Gallagher's paid time off (PTO) market study provided critical context to help leaders avoid fixing the wrong problem.

Author: Thomas Rylko


Client summary

  • Large urban medical facility employing 6,000; younger demographic
  • Trying to control costs
  • Attraction and retention issues
  • Earlier cost-cutting decision resurfaced as a potential employee retention issue

Challenge: Understanding the real issue

In a legacy cost-cutting move, a large medical facility experiencing financial challenges gained the support of employees to cut two days of PTO to help "save the hospital." Fast-forward 10 years, and the facility is in a healthy expansion mode. In focus groups, employees voiced their desire to regain the two forfeited PTO days. Leaders considered reinstating the two PTO days in response to employee requests.

Solution: Gallagher's PTO market study provided context for a competitive new PTO benefit

The Gallagher team completed a PTO market study, revealing to leaders that their organization stood five PTO days below market. The employee satisfaction of regaining two PTO days would have been short-lived — especially in the healthcare sector where staffing shortages fuel a highly competitive labor market.

Results: Better benefit alignment with the market

Leaders adhered to the blended data approach, considering sector market data with the focus group feedback. As a result, the organization aligned itself with the market and increased PTO by a week, strengthening its position to attract and retain talent. The Chief Human Resources Officer and his team saw employee benefit satisfaction scores increase as a result of enhanced communication around the total rewards assessment process.

Gallagher's Compensation Consulting and Total Rewards team can help your organization understand and fill any gaps between your current total rewards plan and the wants and needs your people face now. Contact us for a conversation.

Author Information


Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.