The push for 5 weeks of annual leave: It could be a smart business move

The desire for greater flexibility and increased work/life balance is gearing up, with many pushing for a mandatory five weeks annual leave for employees.

The SDA, or the union for retail, warehousing and fast-food workers, is working to make this desire a reality, campaigning for five weeks of annual leave for a range of workers, especially in retail.

Some are taking this suggestion on board, with IKEA and Bunnings implementing the five weeks policy and Apple introducing an extra five days of “special leave”.

Work/life balance is becoming more and more important for employees, who are increasingly prioritising wellbeing over the grind mentality of old.

Employers who understand the benefits that offering increased flexibility can bring can help ensure that staff remain happy and engaged. It’s not just important for promoting healthy employee wellbeing; it also makes good business sense.

“In the evolving landscape of talent retention, employers are recognising the value of time as a currency. Additional annual leave entitlements have become a strategic investment for some, not just in attracting professionals, but in fostering a culture that prioritises wellbeing and work-life harmony,” commented Robert Half director Nicole Gorton.

According to research by Robert Half, 30 per cent of Australian employers offer unlimited annual leave days as a flexible work option, and 37 per cent plan to offer unlimited annual leave days as a flexible work option. Meanwhile, 58 per cent of Australian workers would like to have unlimited annual leave days introduced by their employer as a flexible work option.

Ms Gorton continued: “Our most recent survey found three in 10 employers offer unlimited annual leave days in a bid to attract and retain high-calibre individuals. Additional leave days are a cost-effective way to enhance the overall employee experience and elevate staff morale and satisfaction.”

Employers can make their workplace a more attractive option for candidates, promote positive wellbeing and keep staff happy and engaged through flexible working policies that prioritise adequate work/life balance. Increasing the amount of annual leave offered can be a great way to achieve this.

“In the pursuit of a fulfilling career, jobseekers increasingly recognise that additional annual leave isn’t just a break from work; it’s an investment in personal wellbeing, a chance to refill their cup, and to recharge creativity,” Ms Gorton explained.

“This reflects a modern understanding that true success extends beyond the confines of the office. For this reason, additional annual leave is a big win in the eyes of a jobseeker and carries a strong point of differentiation for the employer.”

However, while this can be beneficial to employees and employers alike, there are still challenges that must be addressed, namely, planning around the increase in absent employees.

“Offering five or six weeks of annual leave, or unlimited leave like some companies, embodies a double-edged sword in the workplace. On one side, it cultivates a culture of employee wellbeing, fostering satisfaction, work-life harmony, and heightened productivity. However, it requires thorough workforce planning to iron out potential operational challenges, requiring a delicate balance between organisational flexibility and the need for a contented and rejuvenated workforce,” concluded Ms Gorton.