What is VTO?

Voluntary time off, or VTO, is an unpaid leave that empowers employees to take time off without any negative impact on their employment. This offering can be a beneficial tool for employers to manage staffing requirements, such as when there's an unexpected surplus of staff for the amount of work needed. Employees appreciate this benefit as it allows them to balance the demands of their personal lives without jeopardizing their employment status. Voluntary time off is distinct from paid time off (PTO) as it is unpaid. Therefore, employees typically need to balance their VTO with forms of paid leave, such as vacation and sick leave.

Voluntary time off allows employees to take unpaid leave without affecting their employment, helping employers manage staffing needs and employees balance work and personal obligations.

Another form of leave time that is gaining popularity, also known by the VTO acronym, is volunteer time off. This benefit that some companies offer is not just about giving employees time to volunteer or do charity work. It's about fostering a culture of giving back, a factor that younger generations look for in employers. These VTO policies can significantly boost employee engagement and loyalty. They also help companies achieve larger organizational goals related to corporate social responsibility and establish themselves as a social-forward brand.

Volunteer time off lets employees take paid leave to volunteer, promoting a company culture and brand image of giving back.

When employees can take time away from work voluntarily, at their discretion, and without negative repercussions to their job status, it can increase employee satisfaction and reduce turnover. Likewise, employees can get paid for a typical workday while giving back to a cause close to their heart. This may create more company loyalty and increased productivity upon their return. However, both kinds of VTO policies come with their challenges. 

For example, a voluntary time off policy can be challenging because too many staff attempts to take it at once can lead to staffing shortages or inconsistencies. With volunteer time off, maintaining productive schedules can also be challenging when allowing employees to take sporadic paid volunteer time away from work. It's important for small businesses to be aware of these challenges and plan strategies to mitigate them.

Voluntary time off and volunteer time off can increase employee satisfaction and loyalty, but implementing these policies may pose challenges such as potential staffing shortages, additional administrative burdens, and scheduling inconsistencies.

Here are a few best practices that small businesses can follow to successfully implement VTO policies. First, establish who is responsible for approving time off requests and create standards for things like how many employees can take time off at once and how much notice they should give to get a VTO request granted. Then, clearly communicate the benefit to employees, defining the parameters of the policy so that employees are well-informed and know what to expect. 

Similar to volunteer time off, you'll need to define who is responsible for running the program. Additionally, consider things like how many days a year companies can get volunteer time off, which causes (if any) are off limits, and how to prove that employees do the volunteering they say they do. 

To successfully implement VTO policies, small businesses should establish program standards, clearly define who is in charge, and communicate relevant expectations and restrictions to employees.