We recently helped a client reduce their annual leave and long service leave liability from $790k down to $200k. Now this liability was sitting on their balance sheet (looks bad to potential investors) and if a chunk of their team left suddenly, it would need to be paid out immediately. Do you have a spare $790K lying around?
So you might ask how did this happen? Basically no one had accountability to watch the balances or proactively manage employees to take timely leave breaks. And it made me think, how many other small businesses are sitting on business-breaking liabilities in their employee cost base?
Unmanaged leave is a silent risk that can cripple a small business. Taking accountability and encouraging your team to actually take their well-deserved breaks is one of the smartest financial moves you can make. Remember, proactively managing employee leave balances is critical—not just for your team’s wellbeing, but also for business productivity.
(Note: This article was originally published on the HerBusiness blog)