A tool designed to determine the pace at which an employee accumulates paid time off (PTO). This calculation factors in variables like hours worked, tenure within a company, and established company policy to provide an accurate projection of available time off. For example, an employee working full-time might accrue a specific number of PTO hours for every bi-weekly pay period, based on a pre-determined accrual schedule.
The importance of accurately determining the rate at which employees gain paid leave is multifaceted. It ensures transparency and clarity in compensation packages, contributing to improved employee morale and satisfaction. Furthermore, this determination helps organizations effectively manage their workforce planning, enabling them to forecast staffing needs and budget appropriately for employee absences. Historically, the calculation process was often manual and prone to error, making automated tools valuable for accuracy and efficiency.
