Lost Vacation Days: Evidence-Based Policy

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Table of Contents

HR Consultant
Importance of a Policy
Applicable Laws
Policy Statement
Risks and Challenges
Implementation
Conclusion
References

Companies adopt powerful policies to dictate their relationships with different stakeholders, including suppliers, customers, and workers. Such regulations can make it possible for organizational leaders to solve conflicts that have the potential to disorient performance. This discussion uses a case, “Lost Vacation Days” to explain how organizational leaders and human resources (HR) managers should handle issues that might affect employees’ performance and expectations.

HR Consultant

Being an HR consultant to Gulf Port Ships, Inc., I would begin by examining how this company can improve its situation. I would go further to identify both salaried and hourly workers and inform them that the corporation is planning to implement a superior model for rewarding, compensating, and addressing their issues. This means that the organization will consider the need for a new policy for time off (Urbancová & Šnýdrová, 2017).

I will also inform them that the current stalemate will be resolved amicably. This will be something critical to ensure that the targeted employees continue to support this company’s business objectives. I will also inform the company’s senior leaders about the importance of fairness and responsiveness whenever dealing with employees. I will encourage them to consider a better time off policy, improve their relationship with employees, and collaborate with the HR department to address an emerging issue.

Importance of a Policy

All employees expect their companies to treat them with dignity and address the major issues they might face. The question of time off is critical for these individuals and can either empower or discourage workers from supporting the business model of their respective firms. This means that there is a need for all corporations to have policies outlining procedures for time off. An evidence-based plan will ensure that employees have a clear understanding of events, situations, and occurrences that will affect their working hours and the kind of compensation expected. With such a policy in place, all employees will find it easier to plan for their duties and goals in life (Adler & Ghiselli, 2014).

When the plan is transparent and fair, every worker will remain empowered to develop the most appropriate work-life balance. Employees will be aware when a time off is necessary and the amount of compensation expected. Such a plan will minimize most of the challenges that might arise between workers and their employers.

Applicable Laws

Discrimination is a major problem that many workers face in their respective organizations. This challenge is also evident when employees fail to work due to various reasons. The American government supported the implementation of the Fair Labor Standards Act (FLSA) to regulate any form of injustice in the workplace regarding the question of time off. Under this law, employers do not have to pay workers for periods or days not worked.

The purpose of this Act was to ensure that all companies met the unique needs of their workers without discrimination (Adler & Ghiselli, 2014). The Civil Rights Act of 1964 (Title VII) managed to propose several areas and actions plans that companies were required to take seriously and minimize cases of unfairness in a wide range of areas, including the right to paid leave.

Policy Statement

The current situation requires a new policy statement that can transform the situation and make the company more successful. The proposed plan is aimed at streamlining the issues many employees continue to face while at the same time increasing the level of transparency (Urbancová & Šnýdrová, 2017). The proposed policy that the organization can include in its Employee Handbook is presented below.

Scope

This policy applies to both salaried and hourly employees.

Key Elements

This policy statement is informed by the existing labor laws. Employees working fulltime will receive 18 days minimum annual leave. This paid time off (PTO) can be accrued and used the following year. Additionally, workers who have been with the company for 1-5 years will have an additional day. Those with 5-10 will get two more days. Those who have worked for this company for over 10 years will earn 3 more days for leave.

People working hourly do not qualify for annual leaves. However, any time off arising from full or partial shutdown of the shipyard due to unpredictable events will not be charged off to vacation.
The policy goes further to indicate that 50 percent of the time lost by permanent workers after a complete shutdown of the shipyard for various reasons will be charged off to their vacation banks.
Employees are entitled to paid time offs under these circumstances in accordance with the existing regulations:

Sickness.
Maternity.
Paternity.
Other valid reasons.

Unpaid Leave

This kind of leave is available to workers who might have exhausted their PTO under special circumstances. However, these should not include cases of maternity or sick leaves.

Table 1: Proposed policy statement.

Risks and Challenges

The recommended policy can make a significant difference for Gulf Port Ships since it can resolve the current stalemate affecting its workers. However, some challenges and risks are predictable if the company implements the proposed plan. The first one is that the company stands a chance to record reduced profits whenever there is a shutdown. This is true since it will still have to cater for the expenses accrued without deducting the workers.

Another potential challenge is that some people might decide to challenge the policy at the very beginning. This is true since some individuals might be unhappy with the proposed 50 percent vocation deduction. Another risk is that the company might continue to record reduced outcomes while at the same time having to pay workers for time not worked for (Jones, 2017). However, with a proper implementation plan and a change model, this company will eventually achieve its outcomes.

Implementation

A powerful strategy is essential to execute this policy. The best model should follow Kurt Lewin’s model whereby workers will be prepared for the new plan, receive adequate training or guidance, and eventually present it. The individuals will be informed about the benefits of the introduced policy. Workers will also learn that new changes will be proposed when inputs from different stakeholders are considered (Urbancová & Šnýdrová, 2017). The final stage is to make the plan part of the company’s TPO policy. The use of a different model or the absence of one is something that will ensure that the policy is not implemented effectively.

Conclusion

The existence of an evidence-based policy for time off can empower employees and minimize disagreements that can disorient organizational performance. The proposed plan is capable of empowering more workers since the company will resolve most of the issues revolving around the lost vacation time amicably. The policy also creates room for new improvements depending on the changing needs of different employees and partners. These insights will eventually make the company more competitive and successful.

References

Adler, H., & Ghiselli, R. (2014). The importance of compensation and benefits on university students’ perceptions of organizations as potential employers. Journal of Management and Strategy, 6(1), 1-9. Web.
Jones, K. (2017). The most desirable employee benefits. Harvard Business Review. Web.
Urbancová, H., & Šnýdrová, M. (2017). Remuneration and employee benefits in organizations in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(40), 357-368. Web.

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