Module 1 Objectives At the end of the session, participants will have an understanding of: The current facts about accrued annual leave in Australia The impact of the issue on both employers and employees The types of employees who are typical ‘stockpilers’ Why staff stockpile their annual leave The benefits of regularly taking annual leave Leave liability within your company/organisation
Annual leave accrual affects all businesses across all industries Annual leave accrued by Australian full-time employees: 129 million days $33.3 billion in wages Source: Roy Morgan Single Source September 2011 The Facts
1 in 4 Australian full-time employees have 25+ days of accrued annual leave; and 1 in 3 have 20+ days Leave Stockpilers are most likely to be: Male and older Longer serving employees who typically manage staff Parents of school aged or older children Empty nesters Source: Roy Morgan Single Source December 2008 The Facts
Annual leave is often: Not seen as a critical problem Only reported annually Put into the ‘too hard basket’ Perceived as the employees issue not an organisational one Seen to be ‘harder than it used to be’ to plan and take: –No quiet time of year –More competition –Expectations raised for individuals The Facts
Impact - Employers Financial liability Productivity OH&S issues Inhibits internal transfers Staff retention Adverse organisational reputation Potential increase in sick leave
Impact - Employees Adverse impact on health and well-being affecting productivity ‘Burn-out’ Job satisfaction Absenteeism Commitment and morale
Workplace Barriers 57% of stockpilers consider work related barriers prevent them from taking leave: Workload before and after leave (30%) Lack of resources for cover (26%) Difficulty of scheduling leave when desired (21%) or around projects (21%) Other concerns: –Meeting targets –Job security –Company culture –Management support Source: Jones Donald Strategy Partners March 2009
Personal Barriers 80% of stockpilers cite personal barriers to leave taking –Availability of funds (40%) –Fitting around partner’s availability (28%) –Deliberate accrual for emergencies (26%) or for a big trip (24%) Other concerns: –Family commitments –Not a priority at the moment –Time taken to plan a holiday Source: Jones Donald Strategy Partners March 2009
Additional Barriers Fear of redundancy Fear of change Don’t want to ‘rock the boat’ Desire to demonstrate value Increased workloads Leave seen as ‘Insurance Policy’ Reduced workforce and recruitment freezes Source: Jones Donald Strategy Partners March 2009
Workaholic “I love my job” Victim “They make it impossible” Golden Goal “The big trip/break” Martyr “No one else could do it” Insurance Policy “My security blanket, just in case” Why do people stockpile leave?
Employer Benefits Reduced financial liability Risk management OH&S Increased productivity Staff retention/employer of choice Increased morale Workforce planning Economy
Employee Benefits Physical and mental well-being Avoid burnout Job satisfaction Reconnection and relationships Relaxation New experiences Seize the moment
Discussion Topic: Our Workplace This slide can be tailored to questions specific to your organisation. Suggestions include: What do you feel is our work culture to taking annual leave? Do we encourage it? Is it seen as ‘too difficult’? Hold up a mirror! Do we demonstrate leadership in this space as managers? Do you review/know your staff leave balances? Do you know your own leave balance? Have you thought of the impact of leave stockpiling? On our bottom line – financially in terms of productivity and its impact on staff.
This slide should be tailored to specifically reflect your organisation's data Why is this program so important? Our current annual leave liability is X days or X dollars X% of our staff have <10 days of accrued leave X% of our staff have days of accrued leave X% of our staff have days of accrued leave X% of our staff have 31+ days of accrued leave Discussion Topic: Our Workplace 15