ELMO’s Employee Sentiment Index for Q3 has just been released, and unsurprisingly, Australian workers are feeling stressed and burnout.

Even as businesses attempt to lure staff back to the office, almost seven out of ten employees (64 per cent) continue to work from home to save money, as concerns regarding transport costs and food spending continue to mount.

All that time spent at home is also having an impact on when and how employees take leave. Almost 25 per cent of employees have accrued more than the yearly entitlement, meaning businesses may be risking millions of dollars in leave liability. According to the data, the average employee now has 23.8 days of leave accrued.

Cost of living impacting holiday

Almost half (41 per cent) of employees say they have avoided taking leave to save money or because of the cost of living, while one in four say they have too much work to take leave. Thirty per cent of Aussies say they’re overwhelmed by the amount of work they have to do

This sense of overwhelm is also pushing workers to actively search for a new role, with 18 per cent of employees looking for new jobs in Q3 – the highest level for 2022

Employees are also accumulating sick leave (also known as personal or carer’s leave). A third of workers (32 per cent) have more than the yearly entitlement for personal leave, with the average number of days saved over double the annual amount (21.7 days).

Time to prioritise leave

Danny Lessem, Co-Founder and CEO of ELMO Software, says these findings should strongly remind business owners to prioritise leave management with their staff.

“Allowing annual leave accrual to blow out not only impacts a business’s bottom line but is a significant liability on the books, potentially costing Australian businesses millions of dollars. What’s more, taking leave is crucial for employees’ wellbeing. The damaging impact of burnout, with its flow-on effects on productivity and performance, would be unnerving to quantify.

The leave crisis

Lessem says business owners need to understand why staff are not taking leave – is it work pressures or something else?

“Is it due to unrealistic workloads, lack of resourcing, job insecurity, or because of the rising cost of living and economic uncertainty in Australia? Whatever the reason, it needs to be rapidly addressed by business leaders,” said Lessem.

Starting the new year fresh

Lessem suggests that business owners who focus on effectively managing employee holiday entitlements over the next few months will come out ahead as we move into the New Year.

“As the end of the year and holiday season approaches, this issue is particularly relevant for both employers and employees. Mandating employees to take a significant portion of their annual leave, encouraging them to enjoy a well-earned break and look after their mental health and wellbeing is paramount.

“It’s been a challenging year for everyone, and as we move into planning for 2023, people management processes and solutions should be reviewed with a lens that considers workloads, resourcing and project deliverables, yet prioritises simplification, efficiency and employee wellbeing,” Lessem said.

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