We keep being reminded on calls to take our PTO for our mental health. I now wonder if this is not a ploy to avoid payout during layoffs.
21 replies (most recent on top)
there is no financial benefit to the company of people taking PTO vs. paying out after termination. It's an accrued expense, so the company incurs expense for your PTO by accounting rules as it is earned. The only way the company saves money on PTO is if you forfeit PTO by not taking it all in the allowed time (which varies by state law).
The annual employee expense reported on the income statement for salaries, incentive and benefits is around $32 billion annually.
Using a median salary, if every single person carried over the max PTO it would shift about $225-250 million into 2021, or .07% of employee expense. Literally no one cares about this, it’s both immaterial and explainable. WF takes much larger charges and variances than this as a matter of routine.
It’s not a conspiracy, management doesn’t want a bunch of anxious, angry, stressed out people popping off at customers or coworkers. The anger some people display just on this board proves it’s a problem and people do need to take time away.
I'm not sure if people are reading too much into this but what I do know is 1) PTO is good for your mental health, 2) Saved PTO is bad from an accounting point of view for the company because it has to save money in the book for PTO payout. In other words, unused PTO increases balance sheet liability.
People are not taking PTOs probably due to the pandemic so the book's looking worse everyday. WF has over 200k employees, the amount of balance sheet liability is not trivial.
I'm more of a "glass half full" kind of guy so I'd like to think it's a win-win for both the employees (better mental health) and the company (reduced balance sheet liability) to take PTO.
Take care everyone!!
Make sure you take an accounting of your PTO so you can take it and look for a job. At this stage it doesn't matter.
It has nothing to do with layoffs or money. There is no reason to not take PTO. It is good for the mental well being of us, and that's why. IF you get laid off, you can then get paid out. The question that has been asked has not pertained to layoffs at all. It is always about "not having anywhere to go or anything to do". You can still go do things, just not fly across the world... But then you really can do that. We have no idea when this situation will end, so why change policies? Take it for your sake.
Plandemic? JFC
It’s because there won’t be any adjustments to the PTO policy due to COVID. You’ll receive your regular carry over and if you don’t use any because of the pandemic you’ll just lose it. It seems like everyone on this forum could use a mental health day or two. The quarantine, protests and potential layoffs are stressful so taking a day or two to disconnect wouldn’t hurt.
It is odd that this topic is so touchy.
There can be multiple financial benefits to employees taking their PTO now. Why be so insistent that the reason is x and only x, and could not possibly be y too?
Never said layoffs were not coming - just saying there are OTHER VALID reasons the company is encouraging employees to use their PTO - can't have entire company taking all their PTO Sept-Dec because nobody took PTO in the summer.
No conspiracy. You’re the one that’s brain dead id10t
https://www.abc15.com/news/business/wells-fargo-signals-substantial-layoffs-ahead
Has everyone gone brain-dead? It's pretty simple - no one been taking PTO due to the "plandemic", so they just want to avoid situation where everyone taking their PTO all at once towards the end of the year – gotta keep the place running, you know. Everything is not a conspiracy.
they are telling me the same too! Maybe like a rehearsed script. Anyways no way to go on a vacation with this pandemic so i wont waste mine either. Plus a safety net in case we get let go.
What group is RISK under?
Agree with most recent poster. I’m sitting on all my vacation simply because I have no plans because of this vile virus. I truly think it is a compassion reminder. A mention on a call was mental health in the company because of the outside environment with COVID and protests is taking a substantial toll and they can’t up the company mental health provisions. So do take time. Breathe. It’ll all be ok!
I’m sure company wife people are not taking vacations at the same rate as previous years due to Covid19. I canceled one of mine and maybe a second later this year. Wells doesn’t want a ton of people asking off in December. No conspiracy theory here. Just common sense.
Risk seems to be the primary target mentioned.
Risk
What groups? This is what I hear in marketing. However marketing already got skimmed down in September 2019 so I wonder how hard it will even get hit again.
@brs+15ycPyG4, it used to be slower during the holidays for my team, but now it's just as busy as at any other time of the year.
Our management is telling us the same thing. I think it is a ploy. What a bag of lies this place sells.
our group manager is saying same thing; save pto for the layoff then get unemployment for after the pto pay ends
I would just ignore it; I always take at EOY anyways its slower