5 Reasons to Automate PTO Accruals

Paid time off (PTO) can be a point of frustration for everyone at your company. Managers often bear the brunt of the load, having to review and approve requests, manage schedules, and calculate coverage. When these efforts are done manually, the workload increases significantly, and errors are more likely to happen.

Employees can also get frustrated with manual PTO accruals, especially if they have to wait for weeks to get an answer. When they’re ready to book vacations or schedule appointments, they need to know quickly whether they are approved for the time off. Automating PTO is a must, regardless of business size. Review some of the reasons to automate PTO accruals and how doing so can benefit your organization.

All About PTO Accruals

PTO accrual refers to the process of earning paid time off over time. Many employers choose to issue a certain number of hours at each pay period rather than providing a lump sum upfront. Accumulating PTO is typically based on factors like length of service or hours worked during a pay period, although the employer is responsible for establishing the terms of the policy.

There are no legal requirements for employers to provide PTO for personal reasons, but a growing number of states require the provision of paid sick leave. Unpaid long-term sick leave is available under the Family Medical Leave Act (FMLA) on a federal level, but it doesn’t allow for employees who are under the weather and need time away from work to recover. We detail which states require paid sick leave in our HR Resource Center, and every state has its own accrual and hour regulations.

Some states also require employers to pay out any unused PTO to an employee who leaves the company. Efficient tracking is vital to maintaining compliance with such a law, as well as ensuring a positive experience for every member of the team when they want to take time off. Whether the laws in your state require the provision of paid sick leave or you are looking to simplify PTO, automation is your key to success.

PTO Automation: A Brief Guide

PTO automation involves setting decision-making criteria around paid time off requests. This criterion aligns with company policy and ensures that departmental needs are met before issuing approval. Rather than having to wait for a manager to physically review and sign off on the PTO request, an employee can receive an instant response. Approved requests can also immediately flow to the scheduling and accruals modules and employee timecard.

Key Benefits of Automating PTO

Ever-changing legislation and a renewed focus on the employee experience have encouraged employers to look for a simpler, more efficient way to manage PTO accruals. With the right tools in place, PTO doesn’t have to cause headaches. In fact, it can become a streamlined process with everyone involved feeling confident and happy.

Eliminates the waiting game

As mentioned, automation allows company leaders to set up automatic approvals and denials based on specific criteria. An employee no longer has to wait for days or even weeks to get an answer. They can find out right away if their request was approved and start planning that epic vacation. Everyone wins!

Decreases errors

Mistakes happen, but they’re a lot more likely when you’re using manual processes to calculate and track paid time off. When a mistake happens and an employee gets scheduled to work when they are approved to take time off, your managers end up scrambling and everyone suffers. Protect your company and team by implementing automated PTO accruals, and say goodbye to these frustrations before they happen.

Reduces the risk of discrimination and bias

Managers rarely set out to treat their employees unfairly. But quick judgments and errors can happen, and those situations can create frustrations among teams. If one employee’s time-off requests are constantly getting denied, while another’s go through every time, it’s going to create some problems. Your company may even face accusations of bias, discrimination, or favoritism, none of which will create a positive atmosphere.

A consistent time-off request process ensures everyone has the same experience. Automation also takes the human out of the equation. Criteria for taking PTO applies to everyone uniformly.

Provides access to data in real time

When an employee submits a request for time off through WorkforceHub, the approval or denial happens quickly based on company policies and established criteria. An approved request flows through the system, showing up in scheduling and time and labor. Managers don’t have to worry about accidentally scheduling an employee to work during their approved time off, as the system will indicate that they aren’t available.

Employees can also view their PTO balances, helping them to make informed decisions and feel empowered to utilize this benefit. Automation benefits everyone on the team.

Provides a better employee experience

When employees are happy they are more likely to stay on and contribute positively to company initiatives. High employee morale is also linked to increased productivity and a better experience. Providing a streamlined and simplified way to use PTO allows employees to achieve a greater work-life balance and enjoy a positive experience in the workplace.

Simplify PTO Accruals with WorkforceHub

WorkforceHub is a powerful time and scheduling platform that’s built for businesses with hourly and shift-based workers. PTO automation is easier than ever with accruals functionality that is simple to set up and use. Your company can track and manage PTO requests and balances more efficiently, ensuring an accurate and streamlined experience for everyone. Take it for a test drive today, and say goodbye to the hassle of managing PTO.