Workers are increasingly holding back from taking their annual leave, according to new research that suggests the trend is becoming a potential workforce well-being issue. As more employees postpone or forgo time off altogether, employment experts are warning that “holiday hoarding” is contributing to burnout, higher sickness absence, and broader workforce challenges that employers cannot afford to ignore.
New research from Breathe HR found that more than half of UK workers did not take their full annual leave allowance last year, highlighting the scale of the issue across the workforce. Many employees also expect to take even less leave this year.
While unused leave may once have been viewed as a sign of commitment, HR leaders are increasingly warning that consistently postponing time off can have long-term consequences for both employee well-being and business performance.
Holiday Hoarding Reflects Broader Workplace Pressures
Breathe HR’s survey of 2,000 UK workers found that 51% failed to use their full annual leave entitlement last year, while nearly one in four (23%) said they expect to take less holiday this year than they did last year. The research suggests the trend is becoming increasingly common rather than an isolated workplace behavior.
The impact appears to extend beyond simply accumulating unused leave. Among employees identified as “holiday hoarders,” almost half (48%) reported feeling burnt out by the end of the year. They were also more than twice as likely to take an above-average number of sick days than colleagues who used their full holiday entitlement, suggesting that delaying breaks may ultimately result in more time away from work rather than less.
The research also explored why employees are reluctant to take time off. Alongside the financial pressures associated with taking vacations, internal workplace factors also contribute to the problem. Nearly one-third (29%) said their workload prevents them from taking holiday, while 21% reported that they are not actively encouraged by their employer or manager to use their leave. Meanwhile, 19% said holiday is treated as an inconvenience within their organization, reinforcing the perception that taking time off may be discouraged even where policies formally allow it.
Building a Culture That Encourages Time Off
For many organizations, addressing holiday hoarding requires more than reminding employees to book annual leave. HR specialists argue that leadership behavior, workload planning, and workplace culture all influence whether staff feel comfortable stepping away from work.
Phil Coxon, Group Managing Director at ELMO UK, believes employers should recognize the issue as a strategic challenge rather than simply an HR concern.
“This isn’t a minor HR issue, it’s a growing leadership challenge. Holiday hoarding isn’t a sign of dedication. It’s often a signal that something’s off in the way we lead, plan, or support our people.”
Creating healthier leave habits often starts with managers leading by example. When senior leaders regularly take annual leave, disconnect from work, and encourage their teams to do the same, employees are more likely to view taking time off as a normal and supported part of working life rather than something that needs to be justified.
Breathe also recommends using centralized systems that give employees real-time visibility into their remaining leave. Combined with automated reminders and reporting, these tools can remove administrative friction while giving managers better visibility into employees who consistently leave vacation time unused.
Regular check-ins and lightweight “holiday culture audits” can also help HR identify teams where workload or presenteeism may be preventing employees from taking time off.
Organizations can also reduce practical barriers by ensuring workloads are properly managed throughout the year, making leave balances easy to access, and encouraging employees to spread holidays across multiple periods rather than saving large portions until year-end. These measures not only help employees recover more regularly but also improve resource planning by avoiding a rush of leave requests during the same periods.
A Well-Being Issue With Business Consequences
The findings suggest that holiday hoarding should not be viewed solely through the lens of employee well-being. Burnout, higher sickness absence, and reduced engagement all carry operational and financial implications, making effective leave management an increasingly important consideration for employers.
The broader economic impact reinforces that point. Poor health is estimated to cost UK employers around £85 billion each year, highlighting how workforce well-being is closely linked to organizational performance. While annual leave alone will not eliminate burnout, ensuring employees are able to take regular breaks can form part of a wider strategy to support healthier, more sustainable ways of working.
With many employees already halfway through the year without taking sufficient time off, the research serves as a reminder that preventing burnout begins long before workers reach exhaustion. For employers, tackling holiday hoarding may prove to be one of the simplest steps employers can take toward building healthier, more productive workplaces.
