In today’s fast-paced work environment, supporting employee mental health is no longer optional. It’s essential. One of the simplest yet most effective ways organisations can protect wellbeing is by encouraging employees to take annual leave and fully disconnect during holidays.
Time away from work is not just a perk. It is a proven way to improve employee mental health, boost productivity, and create a healthier workplace culture.
Why Employee Mental Health Matters in the Workplace
Poor employee mental health can lead to burnout, reduced performance, and increased absenteeism. When employees feel overwhelmed and unable to switch off, their stress levels rise, impacting both individuals and organisations.
According to a research by Deloitte, poor mental health costs UK employers an estimated £56 billion per year, with the impact broken down into three key areas:
Staff turnover: roughly £23 billion, as employees leave roles due to burnout, stress, or lack of support
Absenteeism: around £8 billion, caused by employees taking time off due to mental health challenges
Presenteeism: approximately £24 billion, making it the largest cost, where employees work while unwell but perform significantly below their full capacity.
These figures highlight that the biggest risk is not always visible absence, but reduced productivity and long-term disengagement.
On the other hand, when businesses actively support mental health, they benefit from:
- Higher engagement
- Better retention
- Increased productivity
- Stronger team morale
Annual leave plays a key role in achieving these outcomes by helping prevent stress from escalating into more serious mental health issues.
The Link Between Annual Leave and Mental Health
Taking regular time off allows employees to mentally and physically recharge. Continuous exposure to work-related demands without adequate breaks can lead to chronic stress, which gradually builds up over time. Without opportunities to step away, employees may find it harder to concentrate, regulate emotions, and maintain motivation, ultimately increasing the risk of burnout.
Annual leave creates space for recovery by allowing individuals to detach from daily pressures, reset their routines, and return to work with renewed energy. This recovery process is essential for maintaining long-term mental health and sustaining performance at work.
Key mental health benefits of annual leave:
- Reduced stress and anxiety
Time away from deadlines and responsibilities helps lower cortisol levels, enabling employees to feel calmer and more in control. - Improved mood and emotional wellbeing
Engaging in enjoyable activities, spending time with loved ones, or simply resting can significantly enhance overall mood and reduce feelings of overwhelm. - Better sleep quality
Stepping away from work-related pressures often leads to improved sleep patterns, which are closely linked to better mental health and cognitive functioning. - Increased resilience
Regular breaks help employees build emotional resilience, making it easier to cope with future challenges and workplace stressors.
Even short breaks can significantly improve mental health, especially when employees fully disconnect from work responsibilities. Creating clear boundaries, such as avoiding emails or work calls during leave, ensures that the benefits of time off are fully realised.
How Holidays Improve Employee Mental Health
1. Encourages Psychological Detachment
One of the biggest benefits of holidays is the ability to switch off. When employees are not checking emails or thinking about deadlines, their minds can recover from constant pressure.
This psychological detachment is essential for maintaining good mental health.
2. Prevents Burnout
Burnout is a growing issue affecting employee mental health worldwide. Regular holidays act as a preventative measure, giving employees time to rest before stress becomes overwhelming.
3. Boosts Productivity and Focus
Employees who take time off return to work with:
- Better concentration
- More creativity
- Higher motivation
Improved mental health directly translates into better performance.
4. Strengthens Work-Life Balance
Holidays allow employees to reconnect with family, friends, and personal interests. This balance is crucial for long-term employee mental health and overall life satisfaction.
How Employers Can Support Employee Mental Health Through Leave
Organisations play a critical role in encouraging employees to take time off.
Practical steps include:
- Promoting a culture where taking leave is encouraged
- Ensuring workloads are manageable before holidays
- Discouraging work during time off
- Leading by example (managers taking leave themselves)
Supporting annual leave is one of the most effective ways to improve employee mental health without major investment.
The Role of Mental Health Training in Supporting Time Off
While annual leave is essential, it works best when combined with proactive support systems.
Training programmes such as Mental Health Awareness and Mental Health First Responder (MHFR) help organisations:
- Recognise early signs of stress and burnout
- Encourage healthy behaviours, including taking leave
- Build confidence in having conversations about wellbeing
- Create a more open and supportive workplace
A mental health awareness course is often the first step for organisations beginning their wellbeing journey, while MHFA and MHFR provide deeper, more practical skills for supporting others.
👉 Learn more about how Mental Health First Responder training supports workplace wellbeing.
Conclusion
Annual leave and holidays are not just about restthey are essential for maintaining strong mental health and supporting employee mental health in the workplace.
By encouraging employees to take regular breaks, organisations can:
- Reduce burnout
- Improve productivity
- Build a healthier, more resilient workforce
When combined with training such as a mental health awareness course, businesses can create a proactive approach to wellbeing that delivers lasting impact.