Paid Time Off (PTO) Policies

PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the Argosy University online library and your textbooks to read about PTO policies. Now, let us go back to Company A and Company B from Module 1.

While reviewing the information from the two merged companies, the HR Director has found out that each company has two different PTO policies.

Company A has a PTO system in which employees are given 30 days of paid time off each year, which accumulates at the rate of 2.5 days a month. Under this policy, vacation and sick leave are all rolled into one paid leave and any absence whether scheduled, such as vacation, or unscheduled, such as sick leave, are taken from the accumulated leave the employee has earned.

Company B has a more traditional leave system in which employees are given 12 days of vacation, 10 days of sick leave and 10 holidays. The company is closed on those holidays. Vacation is accumulated at a day per month. Sick leave has an unlimited accumulation, but unlike vacation would not be paid out upon termination of employment.

Since the employees of the merged company will be working side by side, the HR Director has asked you to review the situation and make recommendations for a solution.

Instructions:

As an HR Director prepare a report addressing the following issues:

• Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
• Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
• Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for new employees.
• Make a recommendation for one common PTO system. Explain your system and why you think this system is the best system for the company.

Include two to three scholarly references in your response.

Write a five-to-seven-page memo to the company’s Chief Executive Officer (CEO). Apply APA standards to citation of sources.

Use the following file naming convention: LastnameFirstInitial_M2_A2.doc. By the due date assigned, deliver your assignment to the Submissions Area.

Assignment 2 Grading Criteria  Maximum Points    Identified information that is relevant and logical for recommending a PTO solution, and provided clear and rational ideas for where the information would likely be found.  16    Discussed relevant issues that could likely be encountered upon merging the PTO system with the traditional leave system. Supported the explanation of difficult issues by sound reasoning and evidence from scholarly resources.  24    Assessed various challenges that would logically emerge from having two separate PTO systems in one company; provided a thorough analysis of which system would be assigned for new employees.  16    Recommendation for the system that would be most beneficial to the newly merged organization is clear, specific, and based on scholarly research and industry best practices.  32    Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. 12   Total:  100