JOHANNESBURG, 11 June, 2020 — One in three (33%) South African businesses has had to change their staff holiday policy due to COVID-19, and a further quarter (25%) is thinking of doing so, according to research by Willis Towers Watson (NASDAQ:WLTW), a leading global advisory, broking, and solutions company.
The issue has arisen because, understandably, many people are unwilling or unable to book their usual holidays during the global pandemic, either because of travel uncertainty or restrictions, or because they feel that taking time off during the upheaval would be a waste of annual leave.
The Willis Towers Watson survey, which looked at HR issues caused by COVID-19, also asked businesses what they will do about unused or excess holiday leave. Half (52%) said they will allow it to be carried over into the next holiday year. 12% said that any unused leave will be lost, and 6% said they will buy unused days back from their staff. However, almost a third (30%) said they were still unsure what to do.
“Too many people are sitting on a growing pile of unused holiday, and that’s becoming a headache for many businesses.”
Melanie Trollip,
Director of Talent and Reward,Willis Towers Watson South Africa
Melanie Trollip, Director of Talent and Reward at Willis Towers Watson South Africa, said:
“Too many people are sitting on a growing pile of unused holiday, and that’s becoming a headache for many businesses." The risk is that everyone wants to take time off once the crisis has eased and the economy is starting to recover. That could create a lot of disruption and bottlenecks, just when staff are needed the most.
“Managers should discuss this with their staff and decide the best way of coping with the holiday glut. The solution will vary from company to company, with many opting to let staff carry leave forward, or to be more generous in the amount that can be carried.
“Some businesses have offered to buy holiday days back from staff, but that may be difficult for many in the current economic climate. Many businesses are being less flexible – they are setting dates when holidays must be taken or are running a ‘use it or lose it’ approach.”
“It is really important that people take time off for their wellbeing and health, even if it does not involve a long holiday that involves travel. During the pandemic, we may need to rethink our approach to holidays a little. Staycations and more long weekends may be a way of using leave up.”
Unused leave that is carried over can create financial issues for a business too, because accrued leave pay is registered in a company’s accounts as a liability.
Melanie added: “Unused holiday can damage a company’s balance sheet because it will offset any profit at year-end, which could drag profits downwards and suggest a worse year than was actually the case. Firms of all sizes need to watch out for that if they are allowing large amounts of leave to be carried over.”
Willis Towers Watson surveyed a diverse range of employers based in South Africa for its 2020 COVID-19 Pulse Survey, which was conducted during mid-May 2020. The 212 respondents from South Africa employ about 845,000 employees globally.
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets.
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