The cost of the December shutdown to business in South Africa

Most businesses – retail and entertainment excluded – resemble ghost towns during the first and last weeks of the year. Energy levels are low in December, and employees daydream about cocktails on the beach. Come January, it takes a few days to get back into the swing of things.

“Before we know it, South Africa takes another extended holiday in April,” said Greg Morris, CEO of listed company Sebata Holdings. “We’re accused of having a “holiday culture” in South Africa. That’s a fair comment. We get 12 public holidays a year, which is more than most countries. And many people use their annual leave strategically in April and December to maximise their time off.

“As a result, we only really work for 10 months of the year, while other countries work for 11 months.”

There’s no doubt that public holidays affect the economy, said Morris.

“One extra public holiday in 2011 resulted in an estimated R7 billion loss in turnover. But there’s also a lot to be said for taking time off. And when we know the holidays are coming, we can prepare for them, so employees make the most of their downtime and start the new year on a strong footing.”

Burnout is not good for business…

Productivity and motivation are like fuel tanks. While driving, the fuel dries up. At some point, we need to fill up, otherwise we’ll break down. People are the same; we can’t run on empty. Weekends are one thing, but in our culture of always-connected busyness, we don’t get a chance to recharge over weekends.

“That’s why we need the longer break in December,” Morris said.

A Pulse Institute study found that, when employees are not rested, they experience:

  • 23% reduced concentration
  • 18% reduced memory function
  • 9% increased difficulty in performing tasks

Fatigue-related productivity losses amount to R26,000 per employee per year. Sleeplessness can also result in mistakes and increased absenteeism, accidents, or injury, the chief executive said.

“Well-rested employees, however, are happier and more creative, engaged, and productive. They get more done in less time than their sleep-deprived, low-energy colleagues.”

… but if you’re going to burn the midnight oil…

Businesses often think of December as a slow period that will harm the bottom line, Morris said. “Yes, it can be disruptive and there will be financial impacts. But if you’re going to keep the doors open til the end, this is the perfect time for internal housekeeping. Even the most efficient and streamlined businesses can improve some internal projects or processes.”

He said that bosses should allow teams to be inwardly focused during this time, so that you start the new year with less to worry about.

“Whether that’s planning for 2019, reflecting on what worked and what didn’t in 2018, cleaning up databases, servicing air cons and office machines, connecting with customers over coffee, updating your website, or creating new marketing campaigns, employees can achieve a lot when they’re not focused on the day-to-day grind.”

“Our best ideas come to us when we’re relaxed and not thinking about them,” Morris said.

Gone fishing

“My best advice for businesses that are shutting down in a few weeks is this: shut down. Since the business is not generating income, everything that’s left running – that one employee watching the phone that never rings; that one light left on – hurts the bottom line,” said Morris.

“Encourage teams to disconnect. Don’t expect them to answer mails and don’t contact them about work while they’re on holiday – unless it’s an emergency. Block access to mails if you have to, Volkswagen style. Give your people time to think, reflect, and sleep.”

Power down

He said that downtime is often seen as wasted time. “We don’t take breaks, we eat lunch at our desks, and we work when we’re sick and should be at home. But working longer hours doesn’t mean that we’ll get more done. In fact, it can be enormously counter-productive.”

Neuroscientist David Levitin cautions against the “false break”, when we feel guilty for taking time off and compulsively check emails. Napping, daydreaming, and “taking true vacations without work”, he says, is biologically restorative and essential for rebooting cognitive energy.

“So, if you’re going to shut down, do it properly. The same business challenges will be there when you get back. But you could solve some of them while you’re sleeping.”


Read: Expect daily load shedding until businesses shut for the holidays

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