Bosses would like to cut an average of four days' paid holiday
Private sector employers are considering decreasing holiday employment entitlement in order to reduce their costs.
A study by insurance provider
Metlife showed that over a quarter (27 percent) of bosses believed that they gave their employees too much paid time off for holidays. Almost all of that 27 percent said that they were considering cutting the amount of paid holiday they gave their employees.
Full-time workers are legally entitled to 28 days’ holiday per year, including bank holidays.
Employers considering cutting holiday entitlement said that they would take away four days’ holiday entitlement, on average. However, over a third (36 percent) of employers said that they would consider offering extra unpaid leave in place of paid holiday.
The study also revealed that over a third of employees would happily work longer hours, but only if they were to receive a pay rise. However, just fewer than 60 percent said that they did not think they would receive a pay rise in the next year.
Almost a third (28 percent) of the 403 respondents last received a pay rise over two years ago. Private sector pay rises are currently at a level of three percent – well below the UK’s current rate of inflation of 4.5 percent. Public sector workers are facing a pay freeze and may receive no pay rises in the foreseeable future.
Dominic Grinstead, managing director of MetLife, 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. Employees are willing to be flexible to support their employer but will want something in return.
He continued: “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, as a strategic approach to employee benefits can add real value.”