Executive Compensation Rewards Proposals: Paid Time Off

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Executive Compensation Rewards Proposals
Paid Time Off
What is the benefit?
Paid time off, or what is normally known as PTO, is a benefit program whereby employees are allowed to take days off while still getting paid. One crucial distinguishing factor about paid time off entails the fact that employees are allowed to take time off for personal reasons. For example, an employee would be allowed to take time off to take a vacation or simply rest after an intense week. In the U.S., though the law requires that all workers be given up to 12 weeks of unpaid vacation, there is no legal requirement for employers to offer employees paid time off (Department of Labor, 2022). As per the law, PTOs are subject to the agreement made between employers and employees. Therefore, employers reserve the right to dictate terms and, in some situations, restrict the use of PTOs.
What will offering the benefit do for the company?
The advantage of offering the benefit lies in having a fully committed and highly productive workforce. PTOs are crucial in helping employees maintain a healthy balance between their personal lives and careers. When employers take a transactional approach while dealing with their employees, the chances are high that employees will feel neglected. Further, the chances are high that work-related stress will increase, which greatly impacts employee performance and job satisfaction levels (Ajayi, 2018). Therefore, the company benefits by having a highly trained and talented executive who maintain high productivity levels and commitment to the company.
Does the competition offer this type of benefit?
Numerous companies offer PTOs, including the competition. Companies have discovered that their greatest asset is their workforce. Therefore, they are striving to find ways to keep their employees happy. The competition is always looking for ways to earn a competitive advantage, and they have already implemented PTOs. However, as indicated above, PTOs are subject to the agreement made between employers and employees. Therefore, we can revamp ours and make it more alluring to the executive.
What will the cost of the benefit be to the organization?
The organization is likely to incur certain costs after adopting PTO. First, there is the challenge of reduced productivity whenever an executive is on leave. Secondly, there is the challenge of having to deal with two or more executives seeking PTOs at the same time. Third, there is the challenge of cost and the amount of money to be paid even when employees are not working. So, there needs to be careful consideration before introducing PTOs.
Implementation suggestions/concerns
One implementation suggestion to consider would be to restrict PTOs. For example, instead of saying the organization will offer 10 PTOs, the company can start by offering employees 4 or 5. Secondly, as a pilot project, the company can consider paying half the salaries for every PTO taken instead of the full salary. While this is not ideal, it does show that the company is making changes, and the cost is likely to be less than $5000/year.
Will any of the executive compensation rewards be tied to performance goals?
It is also crucial to tie PTOs to performance goals. However, this should be done or introduced with wisdom. For example, there should be a minimum number of PTOs that every executive is entitled to. However, for the ones who happen to attain and even surpass expectations with regard to their performance goals, their PTO days should be more.
Are there any legal or ethical concerns with offering this benefit?
Nationally, there is no legal requirement for PTOs. However, employers in 13 states and Washington DC are expected to pay their employees whenever they take paid sick leaves (NCSL, 2022). So, in such states, an employer can be sued. Regarding ethics, failure to adopt PTO as a strategy is likely to encourage unethical behavior from employees. For example, the chances are high that employees will lie more and therefore have more unpaid time off. In the end, productivity is still reduced.
Paid Parental Leave
What is the benefit?
The benefit is paid parental leave. Under the benefit, parents would be eligible for paid leave after the birth or adoption of a child in a year. Currently, the US legislation under the 1993 Family and Medical Leave Act (FMLA) allows going on parental leave after the adoption or birth of a child. FMLA allows parents 12 weeks of unpaid leave per year (Rossin-Slater & Stearns, 2020).. Under the paid parental leave benefit, talented executives in Berry Sweets would be eligible for payment within the first four weeks of adoption or birth of a child. The remaining eight weeks will remain unpaid as per the FMLA.
What will offering the benefit do for the company?
Providing paid parental leave will improve morale among Berry Sweets' executives. Because of the high morale, productivity will be high. High productivity will increase the outcome of the organization. Additionally, the benefit will assist the business in retaining and attracting top talent. Retaining employees means low turnover, reducing recruitment costs for the business. Attracting top talent will make the company more competitive in the market.
Does the competition offer this type of benefit?
The competitors are no...