Cases and Problems

Chapter Case

PTO: Too Little or Too Much?

You just finished analyzing information for the current compensation and benefits program. You find that some changes should be made, as the majority of employees (you have 120 employees) are not happy with what is being offered. In fact, the plan had not been revised in over fifteen years, making it dated and definitely ready for some changes.

One of the major points of contention is the PTO the organization offers. Employees feel the current system of sick time and vacation time offers too few options. For example, one employee says, "I often come to work sick, so I can still have my vacation time for my vacation". Another employee says, "I have given nine years to this organization, but I receive only three days more than someone who has just started". Here is the current PTO offering:

1+ year 7 days
5+years 10 days
10+ years 14 days

  1. What cost considerations would you take into account when revising this part of your compensation plan?
  2. What other considerations would you take into account when developing a new PTO plan?
  3. Propose a new plan and estimate the cost of your plan on an Excel spreadsheet. Be prepared to present to the board of directors.