Now, initially, encouraging staff to take more leave doesn’t seem like the brightest idea. After all, if employees are away more frequently, that means more interruptions to projects and workflow. However, while that encouraging your staff to take all their entitled holiday allowance might result them being away at times that are inconvenient from the company’s perspective, it is important to remember that employees have an annual leave entitlement they are legally entitled to under UK law. As an employer or business owner, you have a responsibility to ensure staff take their full entitlement. There are a number of benefits that outweigh this:
Introduction: The Importance of Taking Leave
Taking leave is not just a perk—it’s essential for employee wellbeing and business success. When you encourage employees to take their annual leave, you’re helping them rest, recharge, and return to work with renewed energy and focus. This isn’t just good for individuals; it’s a smart business move. In fact, research from Oxford Economics found that if US employees took just one extra day of earned leave each year, it could boost the economy by $73 billion. The UK and other countries would likely see similar benefits.
Encouraging employees to take annual leave leads to higher job satisfaction, improved mental health, and greater productivity. When employees feel supported in taking time off, they’re more engaged and motivated, which creates a positive culture across the business. By making annual leave a priority, employers can foster a workplace where employees feel valued, leading to better results for everyone. In short, encouraging employees to take their leave is essential for building a healthy, productive, and positive workplace culture.
Fewer sick days
Encouraging staff to take frequent days off is likely to result in them taking less sick leave. Encouraging employees to take regular breaks, as well as their annual leave, is vital for preventing burnout and maintaining health. Having taken the time to recharge their batteries, they’re less likely to fall ill or fall over from stress.
Most importantly, annual leave is arranged in advance and can be planned for, giving you a greater degree of control; the same is not true for sick leave. Skipping breaks and not taking planned time off can lead to increased stress and unplanned absences.
Greater productivity
Similarly, healthier, better-rested employees are capable of getting more done. Taking regular breaks and annual leave is vital for maintaining high levels of productivity and wellbeing. Not only will they perform better individually but, being less stressed, are likely to be more co-operative with their colleagues, improving their productivity as a team. A supportive office environment that encourages time off can further boost productivity and morale.
Plus, less stressed employees are more likely to take care of themselves: eating better, drinking and smoking less, and sleeping better, which also contributes to their productivity.
Better ideas
As well as a physical rest, taking holiday is a crucial aspect of employee wellbeing and creativity, giving staff a mental break too. When they return, it’s possible they’ll do so with some great ideas in tow – especially if they actually went somewhere for a getaway. These could be far-reaching ideas that end up benefitting the company from the top-down, or little ways of doing things differently that make them more effective at their own job.
To support this, employers can follow practical steps to encourage staff to take their holiday entitlement and return with fresh ideas.
Increased morale and employee wellbeing
Firstly, actually encouraging workers to take leave reassures them that you have their interests at heart, making them feel more positively towards the company. In an ideal world, most employees would take their full annual leave entitlement without prompting, but in reality, managers need to set a good example by taking their own leave. Also, as everyone, on the whole, is less stressed and better able to get along, your workplace culture will better too. Over the long-term, this will result in greater company loyalty and a lower turnover rate. Most employees tend to take fewer holidays than they are entitled to, and managers play a key role in encouraging a positive culture around leave.
Sharing of responsibilities
In smaller companies, small business owners and their teams often face unique challenges in taking leave and managing workloads, especially when only a couple of employees take care of a particular business function, such as sales or HR. There might be scope for their colleagues to cover for them. This offers the opportunity to expand their skill set and competence, which is a real motivator for employees that like to learn and need stimulation.
However, when an employee works excessive hours or has too much work, it can result in large amounts of unused annual leave, leading to increased stress and potential burnout.
Plus, as well as adding value to your employees, you’re making the company more robust and efficient, as you’re removing the bottleneck of only one person being capable of performing certain tasks. Taking time off, including bank holidays, can also help strengthen relationships among colleagues and improve overall team dynamics.
Company Culture and Leave
Company culture has a huge impact on whether employees feel comfortable taking their annual leave. In a positive culture that encourages employees to take time off, you’ll see increased productivity, higher job satisfaction, and better employee retention. However, many employees hesitate to take holidays because they worry about workload, coverage, or how their absence will be perceived.
Employers should take the time to audit their company culture and understand why employees might be reluctant to take leave. Are there unspoken expectations about always being available? Do employees feel supported when they request time off? By addressing these concerns and providing the right support and resources, businesses can create an environment where taking leave is not only accepted but encouraged. This commitment to employee wellbeing helps build a positive culture, strengthens relationships within teams, and ultimately leads to a more productive and satisfied workforce.
The Role of Managers in Encouraging Leave
Managers are key to creating a workplace where taking annual leave is the norm, not the exception. When managers lead by example and take their own paid annual leave, it sends a clear message that rest and wellbeing are valued. Managers should regularly communicate the benefits of taking leave, encourage employees to book time off, and make it easy for them to submit leave requests.
It’s also important for managers to be aware of the legal requirement to provide employees with their full holiday entitlement. By supporting employees in taking their entitled leave and ensuring workloads are managed in their absence, managers help create a positive culture that prioritizes mental health and employee wellbeing. Employers should equip managers with the tools and resources they need to handle leave requests efficiently, so employees feel supported and confident in taking time off. When managers actively encourage employees to take leave, it benefits the entire business—leading to happier, healthier, and more productive teams.
