Use it or Lose It!  Why you must remind employees to use up their annual holiday entitlement

What if your employees don’t take all their holiday entitlement within the year?  Surely, they lose the right to take the holiday? In most cases, yes, they lose the right to take the holiday, but it depends on various things.  Things such as the reason why they have not taken their holiday. Or what it says in their contract of employment.

If someone has been off sick and so has not been able to take their holiday, then you should consider allowing them to carry the remaining holiday over to next year.  Similarly, if they have been on maternity leave or parental leave then they will still have built up holiday entitlement.  So they must be given the opportunity to take it, or carry it over to next year.

Additionally, you may have a clause in your contracts of employment which allows people to carry forward some of their holiday until the next holiday year.

Isn’t it a good thing for the Business if people don’t want to take all their holiday?

 You might think your business benefits from the additional work you are getting if people don’t take all of their holiday.  After all, you have to pay them anyway, so if they choose to work, rather than take their holiday, then that is surely a good thing?

You should be concerned if people are not taking holiday.  My advice would be for you to find out what the reason might be.  You may not need  to look any further than your mirror.  If you do not take all of your holiday, then you are unconsciously giving out the message that you do not expect other people to do so.

Similarly, is there is a culture in the organisation that people regularly do not take all of their holiday entitlement?  If so, then individuals may be frightened of upsetting their colleagues if they take “too much” time off – even if it is their entitlement!  We all want approval and appreciation from those around us (particularly the boss) and some people may be fearful of the consequences if they do not conform.

What about wellbeing?

 Another major consideration should be the health and wellbeing of your workforce.  People need to have regular breaks from the workplace to maintain their emotional, mental and physical health.    If they are not using all of their holiday entitlement, then they are not getting the most from their opportunities to refresh themselves.

Although it appears that you are getting “more work” from people who are not taking all of their holiday, it may well be that you are actually only getting “more presenteesim”.  They may be in the workplace more often, but will their output be of a high quality? If they are tired, stressed and in need of a break, then they are not likely to be producing their best efforts on your behalf.

But how can I make people take holiday if they don’t want to?

 Of course, you cannot force people to use up their holiday.  But you should be encouraging them to do so.

If you and your managers lead by example and ensure you use up all of your holiday, then your employees will feel comfortable in doing the same.   Make sure you use regular discussion with your employees to reinforce the message that they should be using all of their holiday each year.

Regular reminders about using holiday should be issued during the whole year. You don’t want everyone to leave their holiday until the last minute and all rush to book it in the last quarter of the year.  Regular reminders should help to manage the flow of holiday requests.

Finally, in the third quarter of the holiday year, you could send out a reminder to the whole workforce that there is only limited time to use up their holiday and that you expect them to do so.

Not my responsibility

 You may feel that it is not your job as employer to be reminding people to use up their entitlement.  You do your bit by giving them the entitlement. If they choose not to make use of that, then that is their choice.  This, of course, is true – up to a point.

However, a recent legal case in the EU reminds employers that it is their responsibility “diligently” to give the employee the opportunity to take their holiday and to remind them of their right to take it.

If you think this article is useful and you would like more advice on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

 

Managing Presenteeism – How to Make People Stop Working

People who have worked with me for any length of time know that I have a bee in my bonnet about discouraging long working  hours and encouraging the use of breaks.  I think my colleagues all got sick of me nagging them to leave on time or to go out and get some fresh air at lunchtime.

But I am vindicated by recent research from the CIPD.    Their report shows 86 per cent of respondents to their survey have seen a rise in “presenteeism” over the past 12 months. Over two-thirds reported “leaveism” (people working when they should be on annual leave).

What is presenteeism?

According to Google, presenteeism  is “the practice of being present at one’s place of work for more hours than required, especially as a manifestation of insecurity about one’s job ”.  Most commentators link this to being at work even though sick, and some refer to “workplace presence”.  I believe that it also covers people who work through their breaks, who work long hours, or who work during annual leave periods or public holidays (“leaveism”).

Why do people work when they are sick, or tired?

You may say that you do not ask or expect people to work long hours or come into work when they are sick.  If they choose to do that, then that is their own decision.

Indeed, there may be little pressure from managers for people to exhibit presenteeism.  Many people have a strong sense of loyalty to their co-workers and do not want to cause others to have more work to do because they are sick.  They “don’t feel too bad” so think they can do a day’s work.  Others may feel a loyalty to the organisation they work for and presenteeism is a misguided attempt to “be professional” or to support the organisation or colleagues.

Of course, sometimes managers do put stong pressure on people to perform and get the job done.  Whilst I am sure that every manager would say they do not want people to work when they are sick, they may not understand how implied messages can be misread.

In some industries or areas where there is little other employment opportunity, people are frightened that they may lose their job if they take too much time off sick.  Or they have personal money worries or they fear downsizing or job losses. In a smaller team, people might be afraid that the work will pile up while they are off sick. So they come in before they have recovered, or they work at weekends, to avoid the pressure of a heavy workload. This is common where people feel they have high workloads, deadlines and believe they have little support.

Then, of course, there are people who are addicted to work – “workaholics”.

But surely it is good for an employer to get unpaid work from employees?

Just because someone is in the workplace, they may not be adding a valued contribution to the organisation.  If they are ill or tired, then their productivity will be low. This might even be more costly for the employer than their absence would be.   The quality of their performance will reduce and this could lead to poor judgements which cost time and money to fix.  Not to mention the detrimental effect on their colleagues or poor client relations.

Another issue is poor health – for both the individual employee and their colleagues.  If someone continues to work when ill or exhausted, then they are likely to fall victim to other sickness as their immunity levels will reduce.  They will probably pass their bugs on to colleagues and cause a rash of absence as others have to take time out to recover from a stomach upset or cold which has been  passed on to them.    It will take the individual longer to recover from sickness as they have not taken enough rest. This will make them unpopular with their colleagues who become sick or who have to pick up the workload.  This has the potential to damage general staff morale.

How does this affect the Company?

The Business will suffer reduced quality and volume of work.  In itself this may lead to people needing to work longer hours (a vicious circle) to compensate for time off.  This can lead to reduced staff morale, poor employee engagement and yet further loss of productivity.

There is increasing evidence that the amount of time lost to absenteeism is dwarfed when compared to the productivity lost through presenteeism. A study by The Work Foundation has found that the cost of presenteeism in the workplace could account for one-and-a-half times the cost of sick leave. A separate study in the USA showed that the cost of health-related presenteeism could be as much as ten times that of absence.   And that doesn’t include the people who stay at their desk surfing the internet or checking social media, waiting for their boss to leave.

What can an employer do to prevent presenteeism?

The CIPD report  showed that only a quarter of firms surveyed are taking steps to discourage unhealthy working patterns or tackle stress, which is strongly linked to conditions like anxiety and depression.  A previous JMA HR article has touched on mental health and could help you to tackle depression and anxiety in the workplace.

People managers need to be trained to recognise presenteeism and to discourage it.  For example, technology is widely seen as positive in the workplace, but many people find it difficult to “switch off” outside working hours.  I have known many people who deal with emails late into the night, or even take laptops on holiday so they can keep up with work.  This negates the benefit of having an overnight break or a holiday.  You could consider banning the use of email outside of working hours or after a set time.

Many of us work in high-pressure cultures or deal with heavy workloads.  This can push unwell employees into the office.  It can also lead to people using annual leave and weekends to catch up with a backlog of tasks.  This requires some serious management and job design.  You may well be concerned about the additional cost of an extra salary if you take on more staff.  How much more does it cost for your current employees  to manage the tide by working when they are unfit, only to drown when they are engulfed?  You need to make it a priority to give manageable workloads.

Lead by example

Simple steps to take include sending unwell employees home.  You could also  encourage  – or even enforce – breaks and reasonable working hours.  Make it clear that your Company expects sick employees to stay home and recover. How about sending a “hometime” reminder from the CEO to come up on every computer screen at the end of the working day? The workaholics among your staff may resist this, but they will thank you in the long run.  You will definitely see the benefit yourself.

Deadlines are a factor of the modern workplace and there is probably nothing you can do about that.  There may be occasions when you need people to work late or out of hours.  Keep these to a minimum, rather than an expected pattern.  You will find that people are willing to help you to meet an important deadline.  Then thank them!

A really basic step for business owners, CEOs and managers to take is to be the role model of the behaviour you require.  This is simple, but surprisingly rare.  Your staff will look to you for a lead and they will follow your pattern.  If you work long hours, don’t take breaks and work when you are sick or on holiday, then you cannot expect them to behave any differently.  You are the key to changing the culture.  You are not made of steel, either.  All of the disadvantages that presenteeism brings for your workplace also apply to you.

If you think this article is useful and you would like more advice on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.