Employees have too much holiday, say 25% of SMEs

Around a quarter of small-to-medium employers believe that workers get too much holiday and would like to prune their entitlement by about four days in a bid to cut costs.
 

According to a survey among 403 SMEs undertaken by BDRC Continental Research on behalf of insurance company MetLife, some 27% believe they are too generous with vacations and 25% are considering slashing them back. All full-time workers in the UK have a statutory right to 28 days, including Bank holidays, however.
 
Dominic Grinstead, MetLife UK’s managing director, said: “Employers are starting to question the overall value of their employee benefits package and paid holidays are clearly an expensive part of the package. The ongoing UK economic recovery will rely heavily on SMEs and they need to contain costs.”
 
But he warned that, while most staff would be willing to show flexibility in supporting their employer, they would also expect something in return if they were to lose benefits in this way.
 
“Employers should recognise that commitment and take a wider look at employee benefits in order to gain the maximum value for their business and their workforce because a strategic approach to employee benefits can add real value,” Grinstead said.
 
A second poll among 1,505 employees undertaken by Consumer Intelligence revealed that more than a third would be willing to work longer, but only if they received a pay rise. Almost three out of five did not expect to get one over the next 12 months, however, and 28% had not received one in more than two years.
 
But some 10% of employers said that they had offered staff an enhanced benefit package in lieu of such pay increases, with 48% of the sample being given more paid holiday. Some 42% were offered more flexible hours and 25% increased employer pension contributions. Just over a third of employers also said they were considering whether to offer additional unpaid leave.