Why prioritising employee time off is essential for success
Employee leave is a core element of working life, but is its importance being underestimated?
According to research, 4 in 10 UK workers fail to use more than a week’s worth of holiday entitlement each year, amounting to £6.6 billion worth of unused leave.
At edays, we believe that encouraging the use of annual leave is vital to a company’s long-term success. Having a workplace culture that enables employees to take time off as and when they see fit is likely a better place to work, compared with one that makes it difficult to book time off, scrutinises leave requests, and has long-winded processes in place to approve those requests.
There are research-backed reasons to think that employee time off is essential to business productivity and growth, too, as we explore below.
Why is annual leave usage essential for organisational success?
It improves mental wellbeing and reduces burnout
Taking time off allows the brain to rest and reset, returning to work with more mental clarity. When employees are constantly working without adequate breaks, mental fatigue is likely to set in, leading to higher chance of errors, a lack of focus, and eventually burnout.
The World Health Organisation estimates that workplace burnout costs the global economy $1 trillion annually due to reduced productivity. According to a recent study, encouraging the use of annual leave in your teams can actually help to boost productivity by as much as 40%.
It enhances cognitive function and creativity
Evidence suggests that taking part in creative activities outside of work can help to improve job performance. Activities such as walking, video gaming, travelling and more are all linked with a boost in relaxation, control, creativity and problem-solving with can then contribute to a person’s output at work.
It boosts employee engagement and morale
Annual leave helps employees return to work with renewed energy and motivation, leading to higher levels of engagement and better team dynamics.
A Gallup study showed that engaged employees are 21% more productive than their disengaged colleagues. Employees who took all of their annual leave allowance were also more likely to report feeling valued by their employer.
It strengthens your employer brand and culture
Encouraging employees to use their annual leave goes a long way to boosting your workplace culture, which in turn feeds your employer brand. If employees feel supported, respected and valued, they’re more like to recommended you as a place of work, and leave positive reviews about your organisation online.
It improves employee retention and reduces turnover
Employees who regularly use their annual leave are more likely to stay with a company long-term, reducing recruitment and training costs.
According to Gallup, organisations with high employee wellbeing (including annual leave usage) experience 41% lower absenteeism and 25% lower turnover.
It encourages a better work-life balance
Having a good work-life balance is crucial for sustainable productivity. Employees who are able to retain this balance are less likely to experience chronic stress, burnout, or mental health issues. The American Psychological Association found that two thirds of employees who regularly take time off from work say they return feeling recharged and ready to be more productive.
Encouraging time off work is great, but how do you manage it?
There appears to be a clear link between taking time off from work, and improvements to productivity, wellbeing and work-life balance. But managing it within an organisation, especially a large or global one, can be a real challenge.
With multiple teams and/or locations, tracking annual leave (and other leave entitlements), can become disjointed and disorganised. With a system like edays, HR and people managers are empowered to manage employee leave allowances, handle leave requests, view team calendars, carryover unused leave with ease, and so much more.
Find out more about our leave management system by booking a demo below.
