Benchmarking annual leave entitlements in 2011

Employers are planning to offer more generous annual leave allowances in order to remain competitive in difficult economic conditions, the latest HR & Compliance Centre research reveals.  With pay awards stuck below inflation as a protracted and painful economic recovery continues, some employers are looking to increase their annual leave offering as a way to remain competitive.

Four-fifths of UK employers say that they are planning to make changes in relation to holiday entitlement. Among this group, two-thirds are taking such action so as to be competitive and/or to demonstrate good practice. In contrast, only one in 20 is planning to change annual leave entitlements to meet statutory minimum requirements. 

These are some of the key findings of the 2011 HR & Compliance Centre Benchmarking survey on annual leave arrangements. The survey is based on responses from 335 organisations with a combined workforce of 461,513 employees, comprising a total of 653 employee groups. 

Subscribers to HR & Compliance Centre Benchmarking can drill down into the complete benchmarking data from the survey. 

Benchmarking annual leave entitlements in 2011

Across all companies surveyed by HR & Compliance Centre, the median annual holiday entitlement (excluding bank/public holidays) given to employees with one year's service stands at 25 days in 2011. The interquartile range is 23 to 28 days. 

The median entitlement for 2011 is unchanged from that recorded in HR & Compliance Centre's 2009 survey of annual leave arrangements (25 days). But the 2011 mean entitlement (at 26.2 days) is higher than the 2009 mean, which also came in at 25 days. 

The modal (or most commonly occurring) annual holiday entitlement (excluding bank/public holidays) is 25 days, offered to 35% of employee groups covered by the survey. The next most common entitlement is 20 days, offered to one in 10 employee groups. 

By broad industry sector, annual leave entitlements are most generous in the public sector. The public sector median annual holiday entitlement (excluding bank/public holidays) is 27 days, compared with 25 days at private sector organisations. 

Bank/public holidays are given as paid leave in addition to basic holiday entitlement for more than nine in 10 employee groups. 

When bank and public holidays are taken into account, the median annual leave entitlement for 2011 rises to 33 days, while the mean is slightly higher again, at 33.6 days. The public sector median annual holiday entitlement (including bank/public holidays) is 35 days, compared with 33 days at private sector organisations. 

Earning the right to additional leave

Six out of 10 employee groups covered by the HR & Compliance Centre Benchmarking survey have the opportunity to receive additional holiday entitlement according to length of service. Such arrangements are more common at public sector organisations than in the private sector. 

Across the whole economy, the median number of additional days' leave that employees can receive for length of service is five. 

The median number of years' service required to receive any additional leave entitlement is six years, rising to 9.7 years at the mean. 

You can also access HR & Compliance Centre's detailed written analysis of the annual leave survey findings. 

Michael Carty, benchmarking editor

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