The High Costs of Inefficiently Tracking PTO/Paid Time Off – More Expensive Than You Think
PTO/paid time off is the single most common employee benefit offered by companies today, with over ninety percent of mid-sized to large companies offering some form of PTO/paid time off. While offering PTO/paid time off is a great way to keep your employees happy, the truth is that most companies have archaic and ineffective measures in place to track PTO/paid time off. Currently, estimates say that nearly every worker will take at least three PTO/paid time off days that aren't tracked by their employer. While that seems like a small matter, the costs of paying employees for days that they shouldn't be paid for can add up quickly. There are serious costs that come with inefficiently tracking PTO/paid time off, and it's important to understand them.
Larger companies can lose as much as three hundred thousand dollars annually due to nothing more than poorly tracked PTO/paid time off, and in many cases they'll never realize that the loss is happening. While a mid-sized or smaller company probably won't suffer quite as large a loss, PTO/paid time off abuse is still a problem in every company. Whether it's sick day abuse or vacation time violations, if your employees manage to take advantage of PTO/paid time off that they aren't really owed, your company can feel the effects in its bank account.
The main cause of PTO/paid time off isn't employees looking to scam the system – it's simply human error. Your HR department and managers, the two sets of people who are usually responsible for managing the forms and information related to PTO/paid time off, are usually swamped with work. PTO/paid time off issues are low priority issues for them, and often times by the end of the day filing an employee's PTO/paid time off is simply forgotten. The next day arrives with the employee returning to work, and any PTO/paid time off issues are out of everyone's minds.
With such high costs, your company can't afford to ignore PTO/paid time off errors any longer. Start by addressing the issue of inefficient PTO/paid time off tracking with those responsible for managing it. Set stricter guidelines in place to ensure that your workers begin to manage PTO/paid time off, and help them understand just how costly a seemingly minor issue like poor PTO/paid time off tracking really is. Once you've explained the costs and what you expect from them, they may be more attentive to the issue.
To really make PTO/paid time off tracking easier, you need to implement a PTO/paid time off software system that is easy to use and effective. Good PTO/paid time off programs will be tied in to human resource software and payroll, so generally a few mouse clicks will be all that you need to file and manage all PTO/paid time off needs. The software solutions from Unicorn HRO can manage everything from workers hours to PTO/paid time off tracking, and can do so effectively and efficiently. If you're tired of losing money to ineffective tracking, investing in a new software system is the first step you need to take towards solving the problem.