IN THIS ISSUE:

1. Feature Story: Reduce Unscheduled Absences By Converting To A PTO Bank

2. Cathie's Corner: Open Enrollment: Let The Confusion Begin

3. Handling Volatile And Potentially Violent Situations

4. Free Reports: State Law Updates

5. HR Soapbox: Do Desperate Times Call For Desperate Measures? 

AHI's We Couldn't Make This Up

Taste testing candy. Now that sounds like the perfect job! Unless you are one of three taste testers for Cadbury PLC who claimed they were seriously injured while sampling the sweet treats. The employees alleged that a high-intensity sweetener caused chemical burns to their mouths. They sued the candymaker, charging that it hindered their treatment by failing to disclose the sweetener's ingredients to a dentist in a timely manner.

1. FEATURE STORY:
REDUCE UNSCHEDULED ABSENCES BY CONVERTING TO A PTO BANK

If you are looking for a way to reduce unscheduled absences, the answer is converting from a traditional time off (TTO) program, which deducts sick, personal, and vacation time from distinct banks, to a paid time off (PTO) system, which combines leave into one bank, found the Alexander Hamilton Institute (AHI) in its 2008 annual Survey Of Traditional Time Off And PTO Program Practices.

Some TTO users disclosed that the reason that they haven't converted to a PTO program is because they feared even more employees would call out without first scheduling the time off. Those fears appear unfounded, since more than two-thirds (69%) of PTO users reported that, on average, an employee missed four workdays or fewer due to unscheduled absences each year versus only 57% of TTO users.

Forty-four percent of PTO users also indicated that the number of unscheduled absences dropped by more than 11% after converting to a PTO program. Switching to a PTO system also caused a quarter of respondents to experience a decrease in the number of employees requesting to take unpaid time off or to borrow unearned time. Overall, 80% of PTO respondents praised the system for meeting their expectations; 16% lauded it for exceeding expectations.

With results like these, it's no wonder that almost half (49%) of TTO users are considering a switch to a PTO system. Of those, only 15% plan to make the switch within a year, though. Most are still exploring (35%) or undecided (25%).

For those organizations contemplating making the switch, here are some basic questions that need to be fleshed out in order for the program to succeed.

• What types of absences (e.g., illness, vacation, holidays) will be included in your PTO bank? How many days will be available, and how will that number be determined? Look at the financial impact to determine what level of benefits can be given without negatively affecting your bottom line.
  
  
• Will there be differences in the amount of time provided based on job level, seniority, or other factors?
  
  
• How will you convert employees' currently accrued paid time off? Will vacation, sick, and personal time all be converted to PTO time day for day? Or will sick leave, for example, be treated differently, such as only converting 50% of currently accrued sick time to PTO?
  
  
• Will your PTO bank replace all forms of absence pay, or will you also provide more traditional leave policies for absences that are generally not anticipated, such as funeral leave or jury duty? Look at competitors to see whether their PTO benefits are more or less generous.
  
  
• What happens to leave that is unused at the end of the year? Will part or all be carried over to the next year, and/or will you pay employees for their unused time?
  
  
• What happens when employees terminate their employment with accrued time remaining in the bank? How is this affected by circumstances surrounding their resignation or dismissal? Wage payment upon resignation or dismissal is usually regulated by the state in which employees work. To ensure your program complies with state law, AHI's 2008 Survey Of Traditional Time Off And PTO Program Practices contains each state's wage payment upon termination law, along with other relevant state laws that may impact the design on your program.
  
  
• How will a PTO bank impact your payroll system?
  
  
• How much notice will an employee have to give in order to take leave? Are there certain periods of the year when leave will not be granted?

2. CATHIE'S CORNER:
OPEN ENROLLMENT: LET THE CONFUSION BEGIN

I wrote last month about getting ready for open enrollment. It started on November 10th, and some of my predictions have already come true....Continue the story.

3. HANDLING VOLATILE AND POTENTIALLY VIOLENT SITUATIONS

Before you marvel at how happy your workforce is based on the fact that nary an employee comes to HR's or their manager's door to complain about something, consider this....Continue the story.

4. FREE REPORTS: STATE LAW UPDATES 

Check out AHI's recently updated state-by-state Free Reports. Find the latest workplace smoking regulations in "Clearing The Air On Workplace Smoking Laws." And get the full scoop on whether you need to pay departing employees for accrued but unused vacation pay upon termination in "State Laws On Final Pay: What And When To Pay Terminating Employees."

5. HR SOAPBOX: DO DESPERATE TIMES CALL FOR DESPERATE MEASURES?

With a tight job market, some job seekers are doing whatever it takes to set themselves apart from the applicant pack. One in 10 hiring managers claim that they are seeing more job candidates trying unusual antics to capture their attention this year than in previous years, according to a Careerbuilder.com survey....Continue the story.