Will more vacation days bring more productivity?

How much will additional vacation days cost for workers? How much will productivity increase after doubling vacation days in Mexico? These two questions were left out of the debate of the senators who approved the changes to articles 76 and 78 of the Federal Labor Law. Perhaps they seemed too technocratic or, outright killjoys, too corporately biased. Very probably they will not be part of the discussion in the Chamber of Deputies, which will discuss and approve the reform before the end of the year.

Don’t get me wrong: I start this article talking about costs and benefits because I think it is very important to have those numbers to have a better perspective of what is coming. I totally agree with this reform that was proposed in July, by Senator Patricia Mercado, from Movimiento Ciudadano. Mexico is one of the countries with the fewest vacation days in Latin America. Brazil, Panama and Nicaragua grant workers 30 days off at the end of the first year of work. Bolivia, Chile, Colombia and Ecuador offer 16 days. In addition to these data, it must be said that Mexico is the OECD country that works the most hours per year. Here, it’s 2,255 hours. Just as a reference, in Germany “barely” 1,365 work and in the United States the number of hours worked in a year is 1,767.

The reform is deeper than it seems: it needs a cultural change, on the part of the workers and those who run the companies. We are talking about 12 days of vacation that must be enjoyed continuously. Each year, another two days will be added until reaching 20 at the end of the fifth year of work. How will the workers exercise that right? In many cases, not all vacation days to which one is entitled are taken consecutively. The reasons are diverse: It is the workload that accumulates each time a worker is absent; the impossibility of offloading the tasks of the absentee to another colleague… the fear of losing the job.

How will companies manage to function with these new rules? The adjustments they make must be made very quickly, because the legislators did not buy the argument of the Chambers so that the changes would be gradual. Rather than complain or see how compliance is simulated, it would be worthwhile for company managers to focus on the positive: more vacation days per year could mean that workers are more motivated and more committed to the company. That translates into higher productivity and more ability to perform creative tasks.

Will the increase in productivity offset the increases in costs? Surely, although it is necessary to calculate or measure both. Additionally, measures will have to be taken to ensure that this productivity boost becomes a reality, as well as motivation and commitment. The costs will be noticed from the first day and will be for everyone. The productivity gains will go to those who do the job of human resource management well.

Mexico has one of the lowest productivity growth rates in Latin America. According to the World Bank, in the last three decades, the increase in productivity in Mexico has been 0.8% per year, lower than the 1.4% that has been registered in Latin America and well below the levels of 3% that the Tigers have achieved. from Asia. 65% more hours are worked here per year than in Germany, but that doesn’t mean much when it comes to results. In terms of productivity, Mexico is number 51 in the world. Germany is fifth place. More days of work do not make us more productive, quite the opposite. Concentration fails and the ability to produce new ideas or solutions decreases. Errors and waste of inputs increase. Is the increase in vacation days the secret ingredient that is missing from our recipe to improve our productivity results?

lmgonzalez@eleconomista.com.mx