Are you a new small business owner who is trying to find the best way to put together a benefits package — including paid time off — for your very first employee? PTO benefits vary widely, and as you may have noticed, some packages include more helpful items than others. 

Failing to convey these policies can result in confusion, frustration, and in the worst-case scenario, you may end up with a lawsuit on your hands. Before you get yourself into a situation in which you and your employee are both confused, review the following four considerations as you decide on your new PTO package.

1. Make Policies Explicitly Clear

Your first point of action should be putting everything you’ve decided into writing. Rules and regulations surrounding your company’s PTO policy should be clearly outlined in a document available to all employees. Be open to answering pertinent questions, and don’t be afraid to revise the text if your employees seem to find it confusing. According to Globe Newswire, you should ask yourself if the PTO policy will include parental leave or whether you will cover this type of leave separately.

If you have multiple policy documents, you can use this PDF merge tool to combine them. This will make things easier for both you and your employees — you’ll each only have to worry about referencing one document when you have HR policy questions.

2. Be Flexible, but Ensure PTO Days Are Requested in Advance

If you’ve opted to let your employees pick their PTO days, make it clear that they need to request this time off in advance. You don’t want to end up short-staffed if five of your employees suddenly decide not to show up to work because of a misunderstanding. Ideally, you should have your employees sign a high-quality, professional-looking document that signifies their understanding of your policies. That being said, try to be as flexible as possible regarding PTO — schedule flexibility is an excellent way to retain employees.

3. Account for Part-Time Employees

If you’re considering adding part-time employees and contract workers to your roster, consider how the PTO package will affect them. Do you want to give any PTO days to your part-time employees? Depending on your state’s laws, you may not have to offer any benefits to part-time employees — but if you want to retain them, you probably should provide some. Paid personal days and vacation time will likely be valued by your employees more than you realize, and this perk could help you attract and retain more talented individuals.

4. Ask a Professional for Help Devising a PTO Plan

If you’re a first-time business owner, you may have an idea of what you want to offer your employees, but you might not know exactly how to put it into practice. Business Benefits Group suggests considering hiring a benefits consultant to help you formulate a great PTO benefits package for your new employees. You can find freelance business consultants on online job platforms. Only choose to contact someone after you’ve weighed the cost, time of delivery, and online reviews they’ve already garnered.

Show Your Appreciation Through Generous Benefits

Policies for PTO are often simpler on paper than they are in practice, and you should expect a few minor misunderstandings even with the clearest policies in the beginning. When you communicate with your employees and give them generous, flexible benefits that apply to their personal lives as well as their work, you are sending the message that you value them as important members of your company.

The St. Matthews Chamber of Commerce has exclusive resources, partnerships, and events available to help our members grow their local companies. Join us today!