Companies in the UK are saving billions of pounds every year because senior people like IT managers are not taking all their allocated holiday, a new report suggests.

The Chartered Management Institute has estimated that a total of 21.6 million holiday days go untaken every year in the UK - saving businesses around £4 billion annually.

IT managers said that work pressure and the fear that systems would not function while they were away stopped them from taking their vacation.

"Taking time off for a proper break is not a sign of weakness, so individuals should be encouraged to use their holiday entitlement to the full," commented Jo Causon, director of corporate affairs at the Chartered Management Institute.

The report also found that increasing numbers of businesses managers wanted to exchange their holidays for other benefits, like more money.

"With growing numbers also keen to offset their travel arrangements perhaps employers could consider carbon offsetting as an option for employees looking to exchange unused holiday time," concluded Ms Causon.

However, a recent report from Ireland found that many IT managers who did take their holiday used mobile internet services to keep in touch with the office while they were away.

According to recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent).