Will a bank holiday for the Queen's Diamond Jubilee hurt business?
I am a royalist and I would be the first to congratulate the Queen on 60 years in a role that few of us would relish. But let's consider the economic effects of bank holidays on business. We're in the worst economic recession for many years and conditions are difficult. UK business is on its backside – and the government has decided to put a brake on the giant flywheel which is the British economy.
Most businesses write contracts of employment in terms of "annual leave plus public holidays", so when the number of bank holidays is increased, it is businesses that pay for this generosity. Once a working day is declared a bank holiday, that productivity is lost.
For businesses that offer the services of their staff on an hourly or daily basis, the effects are more severe. The removal of the day from the business calendar takes away the opportunity to win the corresponding revenue. Other businesses can make up for lost time on other working days, but service companies cannot always do so. For them, an extra public holiday cuts their top line by nearly half a per cent, and has an even bigger impact on the bottom line. I object strongly to our margin being cut for such a frivolous reason.
If you think I sound draconian, please spare me. I could incentivise staff more effectively by spending the £100K or so that the bank holiday will cost us in a different way.
Shaun Davey is chief executive of IT services company IPL
"All work and no play makes Jack a dull boy." That saying was first documented in the 17th century, but it remains true. The payoff for time away from work is employees who return refreshed and relaxed.
Viewing an extra bank holiday as a drain on resources is tempting, especially in the depths of economic gloom. But what about the glass half full view? Anything which makes people feel good is likely to increase consumer confidence and stimulate the economy. In the retail sector, while it's a day when staff will be paid extra for working on a bank holiday, sales are likely to rise, not least because of the feel-good factor. Similarly, the longer weekend should stimulate demand in the leisure sector.
One way to ensure that the extra holiday does harm business would be to deny it to employees because of the wording of employment contracts. This would damage staff morale, lead to management being seen as uncaring and motivated solely by profit.
Whatever your personal views on the monarchy, the Queen's Diamond Jubilee is a momentous occasion, and it's fitting that it should be celebrated by the entire country. Just accept that your staff get the extra day off, grin and bear it. The negative effect on employee morale, and the longer-term damage to how you're perceived by your workforce, would make the alternative more harmful.
Martin Buck is managing director, Europe, of Intelliga Communications
