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What is PTO tracking software and why do you need it?

What is PTO?

Paid time off (PTO) includes vacation, sick leave, holiday pay, and other forms of paid days off. When an employee works for a company that provides PTO as part of their benefits package, it’s important to track their usage and balances accurately.

Using our employee vacation tracking software is simple and intuitive by design. When an employee makes a PTO request, their manager gets instant alerts via email or mobile. Checking for calendar conflicts takes a few seconds and approving the request is even faster. The system notifies the employee and updates their balance automatically, so work can continue with minimal interruption.

Why should small businesses use PTO tracking software?

An accurate PTO balance is an essential part of attracting and retaining top talent. PTO tracking software demonstrates that you value your employee’s time off by allowing them to easily request additional time off. As a small business owner, there are many time constraints on your day-to-day activities so delegating this task can free up valuable time for you and the rest of your team to focus on growing your company.

How does PTO work?

There are two types of PTO usage: “unbounded” or “unlimited” days, which are calculated as hours worked, then used at some point during employment; and fixed number of paid days off with specific start date. Some companies choose to use both types of PTO within the same benefit policy.

PTO tracking software for unlimited and fixed number of paid days off scenarios. Each time an employee requests additional PTO, the manager receives notifications via email or mobile so they can approve or deny the request immediately. Approved requests are automatically reflected in the employee’s balance while denied requests are recorded with the date and reason provided by the manager.

Using our PTO tracking software is simple and intuitive by design, ensuring that your company meets compliance standards while maintaining accurate records of vacation balances. With real-time analytics available on our Dashboard, assigning managers to employees’ schedules becomes easier than ever before. Managers can quickly check for holiday conflicts, track utilization trends over time, and verify whether their team has enough coverage to ensure business continuity.

What is the difference between PTO tracking software and a time-off policy?

PTO tracking software provides managers with the tools they need to manage paid time off requests while also helping employees track their own balances more easily. While some companies choose to include unlimited PTO in their benefits package, most small businesses tend to use fixed number of days that are typically accrued during employment.

A policy outline what your team’s PTO balance is vs. what it can be; whereas our software shows you people’s actual usage vs. their set limit, etc. A policy allows for amendments, overages (more than allowed), or hopefully no changes at all; while our software tracks historical data about how many hours each person has worked, not just how many hours they have left in their PTO balance.

When does PTO tracking software make sense?

  • Allowing unlimited PTO vs. fixed number of days is a benefit decision that should be made based on your company size, industry, and applicable state laws within the state you do business in.
  • Tracking historical data about how many hours each person has worked vs. how many hours they have left in their PTO balance starts making more sense as a team grows larger and/or as employees average more than 5 years with an employer.

In Conclusion

Documenting PTO usage, balances, and sharing those details with managers throughout your company can go a long way to helping you attract top talent as well as retaining it by demonstrating that you value your employee’s time off by allowing them to easily request additional time off. Using PTO tracking software frees up valuable time for you and the rest of your team to focus on growing your company.

Alma Reed is an author and researcher dedicated to enhancing productivity. She is deeply interested in areas such as time management, increasing productivity, and fostering healthy routines. Through her writing, she aims to assist people in boosting their job performance and attaining an ideal balance between work and life.

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