Template: Updated PTO Policy Employee Communication
A PTO audit is an essential part of ongoing HR compliance. Clearly communicating updates to time-off policies is an important part of that process. Use the following template to deliver vacation policy updates to your employees.
How to Communicate a PTO Policy Change to Employees
PTO policies require regular review for companies to remain competitive, compliant, and financially solvent. How you communicate an update to an existing time-off policy is especially important to maintain employee morale and engagement. Transparency can go a long way in this messaging.
Include the following information in your communication:
- Explain the Reason for the Audit: Employees may be frustrated with the change (i.e. “losing” their accrued PTO), but they’ll appreciate the transparency when updates are made.
- Detail the Updates: Between capping rollover amounts and switching completely to an unlimited model, HR should include exactly what’s changed and why.
- How the Policy Impacts Hourly vs. Salaried Workers: Depending on the policy, changes may affect one group of workers and not the other. Any communication from HR should be specific to limit confusion.
- Display the Policy: PTO is there for employees to use, so they should be able to access the policy at any time. This provides even more transparency between HR and employees.
- Start Date: Whether immediate or down-the-road, employees need to know when to expect changes to take place.
- Anticipated FAQs: HR should stay ahead of the curve with pre-generated responses to expected questions that employees may ask when the policy is announced.
Template: Employee PTO Policy Update Communication
Use the following template when communicating an update to your company’s PTO policy:
I’m reaching out today regarding an update to [Company]’s PTO policy. HR audited the team’s time-off benefits and updated the plan with a new policy that will help keep our organization financially healthy—now and in the future.
With this in mind, beginning [date], we’ll implement the following changes to our PTO policy:
- PTO will be available to exempt and non-exempt employees
- Employees receive their allotted PTO at the beginning of the calendar year
- All PTO requests and approvals will be tracked using [system]
- PTO allotments are as follows:
- 0-5 years of service – [days] PTO days each year for exempt employees; [days] PTO days each year for nonexempt employees
- 6-10 years of service – [days] PTO days each year for exempt employees; [days] PTO days each year for nonexempt employees
- 10+ years of service – [days] PTO days each year for exempt employees; [days] PTO days each year for nonexempt employees
- PTO requests may not be approved during [quarter], which is our busiest time of the year; we encourage employees to work with their managers to identify appropriate periods for time-off during this time
- Employees may roll over up to five days of unused PTO from one year to another; any unused PTO exceeding five days is forfeited at the beginning of the new calendar year
[Company] expects some employees may have questions about the new policy. HR produced a set of anticipated FAQs—available here [link]—that should address any concerns you may have.
If you have any additional questions about the PTO policy, please contact [contact information].
Thank you as always for your commitment to our team.
With the launch of Amazon Pharmacy, the digital retail giant looks to shake up yet...
This open enrollment season, employees might have new questions on their minds as they...
As part of its ongoing cost-of-living adjustments, the IRS announced in early November...