Top 10 Questions to Ask HR About Vacation Benefits When Starting a New Job

For those of you reading this post because you have just accepted a new job offer, congratulations!  In this tough economy it may not be possible to negotiate for a more rewarding vacation benefit, but at least you can ask the right questions to fully understand how it all works.  The following list of questions can be used when meeting with your HR representative for the first time to gather details on the vacation and paid time off policies and guidelines at your new company.

While you can ask these questions via email or read it in the organization’s HR manual/handbook (if one exists), I recommend that you set up an appointment with the right person in HR to gather the answers first hand.  While this post covers the basics for most employers, there may be finer points that require further explanation (and uncover more questions).  Since there is no U.S. law governing vacation policy (in contrast to Europe), what you are granted at your new place of employment can vary significantly from your friends and family.

Make it a priority to get these questions answered in person and in writing so that you can plan to use your vacation time off from work to the fullest and meet your work-life balance goals for the upcoming year.

1. Does the organization offer traditional vacation time plus sick and personal days or does it use Paid Time Off (PTO)?
Many companies have switched from offering separate vacation days and sick days to providing employees with a bank of days off that can be used for either purpose. PTO is becoming a popular option but it may or may not benefit you personally based on how you currently use vacation days and how often you or a member of your family falls ill each year.  Learn more at About.com – Management.

2. When does vacation accrual begin for a new hire?
Make sure to find out if you begin to accrue vacation as of your start date (first date of employment for pay, including training), or after an initial period of weeks or even months.  Unfortunately numerous major employers require entry level hires wait an entire year before getting vacation time, which is a truly unfortunate situation.  Even if you start earning vacation days from day one, you may not be allowed to use them right away so be sure to ask.

3. How many days or hours of vacation do I earn each year?
This should be the first question you ask and hopefully you have been granted more than the typical 2 weeks of paid vacation per year that is the norm in the United States.  Employees with significant years of prior work experience may be allocated additional weeks of vacation time so they do not have to start back at the beginning when changing employers.  This is the type of question to ask before you actually accept a job offer to determine if there is any flexibility in company policy.  In some instances you may be able to get the same amount of vacation time as at your previous place of employment based on years of service, level of education, and the position for which you were hired.  Alternatively if vacation time is important to you (and it should be if you are reading this blog), there may be an opportunity to negotiate for an additional week off instead of asking for an increase in annual salary above the amount offered.  More on that in a future blog post.

4. Does paid time off accrue and get used during a calendar year or according to the anniversary date for the employee?
Some companies use the calendar year (January to December) for all employees when it comes to accruing vacation days and rolling over unused time from one year to the next.  In other companies, your usage period will be based on your actual start date and end 12 months from that date (your anniversary date).  Being aware of the difference means that you can accurately monitor your vacation hour totals on your pay stub.

5. After how many years of service am I eligible for additional paid time off?
The vacation policy as outlined in your employee handbook should have a table highlighting the number of years of employment required to get an additional day or week of vacation time.  You may have to be a full-time worker and wait 5 years (or more) to earn an additional week of vacation time.  This is one area where policies vary greatly across companies even with the same industry, not to mention the differences between the public and private sector.  Review the rules today and schedule a future reminder on your online calendar (e.g. Google Calendar) when you reach this important milestone.

6. Can I take paid time off in hour, half-day, or only day increments?
Depending upon the flexibility of your employer and your specific responsibilities at work, you may be given the option of taking time off in as little as hour increments.  This can help when running errands, spending time with family, taking a class or volunteering.  For those of you who cannot take off hours at a time, ask whether you can take a half day off from work in order to plan a micro-vacation.  Regardless of your options, most employers calculate vacation days in hours and fractional hours and that is how it will appear on your pay stub.

7. How far in advance should I ask my manager and inform HR about taking time off from work?
Are you someone that plans family vacations far in advance and can offer your manager notice about these trips, or do you prefer to be spontaneous and take advantage of last minute travel deals?  Either way it pays to be aware of vacation approval policies to ensure that you can be away from work when you want to and at the same time not inconvenience your co-workers who have to cover in your absence.

8. Does the organization have a “use-it-or-lose-it” policy or “cap” when it comes to vacation roll-over?
This question can span an entire blog topic and I will write about it in more detail in the future.  I am sure you are well aware that companies typically allow employees to roll-over a fixed number of vacation days from one year to the next, sometimes with written permission from HR. However in many companies that is not the case and you may be subject to what is known as a “use it or lose it” vacation policy. This means you are NOT entitled to roll-over unused vacation hours (or be capped to a set number of hours) and must use them by the end of the calendar year or your anniversary date (accrual/usage period). Use-it-or-lose-it policies are being challenged in many U.S. states and fortunately in some states like California they are not legal at all (search online for your particular state). The lesson here is to fully understand the policy at your new employer and be absolutely sure that you do not lose vacation days when the new year hits. In addition, it is critical that you be aware of any “cap” or “ceiling” as to the maximum number of vacation days you can accrue before you are “maxed out” and stop accruing new vacation hours. Regardless, remember that vacation time is money – your money – so do not give it back to your employer simply because you did not ask the right questions and closely monitor your vacation hours. Even better, use those vacation days throughout the year and enjoy the healthy work-life balance you deserve.

9. Can an employee use a Personal Day (if applicable) for vacation purposes?
For those of you who want to take as many trips as possible in a given year, or take a really long trip all at once, personal days may enter the picture.  Again policies vary per employer so ask whether you are allowed to tack on a personal day as part of your vacation or if they can only legitimately be taken for true “personal” purposes such as family obligations, home management, and medical reasons. In most cases if you are granted personal days or floating holidays, they are treated like sick days and do not roll-over from one year to the next if left unused.

10. Does the organization shut down at the end of the year or have other forced vacation time?
This last question is a sign of the times, where numerous employers are closing down the entire office the last week of the year and forcing their staff to take vacation time.  It is usually referred to as a furlough and with it comes pay and labor law considerations for exempt and non-exempt employees. Learn more at HRhero.com. If your company does close down, you may have the option of taking those days unpaid (remember a few of them are likely to be paid holidays) and save your vacation benefit for the time that is best for you. Again there is no law requiring employers to offer any flexibility as to when you can take vacations, so you may be limited in other ways and forced to take time off at a time not of your own choosing.

11. This is supposed to be a Top 10
OK I do not have a #11 to share, but I am sure there are other questions that new hires should ask about vacation benefits that I completely missed.  I invite you to add a comment below whether you are an employee or human resources professional, and let me know what critical question should be asked up front when it comes to vacation policy.

Happy Traveling…
-Scott