No Leave, No Life - Australian employees stockpile 70 million days of Annual Leave
Tourism Australia releases findings of Australia’s largest ever National study on annual leave accrual
Tens of thousands of Australian employees need a holiday but are reluctant to take one according to a new comprehensive research study commissioned by Tourism Australia and released in Melbourne today.
According to Scott Morrison, Managing Director, Tourism Australia, annual leave accrual has become one of the hottest workplace and social issues around.
“We are looking at a situation where Australians have now stockpiled a staggering 70 million annual leave days” (AC Nielsen, 2005), or 14 million weeks equating to around $11 billion dollars in wages” Mr Morrison said. “We’re hoping to unlock some of those 70 million days and convert them into great Australian holiday experiences.”
Mr Morrison announced the findings along with a new employee pilot program, No Leave, No Life, developed in partnership with the Australian Human Resources Institute (AHRI). The innovative new pilot program will involve 11 Australian companies who participated in the research and will be an important step in addressing the issue of annual leave stockpiling.
Tourism Australia brought together a diverse range of companies to participate in the research and the pilot program, including AAPT, National Australia Bank, SA Health, Swimming Australia, Colonial Tram Car Restaurant, Paslode Australia, Visa, Blackmores, Opera Australia and Gilbert & Tobin, in addition to three companies who have chosen not to be named because they want to wait until their program is rolled out internally.
In an Australian first, the country’s largest ever study on annual leave accrual revealed that workplace issues were the main barriers to employees taking the great Aussie break.
The research findings were consistent across 13 large, medium and small companies, public and private, employing more than 300,000 employees – annual leave stockpiling has become entrenched workplace behaviour and not surprisingly it’s work that’s stopping us from taking the great Australian holiday.
Around 40 per cent of respondents cite workplace issues as the most significant barriers, while less than 25 percent said that they accrued leave due to personal issues.
“These figures should ring alarm bells throughout Australian businesses that for too long have pushed annual leave accrual to the bottom of the agenda,” said Mr Morrison.
“Annual leave stockpiling has critical ramifications for businesses, individuals and the economy. Australians using 20% of their accrued annual leave on interstate holidays would result in:
14 million extra leisure nights – an increase of 14%
$2 billion increase in leisure expenditure – an increase of 12.5%
“The financial liability of businesses is growing, employees’ health and stress levels are deteriorating and broader industries such as domestic tourism are suffering, as Australians choose to stay at work rather than take a well-earned break,” said Mr Morrison.
Tourism Australia conducted the survey to gain a greater understanding of the issue of annual leave stockpiling and how the reduction of accumulated annual leave could be used to stimulate domestic tourism.
“Fundamental to the role of Tourism Australia is the fostering of a sustainable tourism industry in Australia, motivating Australians to travel locally and enjoy all the experiences our great country has to offer,” Mr Morrison said. “If holidays go unused due to the pressures of the workplace and the personal constraints, ultimately this will have a flow on affect to our domestic tourism industry.”
AHRI executive director, Jo Mithen said, "Stockpiling annual leave is a lead indicator of problems in an organisation, and should be recognised as such.
"In the interests of workplace productivity as well as individuals' mental refreshment and general health, it is important that annual leave be taken seriously by business. During this time of skill shortages, employers who want to retain their talented workers increasingly need to be seen as employers of choice.
“Employers who impose a culture of 'work first at all costs' are not investing in their people and will lose them to competitors who have a culture of looking after their human capital," Jo Mithen said.
Elizabeth Hunter, National Australia Bank, Executive General Manager People & Culture said, ”We participated in the research to get a better understanding of why some of our people were stockpiling their annual leave, confident the survey would help us really get to the root cause of the issue.
“As the survey results have shown us, workplace factors are key to people taking their leave. For an organisation of our size and geographical spread there is no quick or easy solution. Working closely with people across all parts of our business will be critical to our success as a 'one size fits all' approach won't be enough to affect any real change.
“The health and wellbeing of our employees is important to us. Being able to better support our people to take a break by addressing underlying causes will be part of our cultural change journey,” Elizabeth Hunter said.
Another Pilot Program participating organisation, the South Australian Department of Health, with a 30,000 plus workforce commented on its participation in the program.
“We are particularly delighted to be able to represent public sector organisations in this initiative. Across Australia, the public health sector is endeavouring to create and sustain a quality workforce that can readily respond to the health, well being and infrastructure needs of our communities,” said Dr Tom Stubbs Acting Chief Executive, SA Department of Health.
“It sounds trite but is nevertheless true that the most valuable asset in the Department of Health is it people. Their health, safety and welfare are of primary importance and rank equally with all other financial and operational considerations
“A healthy workforce is an outcome of good management, sound physical infrastructure and strong social networks. But this relies on a planned and coordinated approach in partnership with our employees. The promotion of the No Leave No Life program will provide a vehicle for staff to identify and achieve their health and social goals through effective leave management,” Dr Stubbs said.
More than 60 percent of full-time Australian workers do not use their full annual leave entitlement in a year and more than one third of full time workers do not take any annual leave in a year at all. (Tourism Australia Project Epic Phase 1 Report)
Lack of resourcing and back up while on leave is cited as the most significant barrier to taking leave (48 percent). Employees also suggest that it’s in fact too much like hard work to take a holiday – 46 percent indicating that the increased workload before and after leave makes the holiday less than worthwhile, particularly working through the email build upon return from leave.
On the personal front, fitting travel and holiday plans around a partner or travel companion is a barrier for 33 percent of respondents, while a further 22 percent cite children’s commitments a barrier to taking leave. Even the time to organise a holiday becomes a barrier, with 18 percent finding it difficult and a further 7 percent being simply overwhelmed by the choice available to them.
Accounting firm KPMG’s Head of Finance, Tony Busuttil, said that the cost to Australian businesses of stockpiled leave can no longer be ignored.
“The accumulation of annual leave is a growing financial liability on the balance sheets of Australian business.
“What’s more it is important to note that this problem escalates as salaries increase over time, and companies must re-value their annual leave liability.
“ In other words, businesses end up paying today’s unused annual leave in tomorrow’s dollars at tomorrow’s salary levels.
“Businesses must also consider the indirect costs associated with employees not taking annual leave; lower productivity, employee burnout, turnover and related re-hiring and re-training, which all come at a cost. ”Tony Busuttil said.
According to workplace health and well-being expert Professor Ron Penny, Professor of Medicine, St.Vincent’s Clinic and Medical Director, Good Health Solutions, employers that chose to ignore or discount the importance of annual leave expose themselves to the greater chance of employee burnout, lower productivity and eventual turnover.
Professor Penny said, “The workplace has become an increasing health hazard due to the erosion of the division between work and home and personal life. The impact of this division increases not only the stress but also the risk of chronic diseases attributable to poor eating, diminished physical activity and domestic disruption, which can affect sleep and increase the use of alcohol and other drugs. Chronic disease leads to premature retirement due to illness, premature death and a reduction in the workforce as well as significant effects on productivity. Anxiety and depression are an increasing and serious problem in the workplace.”
He also said, “Tourism Australia’s research has clearly shown that an unacceptably high number of employees are putting their long-term health at risk by deferring or eliminating leave.
“Repeated studies have shown that the recuperation from these health risks is improved by leisure leave. In those at risk, significant reductions in serious health events such as heart attacks are identified following appropriate leave. Ongoing health maintenance following leave is an important strategy to maximise the benefits of that leave. Of interest one study identified that best outcomes from holidays related to going to a warmer climate, having fewer time zone changes and participating in health improvement while on leave.”
It is clearly evident that maintaining balance continues to be a top priority for most workers, but technology and increasingly strenuous employer expectations have eroded the concept of traditional office hours, vacations and personal time for many
A key outcome of the research has been the development of an innovative new employee program called No Leave, No Life aimed at reducing the country’s annual leave burden and boosting domestic travel.
In an Australian first, Tourism Australia has partnered with AHRI to give companies real tools that can be used to help address the issue of annual leave stockpiling.
CEO’s of 11 Australian companies that participated in the survey are embracing a culture that encourages the take up of annual leave, joining together to trial No Leave, No Life and push annual leave up the business and social agenda.
No Leave, No Life gives Australian companies and employees all the help they need to plan for and take annual leave.
Employees in the pilot program will have access to specifically designed web based travel and telephone assistance that will help them plan for their leave, as well as fantastic Australian travel experiences developed exclusively for No Leave, No Life participants.
“We’re making it easier for employees to take the leave they need, putting annual leave on everyone’s agenda – sharing the responsibility and commitment from CEO down.
“A very important ingredient in our No Leave, No Life program is a menu of sensational, specially tailored holiday packages from Qantas,” Mr Morrison said.
Mr Morrison concluded by saying: “No Leave, No Life will be rolled out in the 11 pilot companies until October 2006, at which time it will be reviewed with a view of a potential national roll out with other interested companies.”
Tourism Australia is the Federal Government statutory authority responsible for international and domestic tourism marketing as well as the delivery of research and forecasts for the sector.
To view the online fact sheets about the 'No Leave, No Life' prgram, click here.
For more information please contact:
Royce: (03) 9639 2300
Peter Mahon 0418 351 754
pjm@royce.com.au
Julie Browning 0419 003 063
jmb@royce.com.au
2 May 2006 |
