When Time Becomes More Valuable Than Pay

For years, when we have talked about employee benefits, the conversation has centred around salary, bonuses, pensions, private healthcare, flexible and hybrid working.

But I think something else is starting to emerge.

Unpaid leave.

And perhaps surprisingly, it is becoming something that employees actively value.

This is something I have been thinking about recently because our business tends to follow the school holiday calendar in terms of when we are busiest.

This summer, I decided to take Fridays as unpaid leave.

And it got me thinking…

Is unpaid leave becoming an increasingly attractive benefit in today's workplace?

Why would anyone want time off they are not paid for?

It sounds counterintuitive.

Surely people want more money and more paid holiday?

But I think the answer is slightly more complicated.

Flexibility has become a form of compensation.

After more than 25 years recruiting finance professionals across Yorkshire and the Midlands, I am increasingly hearing candidates ask about flexibility around taking additional time away from work.

They are not necessarily asking for another five days of annual leave.

They are asking:

"Would I be able to take some additional unpaid leave if I needed it?"

And that is a different conversation.

People's priorities have changed

There are lots of reasons why someone might value the option of unpaid leave.

It could allow them to:

• Travel for longer without using their entire annual leave allowance.
• Spend more time with family.
• Care for an elderly or unwell relative.
• Take a longer break or pursue a personal goal.
• Study or undertake something they have always wanted to do.
• Simply switch off and properly recharge.

For some professionals, particularly those in senior finance positions, the ability to take an extra week or two away from work can be incredibly valuable.

And importantly, they are prepared to take the financial hit themselves to get that flexibility.

Why should employers pay attention?

From an employer's perspective, this could be a surprisingly powerful retention and attraction tool.

A structured unpaid leave policy can provide employees with flexibility without permanently increasing payroll costs.

It also demonstrates something that is increasingly important in the workplace:

Trust.

You are saying to an employee:

"We value you, we want you here, and we understand that work is only one part of your life."

In a competitive recruitment market, it is often the smaller things that can make the biggest difference.

A candidate might have two similar offers.

The salary might be almost identical.

The pension might be similar.

The holiday allowance might be similar.

But one employer says:

"If you ever need to take some additional unpaid time off, let's have a conversation."

That can make a difference.

Flexibility is becoming part of the employee value proposition

This isn't happening in isolation.

Flexible working is increasingly recognised as an important part of attracting and retaining talent. Government guidance published in 2026 specifically highlights flexible working and leave policies as tools that can help employers retain skilled employees and support wellbeing.

ACAS also highlights the benefits of flexible working for recruitment, retention, wellbeing and employee satisfaction.

And we are seeing businesses becoming increasingly creative about what flexibility actually means.

It isn't simply:

"Can I work from home two days a week?"

It can be about when people work, how they work and, increasingly, when they can step away from work.

Some large employers are already experimenting with unpaid leave as part of their wider benefits offering. KPMG Careers

It isn't about encouraging people to work less

I don't see unpaid leave as an excuse for people to work less.

Quite the opposite.

It is about recognising that people's priorities change throughout their lives.

Someone might want more flexibility because they have young children.

Someone else might want to travel.

Another person might need to care for a parent.

Someone else might simply want to take a month away to do something they have always dreamed of doing.

The important thing is having a conversation.

Of course, employers need clear policies around how much unpaid leave can be taken, how much notice is required and how teams will be covered.

It has to work for the business as well as the employee.

But flexibility doesn't have to mean unlimited flexibility.

So, is unpaid leave the next must-have benefit?

I'm not sure yet.

But I do think it is becoming a much more interesting part of the conversation around employee benefits.

And perhaps the biggest shift is this:

Employees don't always want more money.

Sometimes they want more control over their time.

And in a world where attracting and retaining good people is becoming increasingly difficult, that could be worth more than employers realise.

My question to employers...

If you had a fantastic employee who wanted to take three additional weeks away from work...

Would you rather lose them, or give them the option to take the time unpaid and come back?

I'd genuinely be interested to hear what other employers and employees are seeing.

Is unpaid leave becoming a benefit people actually want?‍