Employees hoarding annual leave, increasing workplace pressure

Australian employees are accumulating annual leave instead of taking much-needed breaks, adding strain to both themselves and their workplaces.

A report from ELMO has revealed that Aussie workers are still not prioritising their leave. According to the report, older employees, such as Baby Boomers and Gen X, have the highest leave balances, averaging 19.9 and 20.3 days, respectively. Whereas younger workers hold significantly less leave, with Millennials at 14.9 days and Gen Z at just 8.8 days.

Sixty-one per cent of those employees expressed a barrier to using their leave, with 21 per cent noting that they were too busy at work, while 18 per cent said they couldn’t afford to go away on holiday.

Concerns about job security and economic uncertainty are also influencing workers’ decisions. Close to a third (29 per cent) anticipate redundancies in the coming quarter, while 38 per cent feel pressure to work harder and longer to secure their positions.

“Leave isn’t always the first thing people associate with productivity, but time off plays a crucial role in maintaining performance,” said ELMO Software’s chief executive, Joseph Lyons.

“Stepping away from work helps employees return feeling rested, energised, and more engaged, ultimately improving focus and productivity.”

According to Lyons, from a financial perspective, excess leave accrual also poses challenges for businesses. “Untaken leave represents a liability on company balance sheets, and leave loading adds to the financial burden. Across our customer base, we’re seeing over 13 million hours of accrued annual leave, which is a significant cost,” Lyons said.

The data also highlights growing concerns about employee wellbeing, with 43 per cent of workers feeling burnt out. Younger employees, especially Gen Z, are struggling the most, with 52 per cent experiencing burnout.

Lyons stressed the importance of encouraging employees to take a break, particularly during the holiday season.

“The end of the year is a quieter period for many businesses across ANZ, making it the ideal time for employees to take an extended break and recharge. With workloads increasing and burnout rising, spending time with family and friends has never been more important. A well-rested workforce will return refreshed and ready to perform at their best,” said Lyons.