As an employer, you want to do everything you can to take care of your employees—and that includes making sure they have ample PTO to cover vacation time, personal days, or any other time they may need to take off.
But the question is—how much paid time off is enough? Is your PTO policy more or less competitive than other companies? And if you’re offering your employees four weeks PTO, is that good?
Defining PTO
Before we jump into how much PTO is considered competitive, let’s quickly cover what, exactly, is considered PTO.
PTO is an umbrella term to cover any paid time off you offer your employees. That includes everything from:
- Sick time. If your employees need to take a day off because they’re sick or need a mental health day, that would fall under PTO.
- Vacation time/personal time. Offering your employees paid hours for things like vacations or to attend to personal issues is also considered PTO.
- Paid holidays. If you pay your employees on federal holidays—but don’t require them to work on those holidays—that’s also considered PTO.
- Paid leave. Any type of paid leave (for example, sick leave or maternity leave) is also considered PTO. (If an employee takes an unpaid leave, that wouldn’t fall under the PTO hours umbrella.)
There are a number of different ways to structure a corporate PTO policy, including:
- Vacation time, sick time, and personal time. Many companies offer a certain number of PTO days for vacation, sick leave, and personal days (which is typically accrued based on how many hours the employee works in a pay period and whether they’re full time or part time). While the number of days vary from company to company, employees usually get somewhere in the ballpark of 10 days of vacation time, five days of sick leave, and two personal days. In addition, the company may also offer a number of paid holidays (like Christmas or New Year’s Day).
- X number of PTO days. Instead of breaking down PTO into sick days, personal days, vacation days, and paid holidays, some companies give their employees a blanket number of PTO days per year that they can use as they please—so, for example, an employee might opt not to take any sick days, but then use all their PTO days to take a three-week vacation.
- Unlimited PTO. Some companies, particularly in the tech sector, offer unlimited PTO—where employees can take unlimited vacation or sick days. While this concept may sound appealing to employees in theory, in practice, it often doesn’t work out as they expected (for example, some companies frown on taking too much time off—and employees don’t get paid for unused vacation at the end of the year like they might with other PTO structures).
- Increasing PTO. Some companies also opt to give employees more PTO the longer they’re with the company. So, for example, new hires might get 10 days of PTO their first year—but then get an extra day the next year, an extra week after five years of employment, and an extra two weeks of vacation after 10 years of service with the organization.
Why a competitive PTO plan is important
Now that you know what PTO is, let’s cover why having a competitive PTO plan is so important for your business.
A generous PTO policy is a good move for your business for a few reasons, including:
- It can help attract and retain top talent. When you offer a competitive PTO package, it can help attract new employees to your company—and help keep them there. In fact, 63% percent of employees say they would turn down a job offer that did not include PTO.
- Offering plenty of paid time off shows that you’re invested in your employee’s health, happiness, and success—which can go a long way in supporting your talent acquisition and retention efforts.
- It encourages work life balance. If your employees work around the clock and don’t get any days of vacation, sick time, or other PTO days, they’re going to burn out—and they’re not going to do their best work. A generous PTO policy helps encourage work life balance with your employees and can keep burnout at bay (which is especially important now, as we navigate the COVID-19 pandemic).
- It can make for a better work environment. When employees are offered things like benefits, paid vacation, and plenty of PTO, they’re going to be more invested in their jobs and the company, which can make for an overall better (and more productive) work environment.
Is 4 weeks of PTO good?
Clearly, a competitive PTO plan is a good move for your business (and for your employees!). But what, exactly, counts as “competitive?” Is four weeks a good amount of PTO to offer your employees?
The answer is—it depends.
According to a 2019 article from the balance, on average, US employers offer 10 paid holidays, two weeks paid vacation (or, in other words, an additional 10 days), two personal days, and eight days of sick leave. That’s 30 days total—which, in terms of business days, would be six weeks.
From that perspective, offering four weeks of PTO wouldn’t be competitive.
But there are other factors at play. For example, if your team is mostly employees who work less than 20 hours during the work week, they’d typically be entitled to a lower amount of time off or amount of vacation days—and if you offered them four weeks of PTO, it would be considered extremely competitive.
A rule of thumb
Ultimately, you’ll have to make the decision on what the right PTO policy is for your company and your team. But as a rule of thumb, the more generous you can be, the better. At the minimum, you should aim to write a PTO policy into your employee handbook that’s in line with other major employers in your area—and if you can, aim higher than that. Again, the more generous you are with your PTO, the more you’ll be able to attract and retain top talent—and the better off your business will be as a result.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
Sample
Text Copied to Clipboard
Copy

Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
Sample
Text Copied to Clipboard
Copy

Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
Sample
Text Copied to Clipboard
Copy

Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
Sample
Text Copied to Clipboard
Copy

Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe