You may think an annual leave purchase scheme wouldn’t be that popular since it requires employees to give up a portion of their salary for more days off.
This isn’t the case. An annual leave purchase scheme is hugely in-demand among employees who prioritise having more time to enjoy life.
UK employees are legally entitled to paid holiday each year, with some employers choosing to offer more than the minimum requirement to enhance their Employee Value Proposition (EVP).
Extra paid holiday costs the business more money, so allowing employees to purchase annual leave enables them to get those extra days of holiday if they choose to.
Employees are demanding a better work-life balance, and annual leave is essential in enhancing employee wellbeing.
An annual leave purchase scheme empowers employees to take more time for themselves, practise self-care and fill their wellbeing cups.
Statistics reveal that not all employees use all their entitlement, but that’s not likely to be the case with working parents. The parents in your business will often use their annual leave entitlement to save money on childcare during the school holidays.
Allowing them to purchase annual leave gives them the chance to have an extra day or two to focus on themselves.
Employees who purchase additional annual leave give up a portion of their salary as payment. If an employee earning £34,963 (standard tax bracket) purchases five extra days of annual leave your business would save £773.21 in salary and National Insurance Contributions. It’s an employee benefit that can deliver significant business savings.
An Annual Leave Purchase Scheme is a popular employee benefit. Some employees consider it a must-have workplace perk and will be reluctant to leave the business that provides it. This scheme will increase employee satisfaction, engagement, and loyalty.
Not all absences are due to illness. Disengaged employees cause absenteeism to spike, costing UK businesses billions annually. Allowing employees to purchase annual leave enhances engagement, reducing unplanned absences.
A better work-life balance improves employee wellbeing, and healthy employees are happier and more productive. Giving your people the option to purchase annual leave to use as they please helps them experience more, nurturing their passion, creativity and ability to innovate.
An Annual Leave Purchase Scheme enhances your EVP, creating an employee benefits offering that can set you apart from other employers. From an employer branding perspective, it’s an employee benefit that shows you practice what you preach and put employee wellbeing first, ensuring your workforce enjoys a positive work-life balance.
Our Annual Leave Purchase Scheme is *free to implement with no per-person charge for adding it to your offering. Each application has an administrative charge, but the money saved through the scheme far outweighs this small cost.
Costs are calculated on a per-employee basis and depend on salary and tax brackets.
Once an Annual Leave Purchase application is approved, we’ll schedule the salary deductions repayments to begin in the next month’s pay.