Hyphen research: Employees prepared to take pay cut for additional annual leave

A third (31%) of UK employees are willing to take a pay cut for additional holiday entitlement, according to research by recruitment solutions provider Hyphen. 

The research found that 40% of employees in their first three to six months and seven to 12 months (43%) of employment would look for holiday allowance over pay in compensation packages.

Two-fifths (41%) of 16 to 24 year olds would like more holiday entitlement as part of their compensation package, and are willing to consider lower base salaries to achieve this.

More than half (56%) of HR professionals and over 43% of finance professionals are in favour of more holiday allocation.

Zain Wadee, managing director at Hyphen, said: “Our research demonstrates a radical change in the way that compensation and benefits packages are viewed by workers today.

“Even in today’s challenging economic environment, with the cost of living growing faster than salaries are increasing, workers are looking for more holiday time, and greater work-life balance.

“It is important to note that Generation Y and the Net Generation are particularly vocal about their desire for additional leave allocation. This may be indicative of a future shift in workplace culture, with workers beginning to demand and value greater work-life balance than ever before.

“Employers must think strategically about the kind of benefits packages they should offer to younger staff members in order to attract and retain the best possible talent. 

“Offering a flexible menu of benefits may be one solution.”

Read the September cover story on adapting reward for a new generation of employees

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