In Corporate America, paid leave is diminishing rapidly. Here's why more sick, personal, and vacation time actually helps your company.
It used to be two weeks of vacation time, accrued sick time (averaging five to ten sick days a year), and 10 bank holidays allotted as paid leave for each employee. Maybe there were a few personal days thrown in, and the possibility to earn more vacation time as major milestones of employment are passed, such as promotions or duration with the company.
Lately it’s two weeks of Paid Time Off (PTO) for any reason, and a few bank holidays. If you’re lucky.
No law exists in the United States requiring paid sick or vacation leave. Because of this, certain companies, particularly those with hourly or shift-workers, don’t offer any type of paid leave whatsoever. In fact, only 51% of US employees are offered any kind of paid sick leave.
This is bad for employees and companies alike. The recent Family and Medical Leave Act requires certain employers to allow workers up to 12 weeks of unpaid leave, but this is not enough. Blue-collar or shift workers are least likely to be awarded sick leave and can’t afford the hit on their income. And for small private companies, no such time is required. Employees who face a crisis of health or family are forced to quit. The company faces a higher turnover rate and the cost of replacing employees, as well as time lost with employees who work sick, while infecting other workers.
Interestingly enough, US companies offer paid vacation time to roughly 76% of workers. This is because they offer the time as Paid Time Off, meaning employees can use the time for vacation or illness.
The biggest problem with the PTO arrangement is that the paid leave is seen by employees largely as vacation time. They come to work sick and avoid scheduling time away from work for things like doctor appointments. Doing so will eat into the time they get to take a vacation. Who wants to miss a vacation this year because they were unlucky enough to come down with the flu? As a result, more workers are coming to work sick, spreading viruses, and lowering productivity in general.
The second problem is that it invites abuse of the system. Employees no longer have to justify time away from work, so those who would not normally take sick leave don’t have qualms with missing work.
Other countries have laws requiring minimum paid leave from work. Canada gives workers 10 mandatory days off. Germany, Italy, and the UK require 20. In Sweden it’s 25, and France and Spain both mandate a whopping 30 days off every year.
Legislation toward mandatory sick days has died in congress in the US, largely because lobbyists from big corporations oppose the idea. Paying employees for time away from work will cost money.
This is true. But it’s a small price to pay for greater employee satisfaction. There is something to be said for allowing employees time to relax, heal, and have fun. Just because the law doesn’t state that it’s illegal to treat people like drones and punish them financially for not being robots who never need time off for the dentist, doesn’t mean that it’s okay.
