How To Effectively Craft a PTO Plan for the Upcoming Holiday Season

As the holiday season approaches, people across the country are starting to craft their plans for the holidays. If you run a business, you are no stranger to the rush of PTO requests in the final months of the year. If you want to keep your business running seamlessly and your employees happy, you must have a holiday plan.

"The holidays can be the most stressful time of the year for business leaders. Prepare yourself well in advance to avoid some of the stress," suggests Amanda Howland, Co-Founder of ElleVet Sciences.

If you are struggling to craft an effective PTO plan for the holiday season, look no further. We will go over some tips and tricks for navigating the holiday season with your employees.

How Does PTO Work?

PTO or paid time off is a benefit that most full-time employees have access to. The specifics of PTO work differently for every company. Your specific PTO policy should outline the specific parameters of how PTO works at your business, including how much time each individual gets and what requirements they may have to meet in order to take time.

"If you want to attract and retain top talent, you need a good PTO policy. If you don't, you'll lose your talent to a company that does," explains Max Ade, CEO of Pickleheads, a company that helps athletes find the best pickleball paddles.

Your PTO policy will outline the procedures and policies regarding employee time off. It should specify how much PTO each employee receives, how it is accrued, and when they can use it. PTO is typically used for vacations, personal days, bereavement, jury duty, or on voting days, and each type may have different regulations.

PTO vs. Sick Days

Some employers offer paid sick days in addition to PTO. For companies that do not offer sick days, employees must use PTO if they want to be paid for the time they are out sick. If your company does choose to provide sick days, they can't be used the same way that PTO is used.

"Businesses that offer both sick days and PTO are attractive to applicants, especially after the pandemic. People want to know that their workplace will take care of them if they are unable to come to work," says Maegan Griffin, Founder, CEO and nurse practitioner at Skin Pharm.

The main difference between sick days and PTO is that PTO can be used at the employee's discretion. Sick days, on the other hand, can only be used when the employee falls ill. Some employers require doctor's notes in these cases.

How Do PTO Policies Work?

A company's PTO policy outlines guidelines for an employer's PTO program. This may include information about how much PTO is offered, how long it lasts, and how it's distributed. Your policy should also include information about using PTO during the holidays.

"The week between Christmas and New Year's is the most popular week of the year to use PTO. If your business will resume operations right after December 25th, prepare to be short-staffed," says Andrew Mavis, CEO of 98Strong.

The holidays are a time when many people will want to use their PTO at once. Make sure you include information about how and when employees can take PTO during this time of year so there are no surprises when the requests start to roll in.

Accrual Policies

Most businesses offer PTO over a period of time. As the employee works throughout the year, they can build up more PTO. This may occur on a daily, weekly, or monthly basis. Some companies even stretch it out to a quarterly accrual structure.

"Your PTO accrual policies will play a role in how your employees use their PTO. Consider this when creating your policy," suggests Ryan Rottman, Co-Founder and CEO of OSDB.

Not all businesses use this structure, but many do, as it prevents people from using up all their PTO at the beginning of the year. However, it can also cause the issue of employees wanting to wait till the year's final months to use it all in one go.

Carryover Policies

Your PTO carryover policy is essential to determine when you structure your policy, as it will dictate how employees use their time off. If you allow employee PTO to expire at the end of each year, you may have all your staff trying to use PTO at once.

"A carryover policy for PTO can help employees determine how they want to use their PTO. If you don't have a carryover policy, prepare for employees to use up their PTO in the final days of the year," mentions Asker A Ahmed, Director of iProcess Global Research.

If you don't want your PTO to carry over but also want to avoid having everyone use PTO at once, establish a cash-out policy. A cash-out policy allows employees to redeem their PTO for money rather than time off before it expires.

Crafting a Plan

Once your PTO policies are in place and well-known amongst your staff, you need to devise a plan for the holiday season. You obviously can't have your entire team take time off at once, so figure out how you will handle a high volume of time-off requests.

"In all areas of business, you'll seldom reach success without a plan on how you're going to get there," says Natalia Morozova, Partner at Cohen, Tucker & Ades Immigration Law Firm. "This applies to your Q4 PTO schedule, too."

Start discussing holiday policies with your staff a few months in advance to avoid any surprises. People typically book flights and make plans at the beginning of the fall season, so start having discussions around that time.

Define Your Needs

First, determine what your needs are. How many staff do you need present to get you through the holiday season? How many can you afford to give time off at the same time? Use your answers to figure out what you are capable of offering.

"Make sure your employees know that the needs of the business come first when the holidays roll around. Unless you exclusively sell summer items like bikinis and pool floaties, this will be the busiest time of the year for you," says Kevin Miller, Founder of kevinmiller.com.

Once you've figured out what you need out of your employees, communicate that to them. Then, ask them what they need from you to make their holiday plans happen.

Be Transparent

If you know you'll have to deny time off requests, be transparent about it. Discuss what kinds of expectations your staff has and see if there are any ways you can work together to make their expectations a reality.

"Transparency is key in building good relationships with your employees. If you are open and honest upfront, they will be more likely to respect your decisions," advises Dr. Fred Melius MD, CEO of BioSpectrum Hemp.

Many employees complain about unfair PTO policies during the holiday season. To keep things fair, accept PTO requests on a first-come, first-serve basis rather than a need basis. Prioritizing parents or people who live out of town can get you in trouble with other employees. Give everyone an equal opportunity to have their request approved.

Use a Shared Calendar

Employing a shared calendar can be helpful when crafting a PTO strategy for the holidays. It will let your employees know which dates are already taken up by other employees' PTO. Update the calendar in real time so everyone stays on the same page.

"The key is aligning everybody so they all understand where you're going," says Eytan Lenko, CEO of Aussie company Outware.

You can also consider blacking out certain days when you cannot offer PTO. Shared calendars are the best way to stay transparent and consistent when employees are trying to use PTO.

Offer Remote Work Options

Consider offering remote work options if you can do so. This allows more people to stick to their holiday travel plans while still being able to work. The week between Christmas and New Year's Eve is the perfect time to offer remote work options to your staff.

"You have to embrace the world if you want to live in it now," points out Miuccia Prada, head designer at Prada.

Black Friday is another day you may want to offer remote work. Most people don't want to travel right after a major holiday. Allowing employees to stay with their loved ones without taking time off is ideal for all parties involved.

Crafting an Effective PTO Policy

Navigating the holidays as a business can be stressful, so you must plan ahead and have appropriate policies in place. You have to find the balance between approving PTO and keeping your business operations running as usual.

"If you want your business to run smoothly through the holiday season, come up with a plan and stick to it," suggests Dominique Zimmermann, CEO and Head Designer of Bombshell Sportswear.

If you are struggling to define a clear PTO policy for the holidays, stay transparent, offer remote work, and approve the requests you can. Follow these steps, and you are sure to have a successful holiday season.