Though the pandemic is far from over, lockdown restrictions in the UK have been lifted and lots of UK workers are eager to take a well-deserved holiday. What’s more, lots of employees have been saving their annual leave allowance for when they’re able to take a proper vacation.
However, while this is great news, this also means a lot of businesses are going to have to navigate the unprecedented backlog of annual leave that their employees are entitled to. Many businesses, especially SMEs, are facing these challenges. Furloughed employees, who continued to accrue annual leave during the pandemic, also contribute to this backlog. Many companies will find themselves in situations where too many employees will request holidays at the same time, leading to a surge in holiday bookings and making it difficult to manage these requests efficiently. This will pose a challenge as businesses attempt to balance operational considerations with the need to treat their employees fairly, as well as legally.
With this in mind, this post discusses how to manage the annual leave backlogs and bottlenecks your company may encounter.
Introduction to Annual Leave
Annual leave is a cornerstone of employment, ensuring that employees have dedicated time away from work to rest and recharge. In the UK, full-time workers are entitled to a minimum of 28 days of annual leave each year, which includes bank holidays. Understanding annual leave entitlement is essential for both employers and employees, as it supports a healthy work-life balance and helps maintain business continuity. A robust annual leave policy not only clarifies how leave requests are handled but also helps prevent misunderstandings and backlogs. By setting clear expectations and processes, businesses can ensure that annual leave requests are managed fairly and efficiently, leading to greater employee satisfaction and a more resilient organization.
Annual leave carry over
The main contributor to potential holiday backlogs and bottlenecks is the change to rules regarding annual leave carry over.
As per the Working Time (Coronavirus) (Amendment) Regulations 2020, employees can carry over up to four weeks of annual leave, specifically annual leave days, into the next two years. This affects their holiday entitlement for both the current and following leave year, meaning businesses could have staff with as much as double the amount of time off to play with as usual.
This is then exacerbated by the fact that, by and large, everyone’s ability to take a holiday has been hampered by lockdown restrictions. Sure, lots of employees will have taken a day off here and there while working from home, but as they were forced to spend their leisure time in the same place they work, it’s not the same due to an always-on culture.
Most significantly, it’s not as psychologically nourishing and physically replenishing as taking a proper holiday. This all amounts to your staff being highly motivated to save up their annual leave entitlement for when they truly get to enjoy it. As restrictions ease, there is likely to be a surge in booking annual leave and a significant influx of holiday requests that employers must manage, including the potential benefits of encouraging staff to take more leave.
Consequently, this all adds up to a situation where many employees have lots of holiday days to take and could request it at the same time as their colleagues. However, if companies authorise too many of these requests, it could lead to operational problems, as they’ll be an insufficient number of employees doing their jobs – and at a time when lots of organisations are struggling as it is! The approval process for these holiday requests becomes critical, and managers face the challenge of approving leave fairly and efficiently during a potential backlog.
Communicate
Above all, ensure clear communication with your staff regarding annual leave policies and expectations. Explain that there may be situations where the company might have to refuse their annual leave request. More importantly, make it abundantly clear that this isn’t done lightly: that you empathise with them – what they’ve been through and still going through. Communicate that you understand their need – and right – to time off.
But then also explain that if you were to authorise all their requested leave, there might not be a company for them to come back to! Clear communication, both in policy and practice, shows that you’re not making rules up as you go along or, worse, victimising them by refusing their request for time off.
Request that staff take leave
You could, quite simply, ask some of your employees to take annual leave to help clear the backlog. This is especially plausible for businesses who typically have quieter periods or are now less busy due to COVID-19 and don’t require as many hands on deck.
You might have provisions in your employment contracts that enable you to request that staff take time off, at certain times of the year, such as Christmas. Alternatively, you can rely on statutory notice provisions whereby you’re required to give twice the amount of notice as the length of holiday you want the employee to take, e.g., 2 weeks’ notice to take a week of annual leave. For certain types of statutory leave, such as parental bereavement leave, employees are entitled to two weeks of paid time off under the Parental Bereavement Pay Regulations 2020. In any case, you’re well within your legal rights as an employer to ask employees to use some of their annual leave or to consider taking leave where appropriate.
Now, despite this, it’s understandable that you may be reluctant to employ this measure – for the sake of employee relations and morale – but it’s something you can fall back on if you need to. Just be clear about your reasons and that it’s for the good of the company.
Buy back holiday
If you provide annual leave in excess of the minimum statutory entitlement, you could offer to buy back a few holiday days, i.e., paying employees for the monetary value of the leave instead of them taking the time off. Some companies also reward employees for long service by granting additional leave based on their duration of employment, and these extra days can sometimes be included in holiday buy-back schemes. This option could end up being mutually beneficial, particularly for employees who are experiencing financial strain and would prefer the increased renumeration than the time off.
ScheduleLeave’s staff holiday planner is an invaluable tool for keeping track of your staff’s outstanding annual leave entitlements and getting ahead of backlogs and potential bottlenecks. Sign up for your free trial today.
Technology and Leave Management
Modern technology has transformed the way businesses manage annual leave. Automated leave management systems make it easy for employees to submit leave requests and for managers to approve or decline them promptly. These tools provide real-time visibility into who is on leave, which supports effective workforce planning and helps avoid situations where too many employees are away at the same time. Automation also reduces the risk of errors and saves valuable time for HR teams. By streamlining leave management processes, businesses can reduce administrative costs, respond quickly to requests, and ultimately boost employee satisfaction by making the process transparent and efficient.
Monitoring and Evaluating Leave Management
Continuous monitoring and evaluation are key to effective leave management. Employers should regularly track metrics such as annual leave utilization rates, employee satisfaction, and the impact on business continuity. Analyzing this data provides valuable insights into how well the annual leave policy is working and highlights any areas that may need improvement. Regular evaluation helps prevent annual leave backlogs by ensuring employees are taking their allocated time off, which is vital for maintaining both physical and mental health. By staying proactive, employers can adapt their leave policy to better meet the needs of their workforce and the business.
Ensuring Business Continuity
Managing annual leave effectively is crucial for ensuring business continuity, especially during peak holiday periods. Employers should forecast staffing needs in advance and use technology to manage leave requests and approvals efficiently. Real-time access to employee availability allows for better planning and ensures that there is always adequate cover, even when multiple employees are on leave. By taking a proactive approach to leave management, businesses can minimize disruptions, maintain productivity, and continue to meet their operational goals, regardless of when employees take their annual leave.
Best Practices for Leave Management
Adopting best practices in leave management helps businesses avoid annual leave backlogs and maintain a positive workplace culture. Employers should encourage employees to take annual leave regularly, provide clear guidelines on how to request time off, and ensure fair treatment for all staff. Effective workforce planning, open communication, and a clear policy are essential for managing leave requests and supporting employee satisfaction. It’s also important to consider the potential cost of backlogs and offer additional support to employees who may need it. By prioritizing regular breaks and fostering open communication, businesses can promote a healthy work-life balance, improve employee well-being, and ensure business continuity.
