FRS Recruitment survey finds 42% of employees didn’t use full holiday entitlement last year
The recent research shows that almost one in five people (19%) did not take five days of annual leave or more, which in business terms represents a week’s leave
28 August 2024
More than 4 out of 10 people (42%) did not make full use of their full holiday entitlements last year, according to research on annual leave undertaken by FRS Recruitment.
Almost one in five people (19%) did not take five days of annual leave or more, which in business terms represents a week’s leave.
Fifteen percent of people said they did not take four days, 17% had three days which went unused, 19% did not use two days of leave and 3% had one day’s holiday remaining.
A total of 1,886 people took part in the survey used to compile the FRS Annual Leave Report.
Annual leave report
The FRS Recruitment Annual Leave Report also found that almost one in two people (48%) said they used their annual leave for domestic travel last year, the most common reason cited.
Forty-six percent used it for foreign travel, 15% for family reasons, 9% for personal reasons and 4% due to illness.
For one in four people (24%), the longest period of annual leave they took was less than a week.
Thirty-eight percent stated their longest break was two weeks, 33% took no longer than one week, while 5% took more than two weeks’ leave.
Before taking annual leave, giving two week’s notice was the most common requirement with 46% saying that is the period of advance warning they need to give their employers.
Thirty-eight percent must give one month’s notice, 12% can give one week or less and 4% say they must provide notice in excess of a month.
More than three out of ten people (31%) also say their annual leave is lost if it goes unused, while a similar number say it is carried over into the following year (30%).
A further one in four (27%) receive payment in lieu for unused leave.
In terms of other types of leave, sick leave was the most common other form of leave used last year with four out of ten people (41%) making use of this entitlement.
Thirty-five percent made use of parental leave, 35% care leave, 33% maternity/ paternity leave, 7% study leave and 7% due to a bereavement.
Almost six out of ten people (58%) say they would be in favour of their employer introducing unlimited annual leave, while a majority of people (56%) would also be in favour of a four day working week, even if it impacted on their salary.
Points of negotiation
“After salaries, holidays and annual leave entitlements are arguably one of the main points of negotiation between employees and employers,” said Lynne McCormack, general manager, FRS Recruitment.
McCormack notes that despite their importance, an increasing number of these sought after days of leave are going unused by employees.
“Not taking their annual leave may suit some people, perhaps they receive payment in lieu or wish to carry over their leave to the following year. However more than three out of ten people say they lose any days which go unused.”
McCormack notes that when people do holiday, it is also interesting to see the length of breaks they take.
The most popular choice is a maximum of two weeks in one go, which was taken by four out of ten people last year. Yet for one in four people, their longest break was less than one week.
“In FRS Recruitment we have also seen an increasing number of candidates and employers exploring the possibility of implementing ‘unlimited leave’ policies,” sayd McCormack.
Almost six out of ten people would like to see such a policy introduced by their employer.
A majority of people would also be interested in a four day work week, even if it had an impact on their salaries.
McCormack thinks these findings are particularly interesting in the context of the high percentage of people who didn’t use their annual leave last year.
“Holidays and leave are such an important part of professional life these days, as they play a key role in maintaining work/ life balance and in how we manage the many demands on our time outside of work,” McCormack concluded.
Read more: Sick leave: Ensure your contracts and payroll provider are ready for change, advises CSNA
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