How to Manage PTO for Remote Employees

Remote work has become part of the new normal for countless businesses. While this flexibility offers numerous benefits to employees, it also presents unique challenges for employers, particularly when it comes to managing Paid Time Off (PTO). But an understated aspect is that it can also affect employees, which in turn can affect a company's bottom line.

We'll take a closer look into PTO management for remote teams and look into best practices, policy development, and tools to help handle it. It's not about overseeing who's in or out. It's mostly about making sure the company can offer and implement a proper PTO policy for remote employees that helps them work better.

Understanding PTO Policies for Remote Employees

PTO, or Paid Time Off, represents an all-encompassing approach to employee leave. Unlike traditional systems that separate vacation, sick days, and personal days, PTO combines these allowances into a single, flexible bank of time. Employees can use this time as needed without specifying the reason for their absence.

Although the basic concept of PTO remains consistent, its execution may differ across traditional and remote work environments. When you’re in an office, it’s easy to see who’s there and who’s not. But for remote teams, a company might require a different way to keep track of it.

Knowing who's working and who's out doesn't only concern HR. Colleagues who wanted to carry out a project would be dismayed to realize, on Monday, that a key stakeholder who they never met is actually taking three weeks off. And a PTO policy should consider this potential risk.

How the Office Influences a PTO Policy or PTO Management

Traditionally, overseeing PTO was relatively straightforward when employees were physically present in an office. To begin with, HR departments could always manage a workforce's time off with an HRIS tool. That bit hasn't changed. But, in a small office, if someone was not there, then it could be assumed that the person had requested time off, and colleagues would likely know about their vacation in advance. Not to mention that the worker on PTO had the privilege of asking their manager for the time off in person, over a coffee, while finding the right moment for it.

But distributed and remote work fails to provide these clues or advantages. And even if HR is well-aware that a staff member is out, colleagues might not, and this will adversely affect productivity.

Key Components of a Time Off Policy for Remote Workers

A good PTO policy for remote workers doesn't differ that much from a classical PTO policy. An effective PTO policy for remote workers should clarify:

• PTO accrual
• PTO request process
• PTO tracking
• PTO carryover
• PTO blackout periods (optional)

The difference between in-person PTO and remote PTO is how it's carried out. These steps are a verbatim copy of a typical PTO policy. But, as you'll realize, it's not as easy to implement.

Developing a PTO Policy for Remote Employees

It's not easy to have a sound PTO policy for remote workers, but it's not impossible either. Let’s see all the different aspects that must be considered when coming up with a suitable and efficient time-off policy for remote workers.

Steps to Create an Effective Time Off Policy

It's really important to have a good PTO policy in place if you want to manage a remote workforce. Here's a comprehensive guide to putting one together:

1. Define PTO accrual: Clearly outline how employees accumulate PTO, whether through a fixed amount of time or an accrual system based on hours worked.
2. Establish a request process: Create a straightforward procedure for submitting time-off requests, including required notice periods and approval channels.
3. Implement PTO tracking: Apply a reliable system to keep track of PTO balances. Every employee should be able to know how many unused days they have left. And so should HR managers.
4. Determine PTO carryover: Specify how unused PTO is handled at the end of the year.
5. Identify blackout periods: If necessary, outline specific periods when time off is restricted due to business needs.

Considerations and Challenges for Remote Work PTO Policies

Remote work presents unique challenges for managing PTO. They mostly fall on the employee's side, but some might also come as a blow to productivity. Employees who are working remotely might find some limitations in addressing these issues:

• Fewer opportunities to talk openly about their time off: In an office, people might share their time-off plans while chatting by the water cooler. Remote workers can't do this, and teams might be struck by surprise to discover that a remote software engineer has already left for two weeks. Companies should find ways to deal with this.
• Fewer opportunities to speak with their managers: Remote work means people can often work in different time zones. A worker who wants to request time off might find it hard to find the time to chat about it with their manager.
• Fewer opportunities to show they can handle time off: Companies will want to show they believe in a remote team members’ commitment. But remote workers will have fewer possibility to show they have an ability to manage their time and workload. Also, almost no-one will be able to check if their work-life balance looks good or bad.

All of these challenges can be addressed with a time off policy that's backed up by a tech tool that pairs remote workers with office ones.

Examples of PTO Policies

Now, remote, in-person, or hybrid companies offer different approaches to Paid Time Off (PTO), each with its own advantages and drawbacks. Here are the main types:

• Accrued PTO: Employees earn PTO over time, often based on hours worked or length of service. This strategy rewards loyalty and dedication.
• PTO Bank: Employees receive a set number of PTO days upfront, which can be used throughout the year. Some companies allow unused PTO to carry over, while others may have expiration dates or cash-out options.
• Unlimited PTO: This policy of unlimited paid time off offers the highest flexibility. Still, it requires clear expectations and responsible use to prevent potential issues.

Implementing PTO Tracking for Remote Employees

Tracking PTO accurately helps keep staffing levels in check and prevent disputes.  If you don't have a reliable system, your PTO balances can be inaccurate, which can cause confusion and needless problems. Also, as you'll soon realize, a good PTO tracking system will help address most of the challenges that crop up from having remote workers.

Tools and Software for PTO Tracking

Numerous tools and software solutions can streamline PTO tracking for remote teams. These platforms often offer features like:

• Centralized PTO balance view: Employees can easily check their available PTO time. So can HR teams.
• One-click time-off request submission and approval: These tools include a digital process for your remote worker to request time off and your HR team to approve it. So you don't have to force an employee to stand by the water cooler and have an awkward conversation.
• Calendar integration: These tools have a visual representation of team availability. PTO reminders go straight to your inbox, and time zone localization shows if your remote teams are working. So, colleagues won't depend on an empty office chair to figure out if someone is working or on vacation.
• Accrual formulas: These tools assist with an automatic calculation of PTO based on employment history or other conditions.
• Mobile accessibility: A good tool has a mobile interface and allows employees to submit requests and check balances on the go.

TalentHR’s time-off management feature allows you to do all of this, among automating other tasks like people performance analysis, hiring, and onboarding. Consider factors like cost, features, ease of use, and integration capabilities when selecting a tool.

If using a time-off management tool for office workers was already advantageous, using it to address the shortcomings of a remote-worker PTO policy makes it twice as powerful.

Addressing Absenteeism in Remote Work

Absenteeism in a remote work context refers to any unplanned or unapproved absence from work duties. Unlike traditional office settings where physical presence is easily established, tracking it with remote workers requires companies to define what “absenteeism” even means for remote workers.

Creating an Absenteeism Policy for Remote Workers

A well-defined absenteeism policy is very important for preventing expensive surprises. It'll also help remote workers achieve a healthy work-life balance. It should mention the acceptable reasons for absence, give employees a way to notify about their absences, and specify what attendance or absenteeism means. Many companies might not care about their workers sitting on the ergonomic chairs for 8 hours straight.

Strategies for Monitoring and Managing Absenteeism for Remote Workers

Monitoring remote absenteeism is a bit contrived. There are plenty of solutions with which employers can systematically track and monitor their employees, even if they're four timezones away. But these are (rightfully) frowned upon and constantly bypassed—ask the mouse-jiggling industry about it. Not to mention, there are all sorts of privacy concerns when monitoring what your remote worker is doing.

Companies that want to monitor and manage absenteeism for remote workers should first focus on performance. The best way to measure performance is with an HR tool that gathers people analytics.

Best Practices for PTO Management in Remote Teams

Certain policies can work to raise employee morale and directly impact performance. For example, flexible work options that accommodate employees' needs and personal time might reduce stress-related time off. Good PTO practices are also effective at that. These are some of the best practices for PTO management in remote teams:

Encourage Remote Employees to Take Time Off

Managers should demonstrate the importance of taking time off by regularly using their PTO. With unlimited vacation days, which are increasingly common but still many employees don't capitalize upon, managers should underline how the unlimited PTO policy will work out because there are clear communication channels set up. If anyone goes, everyone else will know it in advance.

Communicate PTO Policies Clearly to Remote Workers

Remote workers might struggle with an information gap that office workers can solve with a quick question. That's why companies should provide user-friendly access. They should make PTO policies readily available to employees, perhaps through a dedicated section on the company website—and, of course, with a time-off management system to easily request PTO.

Review and Update your Policies Regularly

Since you'll be lacking the first-person impression of how a remote worker is faring, continually try to gather metrics about how the PTO policy is helping them so you can always review and update the policies.

PTO for Remote Employees is Better When Self-Served

To wrap things up, managing Paid Time Off (PTO) for remote employees is all about clear policies, good communication, and giving them an easy path to requesting it. Self-management and self-service will help them tremendously.

Implementing time-off management tools as the one offered by TalentHR can be a game-changer for companies that are struggling with remote-worker productivity—and for employees who'd love to take time off but don't want to write an awkward, ill-timed email to their remote manager.

Register now for free.