It’s nearly December — why haven’t you used up your annual leave?

Many of us in the private sector are looking forward to a lengthy Christmas break. But while some workers are crawling to the finish line with just one or two days of holiday leave remaining, the majority may struggle to take significant time off, despite their best intentions.

According to a new survey by Timetastic, over half of UK workers didn’t use up all their annual leave in 2023. They estimate that, this year, around 20 million working people chose to stay at their desks during the summer holidays, rather than book a week in the sun.

Whether or not a worker takes their annual leave is, ostensibly, their decision. But employers should be mindful of the potential impact it can have on staff wellbeing and future leave entitlements — and the outside factors that might be contributing to this holiday hesitancy.

Bah, holidays

In total, 61% of the 1,500 employees surveyed by Timetastic reported they had annual leave that had gone unused during the previous 12 month period.

Most bosses (unless they’ve adopted the leadership style of David Brent) recognise that staff who don’t use up their annual leave allowance don’t always do it out of love for the job. 

Instead, the more common culprit is a combination of internal pressures to succeed and external demands to keep up, resulting in a perfect storm of burnout and overwork.

Timetastic also asked employees why they felt unable to use their annual leave. Concerningly, 9% of men and 6% of women said they felt pressure from management to not take a break. Among those aged 25-34, 17% said they felt this way.

Right to disconnect

That employees are struggling to switch off will not be news to HR leaders. Remote work policies have led to an ‘always-on’ culture at many UK offices. The issue is so widespread that 54% of employees now expect to work while on annual leave.

Without proper rest breaks and rules about contacting staff out of hours, workers are more likely to suffer from burnout and decreased productivity. This can in turn create a toxic work environment where staff feel pressured to work excessive hours and neglect their wellbeing. 

Other countries have already introduced laws designed to give employees the right to disconnect outside of work hours. Labour had promised to do similar in its pending Employment Rights Bill. However, the plans were left out of the draft legislation in October.

Oliver Higenbottam, Managing Director of Timetastic said: “Taking a break isn’t just a “nice to have”—it’s crucial for health, well-being, and overall productivity. 

“Workplaces must actively encourage it and make the effort to ensure their employees feel like they can take a well-deserved break.”

How to encourage staff to use their leave this December

Ahead of the Christmas break, employers should encourage their staff to book in their annual leave by sending clear messaging that conveys the benefits that holidays offer.

This is particularly important if your workplace has a ‘use it or lose it’ policy, as employees may not be aware that they have a confined time period in which to use their allotted leave.

There is also a legal precedent to promote annual leave use. While they can dictate when staff take their holiday if necessary, UK laws surrounding holidays state that bosses should “actively encourage” workers to use their allowance when they can.

To do so is also beneficial for business. Some firms allow team members to ‘cash-in’ their holiday allowance by selling it back to the company, or carry their days off into the next year. 

Having to pay out for lost annual leave days this winter could negatively impact cash flow. Similarly, say your employees each take an extra 10 days of holiday into the new year. This could lead to an increase in absences and potentially disrupt productivity and planning.

Happily for bosses, the best method to encourage annual leave use is to lead by example. CEOs can spread holiday cheer by introducing clear guidelines and open discussions about leave, supported by a leadership team that regularly takes time off themselves.

In an era where it’s becoming increasingly harder to switch off from work, employers must prioritise employee wellbeing this December. ‘Tis the season to relax and recharge in 2024.