Accruing Annual Leave
A study undertaken in 2009 found that Australians have 123 million days of accrued annual leave and that annual leave accrual is endemic across businesses and industries of all sizes.
No business should consider itself too big or too small to feel the impact of accrued annual leave. Stockpiling has become an entrenched workplace behaviour potentially affecting every business.
Within the workplace, there is a consistent perception that leave is more difficult to take than it used to be. This has been driven by two factors.
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Increasing work pressures have created barriers for employees who want to take time off.
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It is increasingly the individual’s responsibility to organise cover for their workloads when on leave; businesses often delegate responsibility to the individual thereby compounding their workload.
Importantly, a significant level of accrued annual leave can be a drain on business. Allowing employees to build up large reserves of leave creates a false economy – it can cost the business more at the time it is taken. This is particularly true if it has been earned at one pay rate but taken at a higher pay rate some years later (with the addition too of leave loading). If the business is going through a lean period, having to pay out significant accrued annual leave only puts further strain on dwindling reserves and can result in letting staff go.
In addition to all the economic benefits of not accruing annual leave, there is also good business sense in ensuring you and your staff take holidays when they are due. It shows you are recognising the occupational health benefits of leave.
Leave from the office provides everyone with the opportunity to become re-energised and better able to cope with workplace pressures, stress and demands. Take the time to review your staff’s accrued annual leave and consider what policies you may be able to implement to address this within your business.