Aussies hoarding leave
Adam’s situation is far from unique. A 2024 report from HR and software company ELMO, Employee Sentiment Index, found Australian employees have 160 million days of annual leave banked. The index included a survey of 1000 employees from July to September 2024.
More than a fifth – 22 per cent – of Australian employees have accrued four weeks or more, while the average employee has just under 16 days of annual leave accrued. The data also revealed 43 per cent of employees are feeling burnt out, and 43 per cent report their workload has increased.
Gen Z employees are feeling the pressure more than their older colleagues, with 52 per cent of respondents feeling burnt out by the end of 2024.
Of those employees, 61 per cent said they felt there was a barrier to going on leave, saying they were too busy at work, while 18 per cent said they couldn’t afford to go away on holiday.
Job security and the current economic climate contributed to employee mindsets, with 29 per cent of surveyed workers anticipating redundancies in the next quarter and 38 per cent feeling they need to work longer and harder to keep their jobs secure.
Loading
The ripple effect
HR expert Constance Aloe, founder of Distinctive People, said that when leave goes untaken, the ripple effects hit productivity, error rates, turnover and ultimately the bottom line.
For example, Aloe adds that in NSW, it’s been reported that psychological injury claims make up 12 per cent of all workers’ compensation claims but account for 38 per cent of scheme costs, with the average psychological claim rising to around $288,542 in 2024-25.
“Employees who never truly switch off risk burnout, psychological injury and long-term absence – a far higher cost than the unused leave days,” she says.
*Name changed to protect privacy.
Get workplace news, advice and perspectives to help make your job work for you. Sign up for our weekly Thank God it’s Monday newsletter.
