The Importance of Taking Your Full Annual Leave

When it comes to employee benefits, annual leave is often seen as standard – a set number of paid days off each year. Yet research shows many employees across the UK aren’t using their full entitlement.

According to data from Access PeopleHR, there was a 7.7% drop in annual leave taken by UK workers between 2022 and 2023. That’s a worrying trend, especially as rest and recovery are directly linked to employee wellbeing, productivity, and talent retention.

So why should you use your full entitlement – and how should employers encourage it?

1. Annual Leave Boosts Productivity

Time away from work helps you return refreshed, more focused, and ready to perform at your best. Rested employees make fewer mistakes, bring new ideas, and often deliver higher-quality work.

For recruiters and HR leaders, this directly links to stronger business performance and employee engagement.

2. Time Off Reduces Burnout Risk

Reports show that 82% of employees are at risk of burnout in 2024. Burnout leads to absenteeism, lower performance, and higher staff turnover.

Encouraging employees to take leave helps prevent chronic stress – one of the main causes of burnout – making it an essential part of any talent retention strategy.

3. Mental and Physical Health Benefits

Annual leave is vital for overall employee wellbeing. Breaks from work lower stress, improve mood, and even reduce the risk of long-term health conditions. A healthier workforce is a more engaged and motivated one.

4. Higher Job Satisfaction and Loyalty

When employers promote work-life balance, employees feel valued. This leads to higher job satisfaction, stronger company culture, and improved employer branding – all critical in today’s competitive recruitment market.

Not all employees want extended holidays – but rest is still important. Employers can encourage recovery in other ways:

• Carry Forward Holiday Leave – Flexibility to use leave later in the year
• Time Off in Lieu (TOIL) – Rest days for overtime worked
• Flexible Working Hours – Compressed weeks, hybrid schedules, staggered hours
• Frequent Short Breaks – Encouraging micro-breaks during the day to recharge

In modern recruitment, candidates want more than salary. Work-life balance, wellbeing benefits, and flexible working policies are now top priorities.

Employers that encourage staff to take leave strengthen their employer value proposition (EVP), making them more attractive to top talent while improving retention rates.

Annual leave isn’t just a perk – it’s essential for a successful career and a thriving workplace. For employees, it’s a chance to reset and return stronger. For employers, it’s a proven way to boost productivity, engagement, and retention.So don’t let your holiday days go to waste. Using your full entitlement benefits both your career development and your wellbeing – and that’s something every employer should actively encourage.