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How to Determine Your PTO Policy Consider these four factors when deciding what your policy is for paid-time-off.

By John Patrick Pullen

This story appears in the March 2015 issue of Entrepreneur. Subscribe »


The average American worker got 15 paid days off in 2014, one day more than in 2013, according to Expedia's annual "Vacation Deprivation Study." But those days weren't all fun in the sun.

The Society for Human Research Management (SHRM) reports that while 98 percent of businesses provide some form of paid vacation to full-time employees, 58 percent of those surveyed offer paid-time-off (PTO) plans, which bundle sick days, vacation time and personal days, vs. the 40 percent that have stand-alone paid vacation plans.

"Ten years ago, those numbers probably would have been flipped," says Bruce Elliott, a compensation and benefits manager at SHRM. "The majority of employers just throw it all into one bucket."

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