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SINGAPORE: Many employees are struggling to clear their annual vacation days, human resources experts said, as COVID-19 travel restrictions prevent Singaporeans from going abroad for pleasure.
Some employees have tried to save their unused leave days to move them forward to next year, but the lack of a break from work could affect their mental and physical health, experts told CNA.
“Many employees tend not to take annual leave when working from home as they don’t feel like they need a ‘getaway’ from the office environment,” said Ms Jaya Dass, Randstad Managing Director for Singapore and Malaysia.
“However, not taking leave for an extended period can affect energy levels, mental health and general well-being,” he said, adding that this could lead to burnout for employees.
Overworking could also cause higher levels of stress, more health problems, as well as reduced creativity and performance, said Tricia Tan, director of human resources at Robert Walters South East Asia, factors that could reduce productivity.
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Employees accruing and rolling over their unused leave days is also a problem for companies, Ms. Dass noted, as companies would have to record those unused leave days as a financial liability in the income statements. .
And that It might not be a feasible option for startups and small and medium-sized enterprises (SMEs) that generally have lower cash flow, he said.
If companies allow employees to advance their unused vacations into the next year, it could cause a “drastic drop” in the workforce when leisure travel can resume.
“This would affect productivity levels and increase the stress for employees who have to take on a higher workload,” added Ms. Dass.
ENCASHING PERMIT
To address the problem of unused leave, Nanyang Technological University (NTU) launched an initiative to allow employees to donate their leave days to raise money for student aid.
It announced in November that employees donated more than 20,000 days of unused leave worth S $ 10.25 million.
Voluntary donations were made by 1,821 faculty and staff, with each employee contributing an average of 11 days. The largest donation was 15 days of leave.
READ: NTU staff donate more than 20,000 unused annual vacation days to raise money for student aid
This could be a viable option for companies, but only if it is a voluntary option for employees, Ms. Dass said.
“It will not be good for employee morale if it is made mandatory for them to give up their annual leave, especially if they are allowed to carry some until 2021,” he added.
The reinstatement of the unused license for charitable purposes establishes the “correct intention,” Ms. Tan said.
Other than that, companies that allow a charge leave in light of the COVID-19 situation could be setting a precedent where employees might think this is an option in the future, he warned.
It could generate “incorrect behavior around the accumulation of licenses so that they can charge them at the end of the year,” he added.
Charging costs money, which will put financial pressure on companies already struggling, Tan said, adding that the priority right now should be to ensure that business operations can continue in a viable manner so that employees continue to have a job.
WHAT COMPANIES CAN DO
Other options that companies may consider include allowing a portion of the annual leave to roll over to the following year to be authorized within a set period of time, or enforcing the leave in bulk.
Companies can also allow employees to use their annual leave as flexible credits for benefits such as self-improvement courses, counseling, health screenings, yoga and gym classes, as well as health supplements, Tan said.
The last option is to give up the license, he added, but this is the “worst case scenario” that companies must avoid “as it creates feelings of discontent and injustice.”
Some companies told CNA that they have adjusted their licensing policies given the unprecedented situation caused by COVID-19.
Ernest Phang, head of corporate human resources services for the OCBC group, said the company recognizes the “exceptional year” due to the pandemic.
“This year, our employees will be able to carry over additional days of their annual leave until 2021 (from the current seven days to 12 days) or choose to collect some days (up to five days) of their annual leave,” he said. .
Additionally, OCBC Flex Plan employees will continue to be able to convert up to three days of their leave to credits, which can be used to reimburse their co-payment for medical expenses for themselves or their family members, insurance premiums, wellness and other personal expenses.
The UOB group’s head of human resources, Dean Tong, said the bank increased the amount of unused annual leave that can be carried over to 2021, from 10 to 14 days.
The bank also revised its employee care program this year to allow staff members to use up to two days of transferred annual leave to offset any expenses. Previously, this applied only to health and wellness expenses.
A Keppel spokesperson told CNA that conglomerate policy allows the unused license to roll over to the following year, up to a maximum of the one-year provision.
“We encourage our employees to take their annual leave and take days off to relax and recharge,” the spokesperson said.
Ultimately, line managers need to make sure employees use their annual leave and take time to recharge and disconnect from work, Ms. Tan said.
“As a line manager, it’s important to practice what you preach – lead by example and set the tone for the importance of free time,” he added.
On the need to disconnect from work, he said: “We must not neglect the fact that annual leave is established with the key intention and purpose of allowing employees to take time off to rest, renew themselves physically and mentally.”
