What is annual leave to you?

We understand the importance of a work-life balance today more than ever before. Still, many UK employees aren't making the most of their annual leave allowance.

All employees are entitled to annual leave by law, and some consider days of annual leave untaken as days worked for free. Other times, there’s a strategy at play, as some employers will allow you to carry some unused days over. If an employee is planning something big the following year, it may suit them to use their allowance however it works best for them.

The amount of annual leave taken between 2020 and 2023 dropped by 12% from an average of 38 to 34 days (People HR).

Why are employees taking less annual leave?

The trend differs between industries, and workplace culture plays a role. At Pluxee UK, we understand the role annual leave has in supporting work-life balance. Our managers actively encourage their teams to use their leave, and we offer an Annual Leave Purchase Scheme as an employee benefit.

Some of our Pluxeers call our Annual Leave Purchase Scheme their favourite benefit, not only using all their annual leave allowance but buying more! Whether we go on a family day out, stay at home or go on holiday, there are plenty of reasons for us to take a day off work, recharge our batteries and reduce stress.

What does it mean for your business?

More present employees are more productive employees, right? 

Wrong. Employees with a poor work-life balance are more at risk of burnout and illness. Lack of self-care can cause employee stress levels to rise and employee engagement to reduce, negatively impacting your business.

More balance, more joy, more people and business benefits!

Six Ways Annual Leave Helps Your People and Business

The UK dedicates a whole month to stress awareness each year because of its negative impact on people and the economy.

Healthy people = healthy business

When employees are absent due to illness or annual leave, productivity may slow temporarily. However, presenteeism - working when not in full health - costs UK businesses more than absenteeism. So, your people should take the time to heal rather than continue to work. The same is true of those who power through when their mind and body are screaming for a rest.

1. Reduce employee stress: Holidays help us feel better as they remove us from the tasks or environments that cause stress and anxiety (American Psychology Association). 
2. Boost employee engagement and motivation: People have a breaking point and can only work at full speed for so long. When the scales tip too heavily in the direction of work, something will give way - employee engagement, motivation and wellbeing. No matter the pressures on your business, it’s essential to remember that it’s powered by people and for it to thrive, so must they. Annual leave helps them enjoy hobbies, travel, rest, and even-out the scales.
3. Improve employee wellbeing: Employees who don’t have a healthy work-life balance can become mentally and physically unwell, increasing their chances of going on long-term sick leave. 63% of long-term sickness absence is due to mental ill-health. Encouraging your employees to use their annual leave allowance will save your business money in the long term. 
4. Improve productivity:  When an employee’s cup is more empty than full, their perspective on work may also dip. Procrastination costs UK businesses £21 billion each year. Causes of procrastination include low employee engagement and motivation, among other contributing factors.
5. Creativity boost: Creativity and innovation drive business growth. One of the reasons employers opt to hold workshops and brainstorming sessions outside of the office is because it takes employees away from BAU demands. Fresh surroundings also help encourage new ways of thinking and ideas to flow. When employees battle day-to-day workloads and stresses, creativity can dip. Time off work and experiencing new things help get those creative juices flowing again.

6. Reduce absenteeism: Employee engagement levels soar when employees are healthy and happy. Figures show that businesses lose 131 million working days a year due to sickness absence (Britain’s Healthiest Workplace Study), so any steps taken to enhance physical wellbeing will help. Still, unengaged and disengaged employees also increase absenteeism, so filling their mental cup with access to an Annual Leave Purchase scheme will help reduce avoidable absences.

    

The Return to Work

Don’t undo the positive work a two-week break has done to reduce employee stress by piling on the tasks the moment they return to work.

Some roles are easier to cover than others, and employees who are unable to delegate work while they’re away usually have to schedule work in advance, meaning they had fit that work in before they went away. They definitely need their much-earned break. Unfortunately, they risk undoing the healing and recharging if they return to work and have to get to full speed immediately.

Have you ever had a massage, felt brilliant and then the drive home undid it all? It’s the same with annual leave. A rested, relaxed and eager employee can feel daunted and stressed when they return to work if they have deadlines to meet alongside a full inbox to work through.

It’s exciting when your team is at full capacity, and productivity can return to normal, but give those returning to work after annual leave a chance to find their feet. 

Tips on encouraging your people to use their annual leave

1. Make the booking systems easy to use.
2. Send employees updates regarding their usage.
3. Share recommendations from colleagues on great places to visit.
4. Ensure managers communicate the importance of using their annual leave
5. Help them save money while on leave by sharing where they can take advantage of their employee discounts.

More Time for What Matters Most with Pluxee UK

Our initial question - ‘What is annual leave to you?’ - makes more sense now.

Annual leave is more than a statutory requirement. It’s a way to reduce employee stress, increase employee engagement, support wellbeing, boost creativity, and thrive!

Offering employees more with our Annual Leave Purchase scheme can make an even more significant impact and reduce your annual wage bill. 

Arrange a call to enhance employee engagement and reduce employee stress today.