Understanding Flexible Time Off (FTO)

Every employee is familiar with traditional Paid Time Off (PTO), however, a 2023 Pew Research Center survey found that almost half of American workers don’t use all of their paid time off. An alternative approach to the basic PTO form is FTO, also known as Flexible Time Off.

Flexible Time Off is a form of PTO that does not have a designated number of hours allotted for leave, meaning employees don’t have to wait to accrue it. Employees also do not have to worry about “using it or losing it.” While employees still need manager approval for the time off, employees can use it however they would like (mental health day, sickness, vacation, etc.).

Benefits of FTO

• Increases Employee Satisfaction: Time can be managed based on their personal needs.
• Promotes Mutual Trust Within an Organization: Employees are entrusted to use time off responsibly.
• Saves on Cost: FTO does not need to be paid out upon termination.
• Flexibility of Use: FTO can be used for sick, vacation, or personal days
• Encourages Use: FTO does not role into the next calendar year.

Implementing FTO

FTO is something that can be tailored to a company and its culture. An FTO policy would be clearly defined in a company’s handbook, along with the application of it. While this option may not be a fit for all organizations, it can be a viable option for some.

 

 

This information does not constitute legal advice.