To holiday or not to holiday? Why taking time off still matters

To holiday or not to holiday? Why taking time off still matters in summary:

• Only 35% of UK employees used their full annual leave in 2024.
• Many avoid holidays due to workload pressures, fear of falling behind, or cultural expectations.
• Employees who take all their leave see up to 40% higher productivity and 28% fewer sick days.
• 42% of staff shortages are cited as a key barrier to holiday usage.
• Businesses should promote flexible leave policies and encourage early planning.
• Absence management tech makes booking, tracking, and reporting leave much easier.
• A culture that values rest = healthier, happier, and more engaged employees.

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Holidays have always been a hot topic in the workplace – even when the kids have gone back to school and the nights have started getting longer.

Back in 2014, research from the Institute of Leadership and Management (ILM) showed that 40% of managers didn’t use all their annual leave, while 80% admitted to working while away. Fast-forward to today, and the issue of ‘holiday hoarding’ hasn’t gone away. Just 35% of UK workers took all their entitled annual leave last year, and worryingly, two in five are taking less time off than before the pandemic.

If anything, the rise of remote and hybrid working has made it harder to disconnect. With laptops on the kitchen table and work emails pinging phones day and night, the lines between “holiday” and “working holiday” have never been blurrier. And if I’m honest, I’ve been guilty of dipping into my emails at weekends and even when on holiday. Hardly the best example to set, is it?!

But here’s the truth: taking time off isn’t indulgent – it’s essential. For employees, it means rest, balance, and recharging. For businesses, it means sharper thinking, better productivity, and fewer cases of burnout – and the data backs this up: when people use their full leave – without exception – productivity can increase by up to 40%, while sick leave can drop by as much as 28%.

So, given the importance of switching off, why aren’t we taking full advantage of our annual leave? And, what can HR leaders do to change this potentially damaging culture?

Why UK employees don’t use all their holiday

Compared to some of our European neighbours, UK employees are still reluctant to take their full allocation of annual leave. Some of the reasons are cultural and ingrained, which include:

• Presenteeism – people worry about looking less committed if they take time off.
• Workload pressure – many employees worry about falling behind or facing an overwhelming inbox when they return. And, in today’s economic climate, there’s also the added pressure to be seen as indispensable – always available, always working.
• Technology creep – hybrid working has blurred the boundaries, making it easy to “just check in” on emails while away.

The result? Staff stay at work longer, take fewer breaks, and risk burnout – all while employers lose out on the benefits of a rested, motivated workforce.

Why time off is good for business

Time away from work isn’t just good for employees, it’s a competitive advantage for employers. Regular breaks have been shown to:

• Boost productivity. Well-rested employees return sharper and more efficient.
• Improve wellbeing. Stress levels fall, sleep improves, and overall health gets a lift.
• Spark creativity. Distance from day-to-day tasks allows space for new ideas.
• Increase retention. Employees are more likely to stay with organisations that value balance.

Burnout costs UK businesses billions every year in lost productivity and turnover. And, from a human perspective, it drains energy, erodes wellbeing, and leaves employees disengaged and disconnected from their work. So, encouraging time off isn’t just an act of kindness – it’s actually sound business strategy.

When holidays don’t feel like holidays

Of course, not all holidays feel restorative. Employees often talk about the stress of:

• Clearing the decks before leaving.
• Facing a mountain of emails on return.
• Feeling guilty about colleagues covering in their absence.

It’s not just work that can make annual leave feel like another job on the to-do list. Family responsibilities, travel stress, or the pressure to cram too much into one week can leave people coming back just as tired as when they left. That all-too-familiar feeling of needing a holiday to recover from your holiday? Yep… it’s more common than you’d think.

This is where leadership really matters. Leaders who actively encourage time off – and model it by switching off themselves – send a clear signal that holidays aren’t a luxury, but a necessity.

Rethinking holiday policies: flexibility, not frenzy

The traditional “use it or lose it” annual leave policies can backfire, leading to rushed absences at the end of the year or staff feeling resentful when days are lost. Instead, organisations should build flexibility into their approach:

• Allow some carryover of unused leave into the next year.
• Encourage early planning so teams can stagger absences.
• Use absence data to identify employees not booking time off – a potential red flag for burnout.

Modern HR systems that include integrated absence management software make this all much easier, showing managers who’s off when, who still has days left, and where pressure points could occur.

How HR tech makes time off easier

Absence management tools have transformed the way HR teams operate over the past decade. Today’s systems do far more than just log holiday requests: they actively encourage employees to use their leave and take the stress out of planning. In fact, they can empower staff to manage their own time off with confidence – giving them visibility of remaining entitlement, access to team calendars to avoid clashes, and the reassurance that everything is recorded accurately.

For line managers and HR teams, that means fewer manual headaches, better oversight, and more time to focus on strategic priorities rather than chasing paper forms or reconciling spreadsheets.

Key features of modern absence management systems include:

• Employee self-service: staff can book leave instantly without chasing managers or HR by email.
• Team calendars: managers can see at a glance where absences overlap and can have better confidence in resource planning.
• Reporting tools: highlight employees at risk of burnout by tracking patterns of unused leave.
• Payroll integration: ensures holiday pay and records are updated automatically, reducing errors.

By making absence management simple and transparent, businesses remove barriers that stop employees taking holidays, and encourage a healthier culture of rest.

Building a modern holiday mindset

Encouraging staff to take leave isn’t just about systems and policies, it’s about changing attitudes. A modern holiday culture looks like this:

• Switching off is normal
  Leaders model it by unplugging completely when they’re away.
• Communication is clear
  Teams plan ahead, ensuring workloads don’t pile up before or after leave.
• Wellbeing is valued
  Time off is recognised as a core part of employee health, not an optional perk.
• Balance is respected
  Holidays don’t have to be exotic trips away! Even a quiet week at home binging the latest must-watch television series counts as rest.

Practical steps for HR and payroll leaders

Want to support better holiday habits in your organisation? Here’s a quick checklist to start with:

1. Promote leave throughout the year – not just in December when everyone realises they’ve got 10 days of unused annual leave left.
2. Spot underuse early – use your absence data to identify employees who aren’t taking holidays and encourage them to use their annual leave.
3. Make it easy – ensure your HR software streamlines processes, bookings, approvals, and tracking.
4. Plan properly – managers should stagger leave to avoid resource gaps and uneven workloads.
5. Set the tone – encourage leaders to unplug completely when on holiday.

So, are you needing a break?

Honestly, the question of “to holiday or not to holiday” shouldn’t even exist anymore. The evidence is clear: time off is essential to both individual wellbeing and organisational success.

The world of work has changed a lot over the past decade: hybrid working, new tech, new expectations. But that only makes the need for genuine breaks even greater. So, encourage employees to take their holidays. Give them the tools to manage time off without hassle. And most importantly, lead by example. Because when people rest well, they work well – simple!