The push for increased annual leave is gaining momentum as unions campaign for a legislative change to provide employees with five weeks of paid holidays each year. The initiative, spearheaded by the Shop Distributive and Allied Employees Association (SDA), proposes updating the National Employment Standards to reflect the new minimum, along with increasing casual loading from 25% to 27.5%.
The call for additional leave is based on the premise that workers are now more productive and connected than ever due to advancements in technology. The last significant change in annual leave entitlement was in 1974. Supporters say that as productivity has increased, so too should the benefits that workers receive, including additional time off to recharge and maintain a healthy work-life balance.
For small businesses, particularly in the electrotechnology sector, the impact of this potential change is multifaceted.
On one hand, increased leave could enhance employee wellbeing, leading to higher morale and potentially greater productivity. It also poses challenges in managing workforce schedules and ensuring project timelines are met without incurring additional costs.
Naveen Raghavan, Workplace Relations Advisor at NECA and Business Solutions Hub, highlighted the dual nature of this proposal for small businesses.
"While the intention behind the push for five weeks of annual leave is commendable, it's crucial to consider the operational realities faced by small businesses to ensure that service delivery remains uninterrupted." Naveen said.
Whether it be 4-weeks or 5-weeks for annual leave, managing leave requests requires strategic workforce planning. Businesses can prepare by implementing advanced planning measures such as encouraging staff to submit leave requests early. This allows for adequate time to arrange coverage and minimise disruptions.
“Staggering leave approvals based on a first-come, first-served basis or through a rotating schedule can also help mitigate the risk of key staff members being absent simultaneously.” Naveen said.
Cross-training employees is another critical strategy. By developing skills across the team and regularly rotating job responsibilities, businesses can ensure continuity in operations even when individuals are on leave.
Naveen said, “Documenting standard operating procedures (SOPs), maintaining task lists, and using shared calendars further aids in keeping everyone informed and prepared.”
Effective communication is also essential during periods of extended leave. Notifying clients and stakeholders in advance about any staffing changes and ensuring internal clarity on who handles responsibilities in the absence of colleagues helps maintain seamless service delivery.
Internally, clarity is equally important; all team members should be well-informed about the leave schedule and who to approach in the absence of their colleagues, ensuring operations continue smoothly.
“Encouraging transparency regarding planned leave throughout the year fosters a proactive approach to scheduling work and meeting deadlines. Additionally, acknowledging the possibility of trade-offs, where employees may choose to prioritise commitments at different times, facilitates flexibility and ensures that business operations remain uninterrupted, even during peak holiday periods.”
“The new proposal could add to the operational challenges faced by small businesses, especially in a challenging economic environment. Ensuring that businesses do not suffer productivity losses while accommodating additional leave will require careful planning and resource management. The focus must remain on maintaining a balance between enhancing employee benefits and sustaining business operations.” Naveen said.
Small businesses, including those in the electrotechnology industry, must prepare for a potential shift in the workforce landscape. While the objective is to enhance work-life balance for employees, businesses will need to adapt strategically to ensure that productivity and service delivery remain at optimal levels.
For assistance in understanding employee benefits and workforce planning, the NECA Victoria Workplace Relations Team is here to help.
Call 1300 300 031 or email your enquiry to [email protected]