How To Manage PTO Requests

September 27, 2023

Paid Time Off is an important benefit for employees and job seekers. If a generous PTO program helps you attract talent, you need to make sure employees can actually use it once they are hired. A confusing PTO process, or a culture that discourages vacations can lower morale and contribute to burnout. This decreases productivity, drives turnover and makes your company less desirable to job seekers

 

The Principles of PTO Management

 

How do world-class companies manage time off requests? Number one, they have a transparent, equitable policy and communicate it to their workforce. Number two, they make it easy for employees to monitor their accruals and request PTO. Number three, they train their managers to approve requests where possible, treat everyone fairly, and refrain from contacting their team members when off work. Number four, leadership and managers set a good example by taking vacations and encouraging all employees to do the same.

 

The Benefits of Automated PTO

 

An automated PTO system is essential for managing leave effectively. They are most powerful when integrated with employee timekeeping and scheduling. 

 

How Does a PTO System Work?

 

·        Employees can see available PTO in the timekeeping system–including amount available for any future date

·        Employees submit a request in their timekeeping portal–just like an email but easier

·        Managers receive requests in the system

o   All requests are in the same place

o   Schedulers can easily review requests in light of shift schedules

o   Each request is time stamped

·        Approved PTO is automatically registered in the timekeeping system

·        The software updates pending or approved accruals in real time

·        Employees can check their balance on a mobile device 24/7, including forecasted balance for any future date

 

Benefits for the Employee

 

PTO systems provide a transparent, standardized procedure which makes it easier for employees to plan for and use time off. A cloud-based system allows employees to plan vacations at their convenience outside of work hours. With 24/7 online employee self-service, they can do it all without the hassle, delays and risk of paper-based processes.

 

Accommodate All Personality Types

 

Not everyone is comfortable asking their manager for time off in a face-to-face conversation. An automated system makes it easy for less-assertive employees to ask for time off. A PTO system with a mobile app lets employees request time off from the comfort and familiarity of their smartphone. Mobile-friendly access creates an intuitive, employee-centric work culture.

 

Ensure PTO Doesn’t Trigger Payroll Errors

 

An automated system also ensures that PTO use doesn’t cause payroll errors. Companies with paycheck problems can expect frustrated employees to look for work elsewhere.

 

Build a PTO Workflow

 

When creating a paid leave process, consider the following:

 

1.     Define the method employees use to request leave: email, paper form, or automated system

2.     Determine whether unused PTO will roll over into the new year or ‘use it or lose it’

3.     How managers will handle overlapping requests

4.     How far in advance employees need to submit requests

5.     Blackout periods when nobody can take time off

 

Let the System Do the Calculating

 

With automated PTO tracking, you don’t need to waste time calculating PTO balances for future vacation requests. Instead, balances calculate in real time as employees build a time off request. Employees and managers can rest assured that time off requested is available. Balance calculations include accrual method and rate, PTO already used and pending time off already approved.

 

Keep Your Business Running

 

Innovative small businesses use an automated PTO system integrated with timekeeping, scheduling and payroll. This creates efficiencies managers and employees expect while contributing to a positive work culture.

 

·        See clearly how time off impacts shifts

·        Alerts make managers aware of each pending request in shift context and who else is on leave

·        No more short staffing or missing skill sets due to lack of PTO visibility

·        Approved PTO instantly appears on schedules, whether published or still being built.

·        Schedulers have all the information needed to adjust schedules for full shift coverage while employees use leave

·        Timecards reflect PTO, ensuring accurate payroll processing

 

Effective PTO management improves productivity and engagement while lowering turnover.



THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

 

Developing Team Core Values: The Foundation for a Thriving Business

By kim • June 10, 2025
Every successful business—from scrappy startups to established enterprises—shares one common denominator: a clear set of core values that guide how the team works together, solves problems, and interacts with customers. Core values aren’t just motivational posters on the break room wall; they shape day-to-day decisions, strengthen culture, and drive long-term success. For entrepreneurs who want to build a resilient, cohesive team, defining and instilling meaningful values is non-negotiable. In this post, we’ll walk through why core values matter, how to develop them with your team, and practical steps to ensure those values become lived behaviors that power growth.

How to Lead a Team to Success: A Guide for Business Leaders

By kim • June 10, 2025
Leadership is as much an art as it is a science. In today’s competitive business environment, guiding a team to success requires intentionality, adaptability, and a keen understanding of both people and processes. Whether you’re a seasoned executive or stepping into a managerial role for the first time, the principles below will help you build, motivate, and sustain a high-performing team—while ensuring your organization’s financial health stays on track.

3 Signs It’s Time to Outsource Your Payroll

By kim • May 3, 2025
 Payroll is one of those business tasks that seems simple—until it’s not. Between compliance rules, employee classifications, taxes, and deadlines, managing payroll can be a significant burden for small business owners. At Business Financials Inc., we specialize in providing stress-free payroll solutions that keep your business compliant and your employees happy. Here are three signs it might be time to outsource your payroll: 1. You’re Spending Too Much Time on Payroll If you're spending hours every week calculating hours, managing tax withholdings, or cutting checks, that’s time you could be spending on strategy, sales, or customer service. Our team can handle it all—from direct deposits to tax filings—so you can focus on growing your business. 2. You’re Worried About Compliance Payroll laws are constantly changing, and non-compliance can lead to hefty fines. We stay up to date on state and federal regulations so you don’t have to. From ACA reporting to W-2 processing, we’ve got it covered. 3. You’re Expanding Your Team More employees means more paperwork, tax responsibilities, and scheduling complexity. Our scalable payroll services grow with your business and include employee self-service portals for accessing pay stubs, tax forms, and more. Let Business Financials Inc. Handle the Heavy Lifting Our goal is to make payroll painless. Whether you have two employees or two hundred, we’ll build a solution that fits your business. THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.