Sick Leave Policy Trends by Company Size and Industry

When considering implementing a new sick leave policy for small business, or reviewing your current policy, you’ll want to consider several questions:

In today’s competitive talent market, it’s vital that businesses carefully consider every aspect of the total compensation package that they can offer to attract and retain suitable employees. Furthermore, it’s important for businesses to understand the complexity and nuance of local laws and policies. For instance, in New York City, there are city-specific policies which differ from other major metros. Paypro’s dedicated team is uniquely qualified to understand local laws and deliver expert considerations to their clients. Needless to say, a comprehensive and law-abiding paid sick leave policy is an increasingly important part of today’s employee benefits packages.

Sick Leave Policy Data

The Bureau of Labor Statistics, using data from the National Compensation Survey, indicates that the number of paid sick leave days varies by length of service and establishment size

The Trend Toward Paid Time Off (PTO), Rather Than “Sick Leave”

When an employee isn’t sick, but needs a day off for a personal reason, having to “call in sick” means the employee must compromise his or her integrity. The terms “sick leave” or “sick days” are falling out of favor, as they are rather narrow in scope.

According to the Society for Human Resource Management (SHRM), the number of employers switching to a “paid time off” (PTO) model is increasing. The PTO model does not differentiate between vacation time and sick days. SHRM, using data collected from consulting firm Mercer’s annual Survey on Absence and Disability Management, showed an increase in PTO to 63% of employers polled, up from only 38% five years earlier.

Some of the issues surrounding sick leave that have contributed to its diminishing popularity in favor of PTO include:

Ever-Evolving Sick Leave Laws

Despite the trend away from sick leave, we may see the trend towards PTO slowing or even coming to a halt due to changing state and local laws that require employers to provide specific amounts of paid sick leave. The laws vary considerably by region throughout the U.S., and this is causing difficulty for many employers, making the administration of PTO programs and sick leave policy for small business more complicated.

There are differences in the laws pertaining to paid sick leave from state to state, regarding which employees are covered, permitted uses, accrual rates, and waiting periods. To complicate the issue further, some local jurisdictions’ laws differ from state laws, making it more challenging to develop a sick leave policy for small business.

Employee Leave Management

Whatever type of sick leave policy you have in place at your company—or if you do not yet have a set sick leave policy for small business—Paypro can help. Our leave management solutions can be fully customized to suit your business’s unique needs. We offer simplified employee time tracking, along with a range of other workforce management services to help you manage your business more efficiently. Contact us today to set up a consultation.

About The Author

Kayla is the Marketing Manager at Paypro Corporation overseeing all inbound and outbound marketing and sales efforts. She has 7+ years of experience working within the B2B and SaaS based solutions space and thrives on creating messaging and campaigns that introduce products and services to those who need them most.