This is a guest blog post written by our partners at PTO Exchange.
During the holiday season, giving can come in many forms: volunteering your time, giving a monetary donation, or donating physical items. But there is another way you can give—donating your unused PTO to colleagues who have fallen on hard times. With PTO Exchange, your organization can donate your unused PTO to a Grant Circle to provide financial relief to your employees when they need it the most.
Employee financial wellness is more important than ever
With sky-high inflation, “financial wellness” is the buzzword of 2022 in the HR space. About 63 percent of Americans live paycheck to paycheck—even those earning more than $100,000 per year. Consumers cannot keep up with the pace of inflation, and neither are their wages. Employees are strapped for cash and expect employers to help.
According to a new survey from TalentLMS, 78 percent of employees desire financial wellness support from their employers to offset some of the impact on their wages over the past few years. Additionally, the looming recession has made 7 in 10 employees concerned about their financial wellness. However, companies that do provide financial wellness support see higher employee retention and job satisfaction—68 percent of employees are more willing to stay at a job while 83 percent of employees feel more satisfied with their jobs.
Companies can use this as an opportunity to become financial heroes for their employees. Employers can offer several financial wellness offerings, such as financial planning training, emergency relief funds, and leave-sharing programs to help employees in times of financial hardships. While employers might be inclined to reduce financial wellness benefits in light of a looming recession, we argue that they should expand them to attract and retain employees.
By offering financial wellness support, you are showing your employees that they are more than just a number and that you care about their overall well-being. Additionally, you create a culture of giving at your organization and empower your employees with confidence and dignity so they don’t feel ashamed when they fall upon hard times.
Employees need more PTO to cover them in emergencies
When unexpected financial hardships, medical emergencies, and natural disasters strike, individuals and families are faced with instability due to insufficient funds to cover such events. This can affect one’s security and stability for years to come—we’ve already seen this with the COVID-19 pandemic.
In a crisis, employees need not only financial support but time. They need time off to be with loved ones, recover, or rebuild. And for many who have exhausted their paid time off (PTO) or are close to doing so, taking time off isn’t an option for them, causing further stress on themselves and their families.
PTO is a financial asset for employees. When accrued or given in a lumpsum, PTO has a value associated with it as decided upon by employers. And, if you don’t use all of your time off within the calendar year, you could lose it if your employer has a “use it or lose it” policy in place. The number of PTO days an employee has can drastically fluctuate; some use all of their PTO during a given year, while others have barely dipped into their allowance. Each year, 55% of Americans don’t use all of their PTO, resulting in millions of unused days that go to waste.
HR leaders are looking beyond traditional benefits and thinking outside the box to encourage employees to use their PTO and provide a community-wide safety net, a buffer for employees in case they need it. Time is one of the greatest gifts an employer can give their employees, and most companies have an abundance of it—billions of dollars’ worth, in fact. One employee’s unused PTO can be treasured by another.
So why not encourage employees to donate their unused PTO days to colleagues who need it?
Donate unused PTO to employees in need through an emergency relief fund set up through a Grant Circle
Through Canary and PTO Exchange, your company can set up an emergency relief fund via a Grant Circle that allows employees to donate unused PTO to help their coworkers. It’s a unique benefit that gives employers an easy way to build a financial safety net through a leave-sharing program that expands the donor pool and sustainability of the funds. It offers more options for employee giving and helps amplify existing support efforts.
But how does it work? Employees select the PTO hours they want to contribute, PTO Exchange calculates the monetary value, and the money is donated to the company’s Grant Circle. The employee’s PTO balance is automatically updated, the donation is reflected in the next payroll, and the pool of emergency funds for their coworkers grows. This offers a win-win for employers and employees: PTO get used, and employees get the assistance and support they desire from their employers in times of need.
Providing this type of support offers several benefits for HR leaders and organizations looking to improve their financial wellness offerings for their employees:
- Attract and retain employees by showing you care about their well-being
- Help your employees regain financial stability by giving them the time to take care of themselves
- Respond to the rapidly evolving needs of your employees by offering a more flexible offering that addresses multiple generations in the workforce
- Strengthen company culture by establishing a culture of giving and encouraging meaningful connections with colleagues
- Increase employee engagement by giving your people a sense of purpose, helping them feel supported, and letting them know they are making a difference
Help colleagues in need this holiday season
Most, if not all of us, have experienced some sort of financial hardship and have had to rely on the support of others to get through it. Together, PTO Exchange and Canary can help your organization leverage its balance of unused PTO while creating a culture of giving within your organization. Learn more about how you can put your unused PTO to good use this holiday season with Canary and PTO Exchange.
PTO Exchange is the first benefits platform that allows employees to self-direct the value of their unused paid time off (PTO) for personal needs and causes. Employees can self-direct the value of their unused PTO toward options that are meaningful to them personally, such as life planning (retirement funds), education (student loans), philanthropy (offering days to a co-worker or nonprofits), and more. PTO Exchange helps companies increase employee engagement, staff retention and loyalty while reducing balance sheet liabilities and reinforcing a positive culture. PTO Exchange is SOC 2-certified and trusted by STRATACACHE, Howard Brown Health, UCare, Centre College, Griffin Capital, 4 Wall Entertainment, and others. Learn more at ptoexchange.com.
You can watch Canary Founder and CEO Rachel Schneider’s recent interview with PTO Exchange’s David Sherman as a part of PTO Exchange’s monthly Partner Profile Spotlight.
