Harrisburg, PA – March 26, 2019 – Conrad Siegel, delivering comprehensive employee benefits and investment advisory services, has announced the findings from its Paid Time Off (PTO) Benefits Survey. The survey reports and analyzes paid leave trends across Central Pa.
The survey reveals that a majority of local paid leave benefits are on track with national trends found by the International Foundation of Employer Benefit Plans. In both areas, paid vacation is the most popular form of leave and more than half of employers offer employees the option to roll over a portion of their unused days. However, local organizations differ from national employers on paid parental leave; on average, fewer local companies offer paid parental leave and less paid time off for maternity and paternity leave.
“With rising competition for talent and a push from employees for greater flexibility in the workplace, more employers are reviewing their paid time off policies,” said Rob Glus, Partner & Consulting Actuary with Conrad Siegel. “In today’s competitive environment, where other costs continue to rise, strong paid leave policies are an excellent way to attract and retain top talent.”
Paid Vacation Is Most Popular Leave Structure, Followed by PTO
According to Conrad Siegel’s survey, paid vacation is the most popular leave structure, though more employers at the local and national level are starting to explore a more inclusive approach with a combined, all-in-one PTO package. According to Conrad Siegel’s findings, 63 percent of local companies offer paid vacation, while 30 percent offer PTO and 7 percent offer neither.
Paid Leave Ranges from 5-30 Days
Based on survey results, paid leave offered ranges from 5 to 30 days, increasing by tenure. First year employees are offered an average of eight vacation days, with sick and personal days counted separately. The average number of PTO days offered to a first-year employee is 15 days. Survey data shows that this lines up with the nationwide average, with first-year employees typically receiving 15-19 days of PTO.
After 10 years of service, employees receive an average of 17 vacation days, compared to an average of 23 PTO days. At the national level, employees with 10 years of service are typically granted between 21 and 29 days of PTO.
For employees with 20 years of service, the average paid vacation time is 21 days, while the average PTO time is 27 days. Comparably, nationwide, employees with 20 years of service typically receive between 25 and 30 days of PTO.
Rolling Over Is More Popular than Cashing Out
For employees who choose not to take all their leave in a given year, many employers offer other options to derive value from those days. Rolling over is the most popular option, though some employers also offer the option to cash out now or to cash out in retirement.
The survey reveals that 70 percent of local employers allow workers to roll over some vacation, typically capped at five days, into the next year, while 46 percent allow employees to cash out the days. Most companies take a similar approach to sick days, with 81 percent allowing employees to roll over sick days, while only 21 percent allow cashing out and 23 percent allow cashing out at retirement. Just 31 percent allow rolling over personal days and typically limit this to two days. Of the companies who offer PTO, 89 percent allow some days to roll over and 53 percent allow employees to cash out some days.
Local Companies Lag Behind National on Paid Parental Leave
National numbers reveal that 58 percent of U.S. companies offer paid parental leave, with 60 percent of those offering full pay. Maternity leave trends higher than paternity leave, with 21.7 percent offering 12 weeks for maternity leave and 28.3 percent of companies offering two weeks for paternity leave.
Comparatively, 5 percent of local companies offer paid parental leave to new-parent employees. Time and pay ranges from three days to six weeks at 85 percent of pay, though the most common option is two weeks at 100 percent of pay.
The survey was conducted in July 2018 and reflects responses from over 120 organizations of all sizes and across multiple industries in central Pennsylvania.
Conrad Siegel is committed to a results-oriented, data-driven approach to benefits as a part of employee compensation. For more information about Conrad Siegel’s health and benefit services, please visit https://conradsiegel.com/healthcare/.
About Conrad Siegel
Conrad Siegel is an employee benefit and investment advisory firm headquartered in Harrisburg, Pa. that provides customized retirement, healthcare benefit and investment planning solutions for businesses and individuals. The firm offers independent, fee-based services backed by careful attention to detail. Its investment advisers are independent of any financial institution and do not receive commissions, positioning them to make recommendations in their clients’ best interests. Conrad Siegel partners with its clients to serve as a comprehensive source for all employee benefit and investment advisory needs. For more information, please visit https://www.conradsiegel.com/.
Investment Advisory Disclosure
All investment advisory services and fiduciary services are provided through Conrad Siegel Investment Advisors, Inc. (“CSIA”), a fee-for-service investment adviser registered with the U.S. Securities and Exchange Commission which operates in a fiduciary capacity for its clients. Registration of an investment adviser does not imply any level of skill or training. Investing in securities involves the potential for gains and the risk of loss and past performance may not be indicative of future results. CSIA and its representatives are in compliance with the current notice filing registration requirements imposed upon investment advisers by those states in which CSIA maintains clients. CSIA may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by CSIA with a prospective client shall be conducted by a representative that is either registered or qualified for an exemption or exclusion from registration in the state that the client resides.
Abel Communications for Conrad Siegel
Phone: (443) 961-2643