Saving your leave for a rainy day? Here’s why that might be a problem.
Dec 6, 2024
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Madeleine Dow, a management consultant, is joined by Dr. Libby Sander, a workplace behaviour expert, and Sarah McCann-Bartlett, CEO of the Australian Human Resources Institute. They highlight the alarming trend of employees hoarding about 160 million days of unused leave in Australia. The discussion dives into cultural differences in leave-taking, the importance of breaks for mental health, and how post-COVID landscapes are shifting employee demands for flexibility. All stress that supportive workplace cultures are essential for encouraging time off.
Accumulating leave reflects a workplace culture that prioritizes presenteeism, leading to employees feeling guilty about taking time off.
International differences in leave policies impact how employees utilize vacation days, with some cultures encouraging regular breaks over leave hoarding.
Deep dives
Leave Accumulation Trends
In Australia, there is a significant accumulation of annual leave, with around 160 million days banked by employees. This is largely due to the ability to accrue leave, fostering a mindset where many opt to hoard their vacation days as a buffer against potential job loss or financial hardship. Additionally, staff shortages and increased workloads resulting from the pandemic have led to individuals feeling guilty about taking extended time off, as they worry about overwhelming colleagues with their responsibilities. This hoarding behavior is backed by cultural norms that prioritize presenteeism, often discouraging employees from using their leave even when necessary.
Comparative Leave Policies
Internationally, leave policies vary greatly, influencing how employees utilize their vacation time. In the UK and many European countries, employees typically receive a set amount of leave at the beginning of the year, which must be used by December, resulting in a 'use it or lose it' mentality that encourages more frequent time off. In contrast, the United States lacks a federal mandate for paid leave, leading to a culture where workers often take less time off due to job security fears and personal financial concerns, meaning the accrued leave becomes less a right and more a rarity. These differing systems highlight how cultural attitudes and structural policies shape the leave-taking behaviors of employees in various regions.
Impact on Workforce Wellbeing
The accumulation of leave can negatively affect both personal health and workplace productivity. Research indicates that employees who do not take regular breaks face increased risks of burnout, lower motivation, and higher absenteeism, worsening overall job satisfaction. Furthermore, companies with high leave balances on their books may suffer financially, as accumulated leave is considered a liability, impacting the organization's balance sheet. To counter these issues, fostering a supportive culture that encourages regular time off and modeling healthy leave-taking behaviors by management can help improve employee wellbeing and productivity.
Leave entitlements are building up on business balance sheets. At the same time, some employees feel they don't get enough flexibility around when they can take holidays.
We explore the reasons why workers are accumulating leave, and what it says about workplace culture in Australia.