Latest research has shown that more than half of holidays are left untaken globally.

This meant that in November 2021, 41% of employees had 55% of their annual holiday allowance left – which on average was 14 days holiday with just 59 days to use it in!

In this blog, we’ll look at what not using holiday means in real terms for both employees and businesses and what can be done to prevent the problem spiralling into 2023.

Issues for employees

Not taking time out has a negative impact on an employee’s wellbeing, which can lead to burnout and long term illness. Annual leave is necessary to give employees time to relax, recover and recharge. If it isn’t regularly taken, it can result in needing significant time off work for health reasons, which can lead to reduced earnings and money worries.

Issues for businesses

Issues with soaring sickness levels, staff facing burnout and employees on long term sick leave is a big concern for businesses, as it results in staffing issues.

If left under-resourced and unable to cope, businesses’ service and reputation will suffer, profits will plummet and businesses may be forced to close.

If large amounts of holiday are carried over into the following year, it can be difficult for businesses to manage resources and staffing issues will be repeated the following year.

Impact of the pandemic

As a knock on effect of the pandemic, it’s estimated that employees had 50% more holiday entitlement in 2021 compared to 2020, as unable to use it, they rolled it over to the following year.

The industries that need to see a rapid return to profit after being most badly affected during the pandemic, continue to be hit hard by staffing issues.

The entertainment, media and arts industry saw the biggest backlog of holiday allowance with 79% globally still waiting to be taken.

Vicious circle

It’s a vicious circle, as if unused holiday and the risks of staff burnout aren’t addressed, key trading periods will be compromised and burnout in the industry will rise quickly, as remaining staff struggle to make up the shortfall.

If companies don’t manage annual leave properly, they will continue to experience challenges resourcing their team and put added pressure on employees.

Plan for 2023

Now is the ideal time to implement an absence management solution, to correctly manage staff holidays and prevent the same issues being repeated in 2023.

LeavePlanner’s absence management system allows businesses to keep on top of outstanding leave, helping to prevent burnout, long term illness or absence.

The easy-to-use software allows employees to raise leave requests and monitor the online holiday calendar in real time, whilst managers can quickly view, approve or decline leave requests for every employee. Reports can be viewed in real-time, allowing administrators to set staff leave limits and maintain the correct staffing levels.

For absence management software that is cheaper than a cup of coffee, call us on 01252 636 070 or email Arrange your free trial today!

For any queries, call Steve on 01252 636 070 or email