Account
Get our app
Account Sign up Sign in

Compensation and time off

Offer the best salary and benefits packages to your employees.

Documents

Manage compensation and time off FAQs

  • How do you determine a fair salary range?

    To attract the best talent, you need to offer a competitive salary. The first step to determining a fair salary is by composing a job description. Using the job description, you can research similar job offerings and titles. You can start your research by visiting the Bureau of Labor Statistics website. Look for maximum and minimum salaries and adjust them to your area if needed. You may also need to adjust salary based on market competition. In addition, determine what benefits will be offered with the position.

    When you determine the rate to advertise, budget yourself a bit of room for the right candidate if needed. If you cannot afford the going rate, look for other options, such as working with a contract or freelance worker. Some candidates may also be willing to work for less if you offer flexible hours, work-from-home options or unlimited time-off.

    Do I have to list salary in the job description?

    No, you do not. You can say something like, "position pays a competitive wage" or similar. Regardless of whether you post the salary range, you'll still need to budget and decide on negotiating points if necessary. Also, be prepared to discuss raise options, in vague terms, in case you are asked.

  • What are paid-time-off (PTO) banks?

    PTO banking is becoming increasingly popular. Rather than offering sick-time and PTO, the days are banked into simply PTO. This negates the need for employees to "call in sick" when they really just need a day off. It also means HR doesn't need to track "doctor's notes" or proof of illness for time off.

    Things to consider before offering PTO banking:

    • Whether state laws require a certain amount of sick time.
    • If you employ those who require a large percentage of sick time.
    • Whether you'll implement "black-out days" where scheduling time-off will be restricted
    • If you are okay with paying remaining PTO when an employee leaves the company.
    • How much total time you will offer including holidays.
  • What is unlimited PTO? What are the benefits of offering unlimited time-off?

    Unlimited PTO is just as it sounds, it is unlimited paid time-off. Many companies, especially tech companies, now offer unlimited PTO. Despite what you may think at first, companies are finding that the policy is abused less than they first imagined. In fact, some employees even take less time off than they did before. Some use the time for extended vacations and other use the time to help improve work/life balance by allowing them to attend their children's school events. It forces companies to focus more on production rather than time-in-the-seat. Unlimited PTO doesn't necessarily mean unlimited, unscheduled time off nor does it mean that employees don't have to do their job.

    Advantages of offering unlimited PTO:

    • Allows employees time to better manage their lives outside of work.
    • Encourages production rather than clock-watching.
    • Attracts talent looking for flexible benefit packages.
    • It allows people to better manage their health care needs.
    • Employees feel that their employer respects their personal needs.
    • It's easier for HR to track time.
    • Employers don't have to pay-out the remaining vacation pay.

Ask a lawyer

Our network attorneys are here for you.
Characters remaining: 600
Rocket Lawyer Network Attorneys

Legal guides

  1. Adopting Inclusive Holiday Pay and Time Off Policies
    3 min read
  2. Federal Holidays & Overtime Pay: How To Calculate Time and a Half
    2 min read
  3. How to Fix a Mistake in Employee Pay
    3 min read
  4. Jobs Governed by Fair Labor Standards Act (FLSA)
    2 min read
  5. Extended FFCRA Tax Credit for Employers Offering COVID Paid Leave
    4 min read
  6. Furlough Back Pay & Notice Requirements: Employee Rights
    5 min read
  7. Stocks for Employees: Incentive Stock Options
    3 min read
  8. What Is a Furlough and What Does It Mean for Employees?
    4 min read
  9. How a Leave of Absence Form Works
    2 min read
  10. Paid sick leave laws by state and recent federal legislation
    6 min read
  11. Legal Guide to Severance Pay and Severance Packages
    4 min read
  12. FMLA guidelines and paid sick leave legal answers for employers
    5 min read
  13. FMLA, Paid Family Leave and Leave of Absence: Legal Answers for Employees
    6 min read
  14. New FFCRA Poster Required by the Department of Labor
    1 min read
  15. How To Pay Employees for 4th of July
    4 min read
  16. How To Calculate and Withhold Payroll Taxes
    4 min read

Looking for something else?