Thames Valley: Companies worried about holidays

Thames Valley entrepreneurs fear that the extension to holiday entitlement for UK workers will damage their bottom line.

New research from entrepreneur think tank, the Tenon Forum, reveals that nearly two thirds of SME bosses say the new legislation will reduce profitability and nearly half (46%) think that it will slow workplace productivity. Seven in 10 say it will make more work for them.

While 69% say more holiday would make staff healthier and happier, only 42% believe the culture in their workplace would be improved and only 33% say that staff would be more productive.

Nearly a quarter (21%) of South east entrepreneurs currently offer staff an average three to four weeks’ annual leave a year, the Tenon study finds, with over half (54%) providing four to five weeks. Only 18% provide five to six weeks holiday.

Despite their fears, three quarters of the regions’ owner managers cite work life balance as a priority for their business and are embracing it in myriad ways. 85% of these offer their staff flexible working hours, six in 10 provide an annual leave allowance in excess of holiday entitlement, whilst 46% allow home and remote working, and two thirds hold regular company social events with a third giving employees time off to undertake voluntary work.

Strongest advocates for achieving healthy workplace equilibrium are those entrepreneurs running businesses in London, the South East and the East of England (79%) and those in the construction sector (80%).

Tenon Forum spokesman Sandy Kerr, at Tenon, said: “Without doubt, the nation’s entrepreneurs will face some major commercial challenges with the government’s extension to annual compulsory leave entitlement taking place. UK SMEs face considerable demands on their time and resources, making it all the more impressive to see so many embracing the importance of achieving a healthy balance between home and work life for their employees.”