Melbourne Cup… the race that stops productivity?

| November 1, 2016

Businesses across Australia will take time out to watch the Melbourne Cup. What is your business planning?

This afternoon at lunchtime the Carrera Partners office, like most around the country, will cease to be terribly productive as the team focussedsits attentions on a gourmet lunch with champagne followed by lots of cheering at the TV as the Race That Stops the Nation will engross us.

Not unusual at all and our efforts at celebrating will undoubtedly conservative compared to many with all of us back in front of our computers and hard at work shortly after the race finished.

But numerous conversations with clients and contacts along with some alarming statistics in the news media have got us to thinking…. What impact does this loss of productivity have on our businesses? And is it offset by the morale and goodwill produced by encouraging your employees to let loose and enjoy this one afternoon of fun and frivolity?

The economic benefits of the Melbourne Cup are numerous and the impact is undeniable with Australians spending up large – with some saying bets could crack the $100 million mark with reports it could even as much as $140 million. This is not to mention the spending that goes into preparing for the big day – the desire to look the part costs Victorian’s $31.4 million in the last economic impact statement prepared after the 2014 race– think dresses, hats, shoes and spray tans… The list is endless…. And very expensive! On top of millions Australian’s spend each year to be part of this celebration the increasing globalisation of this iconic event with more than 26,000 visitors travelling to Victoria specifically for Melbourne Cup, spending more than $155 million, last year.

This boost to the economy though is only one part of the picture… there is another perspective which has the potential to counter any positive impact. With up to three quarters of Australian businesses essentially shutting down for the afternoon while workers celebrate over champagne and office sweeps, the result is tens of thousands of hours of lost productivity – a cost to our economy which one survey estimates runs upwards of $1.2 billion. Then there is the day after where sick leave escalates to disproportionate levels and many of those who are present are working at reduced capacity as they battle the lasting effects of the festivities.

Most businesses will accept that this dip in productivity is an intrinsic cost of doing business in Australia and willingly contribute to the celebrations with fancy lunches and endlessly flowing champagne. Many see this contribution as a reward to the team for their hard work through the year and a gesture of goodwill that has the potential to boost morale and vitality around the office as we begin the countdown towards the Christmas period and energy levels as a whole begin to wane.

We are interested in your perspective…. How do you choose to spend the first Tuesday afternoon in November? Do you encourage your team to let their hair down and count the cost later? Or would you prefer a team that is hard at work and not spending their afternoon focussed on a TV screen?

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