it" scenario, where accrued time is lost if the employee is over the cap.
One year, the company I worked for significantly reduced the amount of rollover allowed, in order to "prevent employees from disappearing for large amounts of time while we have important projects running", but this had the exact opposite effect. My project lead literally disappeared for 5 and a half months so he would not lose any of his accrued time.
The next thought is future liabilities. Maybe they are worried about having cash to pay someone out when they leave the company or retire, but, simple accounting should be able to manage that by pre-paying into a fund each year and only pulling money out when someone uses paid time off. The idea being if they had the cash to pay it on 31 December, then they still have the cash to pay it on 01 January. It could even be an interest-bearing account to avoid inflation issues. This makes the "we may not have the cash available if you store up too much paid time off" argument rather thin.
The next thing I can think of is maybe they are truly looking for a good work/life balance and want to make sure their employees get time off. That's kind and all, but if there are employees who would rather work a lot now and take a lump sum when they retire, I think that's a valid scenario for employees who really thrive on that sort of thing.
Tax reasons possibly?
This leaves the last thing I can think of: maybe this is just the way it's always been, and no one has really thought to question it. But that seems rather simplistic.
So to get to the question, why would employers in the USA cap paid time off accrual?
Answers such as "that's the HR policy" are not super helpful, as I'm trying to get to why such a policy exists.
human-resources time-off
asked 10 mins ago
kmortkmort
1012 bronze badges
New contributor
kmort is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
Every place I have worked has capped the amount of paid time off employees are allowed to roll over to a new calendar year. In many cases it's a "use it or lose it" scenario, where accrued time is lost if the employee is over the cap.
One year, the company I worked for significantly reduced the amount of rollover allowed, in order to "prevent employees from disappearing for large amounts of time while we have important projects running", but this had the exact opposite effect. My project lead literally disappeared for 5 and a half months so he would not lose any of his accrued time.
The next thought is future liabilities. Maybe they are worried about having cash to pay someone out when they leave the company or retire, but, simple accounting should be able to manage that by pre-paying into a fund each year and only pulling money out when someone uses paid time off. The idea being if they had the cash to pay it on 31 December, then they still have the cash to pay it on 01 January. It could even be an interest-bearing account to avoid inflation issues. This makes the "we may not have the cash available if you store up too much paid time off" argument rather thin.
The next thing I can think of is maybe they are truly looking for a good work/life balance and want to make sure their employees get time off. That's kind and all, but if there are employees who would rather work a lot now and take a lump sum when they retire, I think that's a valid scenario for employees who really thrive on that sort of thing.
Tax reasons possibly?
This leaves the last thing I can think of: maybe this is just the way it's always been, and no one has really thought to question it. But that seems rather simplistic.
So to get to the question, why would employers in the USA cap paid time off accrual?
Answers such as "that's the HR policy" are not super helpful, as I'm trying to get to why such a policy exists.
human-resources time-off
asked 10 mins ago
kmortkmort
1012 bronze badges
New contributor
kmort is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Every place I have worked has capped the amount of paid time off employees are allowed to roll over to a new calendar year. In many cases it's a "use it or lose it" scenario, where accrued time is lost if the employee is over the cap.
One year, the company I worked for significantly reduced the amount of rollover allowed, in order to "prevent employees from disappearing for large amounts of time while we have important projects running", but this had the exact opposite effect. My project lead literally disappeared for 5 and a half months so he would not lose any of his accrued time.
The next thought is future liabilities. Maybe they are worried about having cash to pay someone out when they leave the company or retire, but, simple accounting should be able to manage that by pre-paying into a fund each year and only pulling money out when someone uses paid time off. The idea being if they had the cash to pay it on 31 December, then they still have the cash to pay it on 01 January. It could even be an interest-bearing account to avoid inflation issues. This makes the "we may not have the cash available if you store up too much paid time off" argument rather thin.
The next thing I can think of is maybe they are truly looking for a good work/life balance and want to make sure their employees get time off. That's kind and all, but if there are employees who would rather work a lot now and take a lump sum when they retire, I think that's a valid scenario for employees who really thrive on that sort of thing.
Tax reasons possibly?
This leaves the last thing I can think of: maybe this is just the way it's always been, and no one has really thought to question it. But that seems rather simplistic.
So to get to the question, why would employers in the USA cap paid time off accrual?
Answers such as "that's the HR policy" are not super helpful, as I'm trying to get to why such a policy exists.
human-resources time-off
human-resources time-off
asked 10 mins ago
kmortkmort
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kmort is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 10 mins ago
kmortkmort
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Check out our Code of Conduct.
asked 10 mins ago
kmortkmort
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asked 10 mins ago
kmortkmort
1012 bronze badges
asked 10 mins ago
kmortkmort
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Multiple reasons you listed that makes it easy for this policy to be implemented but limited to no reason for it not to. Such is the way of the Nash equilibrium.
- Really not having cash available. Orgs need to budget for those things and if they do not have a top limit on how much they might need to pay off, they might run into issues. And some risk management philosophies dictate that might is a big no-no
- Some organizations want employees to really take at least some time off annually.
- Some other organizations want to handle long-term time-off through separate policies
- And yet some other organizations do it because that's what everyone else does.
So "that's the HR policy" is not a helpful answer but ultimately the only good one like a lot of other such things
answered just now
Victor SVictor S
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Multiple reasons you listed that makes it easy for this policy to be implemented but limited to no reason for it not to. Such is the way of the Nash equilibrium.
- Really not having cash available. Orgs need to budget for those things and if they do not have a top limit on how much they might need to pay off, they might run into issues. And some risk management philosophies dictate that might is a big no-no
- Some organizations want employees to really take at least some time off annually.
- Some other organizations want to handle long-term time-off through separate policies
- And yet some other organizations do it because that's what everyone else does.
So "that's the HR policy" is not a helpful answer but ultimately the only good one like a lot of other such things
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
add a comment |
Multiple reasons you listed that makes it easy for this policy to be implemented but limited to no reason for it not to. Such is the way of the Nash equilibrium.
- Really not having cash available. Orgs need to budget for those things and if they do not have a top limit on how much they might need to pay off, they might run into issues. And some risk management philosophies dictate that might is a big no-no
- Some organizations want employees to really take at least some time off annually.
- Some other organizations want to handle long-term time-off through separate policies
- And yet some other organizations do it because that's what everyone else does.
So "that's the HR policy" is not a helpful answer but ultimately the only good one like a lot of other such things
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
add a comment |
Multiple reasons you listed that makes it easy for this policy to be implemented but limited to no reason for it not to. Such is the way of the Nash equilibrium.
- Really not having cash available. Orgs need to budget for those things and if they do not have a top limit on how much they might need to pay off, they might run into issues. And some risk management philosophies dictate that might is a big no-no
- Some organizations want employees to really take at least some time off annually.
- Some other organizations want to handle long-term time-off through separate policies
- And yet some other organizations do it because that's what everyone else does.
So "that's the HR policy" is not a helpful answer but ultimately the only good one like a lot of other such things
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
Multiple reasons you listed that makes it easy for this policy to be implemented but limited to no reason for it not to. Such is the way of the Nash equilibrium.
- Really not having cash available. Orgs need to budget for those things and if they do not have a top limit on how much they might need to pay off, they might run into issues. And some risk management philosophies dictate that might is a big no-no
- Some organizations want employees to really take at least some time off annually.
- Some other organizations want to handle long-term time-off through separate policies
- And yet some other organizations do it because that's what everyone else does.
So "that's the HR policy" is not a helpful answer but ultimately the only good one like a lot of other such things
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
answered just now
Victor SVictor S
4,1261 gold badge8 silver badges32 bronze badges
4,1261 gold badge8 silver badges32 bronze badges
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