Why taking a holiday can be your best business strategy

I have just come back from a week away from Yarmouth in a tropical paradise while also combining a little business at the end, in Singapore. Just sharing some reflections in today’s blog about why taking a break is good for your health and your business.

Introduction

In today’s fast-paced corporate world, ‘busyness’ is often worn as a badge of honour. Entrepreneurs, executives, and high-performing managers frequently sacrifice personal time to meet pressing deadlines, manage teams, and especially for the entrepreneurs, scale businesses fast. However, flip the script and view this behaviour from a financial perspective - no logical investor would expect an asset to produce maximum output indefinitely without scheduled maintenance. Yet, many professionals can treat their minds and bodies this way.

Taking a holiday is not necessarily a reward for hard work (although it can be); I believe it it is an essential business strategy with a potential for a material return on investment (‘ROI’). Prioritising regular time off provides substantial biological and neurological benefits that safeguard health, increase longevity, and ultimately drive professional success.

The cardiovascular premium: Reducing heart risks
For high-stress business professionals, chronic stress can keep the body in a constant state of hyperarousal. This elevation of cortisol and adrenaline forces the cardiovascular system to work harder, increasing blood pressure and potentially damaging arterial walls. Forgoing downtime in the form of holidays, can have negative measurable consequences.

Clinical data shows that regular time off directly impacts long-term survival rates. In the landmark Multiple Risk Factor Intervention Trial (‘MRFIT’), researchers tracked over 12,000 men with high risks for coronary heart disease over nine years. The study revealed that men who took regular annual holidays were 32 per cent less likely to die from a heart attack and also reduced their overall mortality risk by 21 per cent.

The data for female professionals is equally striking. The Framingham Heart Study, a long-running epidemiological research project, discovered that women who took holidays only once every six years or less, were eight times more likely to develop coronary heart disease or suffer a heart attack compared to those who vacationed at least twice a year. Stepping away from the office can be a clinical intervention that extends a professional's biological timeline, or in other words, assisting with your longevity!

For excellent insights on heart health, there are amazing resources at The Victor Chang Cardiac Research Institute, https://www.victorchang.edu.au/ led by our great friend, Professor Jason Kovacic.

The neurological reset: Restoring cognitive capital
Prolonged work periods without structural recovery can lead to cognitive fatigue. This can manifest as poor decision-making, reduced emotional intelligence, and decreased problem-solving capabilities. When an executive experiences chronic burnout, their brain’s prefrontal cortex which is the the command centre for executive function, logic, and self-regulation weakens.

A strategic holiday can break this cycle. Stepping out of a demanding environment and ‘witching off’ removes the constant triggers associated with anxiety and deadlines. According to data from the American Psychological Association (‘APA’), purposefully changing a routine and environment cuts stress, reduces muscle tension, and improves brain function and memory.

Furthermore, stepping back creates space for innovation. When the brain is focused on narrow, daily tasks, it relies on standard, linear thought patterns. Immersing oneself in a new culture, navigating a different city, or simply resting by the ocean triggers the brain’s ‘default mode network’ (‘DMN’). This network is responsible for making non-linear connections, which sparks creative breakthroughs and strategic insights. True innovation rarely happens while working in an exhausted state. Innovation is more likley to occur when the mind has the space to wander and explore.

Mitigating liabilities: Preventing executive burnout
I’ve recently had the benefit of spending time with a Mastered Certified Coach (‘MCC’) of the International Coaching Federation (‘ICF’) and have learned that burnout can be a major professional liability. According to insights from the Harvard Business Review, over 50 per cent of managers experience burnout, driven by the pressure to always be ‘on’ (hello modern communication tools) and responsive to the bosses. Burnout of executives can lead to absenteeism, costly strategic mistakes, and sudden career departures.

Holidays act as a preventative safety valve. Stepping away from work allows the nervous system to shift from a sympathetic ‘fight-or-flight’ state to a parasympathetic ‘rest-and-digest’ state. Data shows that taking regular time off can significantly alleviate depressive symptoms, lower anxiety levels, and elevate overall life satisfaction.

Additionally, the physical benefits of a holiday include better sleep health. Research indicates that during a vacation, individuals can gain up to an extra hour of quality sleep per night. This extra rest boosts cognitive reaction times by up to 80 per cent upon return to the office. A well-rested professional operates with higher mental clarity, stability, and focus than a fatigued peer.

The productivity dividend: Improving year-end performance
A common objection among professionals is that they simply have too much work to take a break. However, working while exhausted gradually yields diminishing returns. Extended hours do not necessarily yield equal quality output. It can for a time, but not in the long-term.

Internal metrics from top-tier professional service firms show a direct link between taking holiday time and workplace performance. For example, an internal study conducted by Ernst & Young revealed that for every additional 10 hours of vacation time an employee took, their year-end performance ratings improved by 8%. Furthermore, small business owners reported an 82 per cent increase in their own job performance after returning from a vacation.

Taking time off also enhances workplace efficiency. When leaders take regular vacations, it empowers their supporting teams to step-up, builds organisational resilience / bench strength, and tests operational systems. If a business cannot function for two weeks without its leader, it reveals an operational weakness that needs addressing, rather than proof of indispensable status. (I’ve seen CEO’s fired - no-one is indispensable).

Maximising your strategic recovery - some tips on getting the most out of your holiday
To gain the full health benefits of a holiday, approach your time off with the same intentionality as a major business project. Simply moving your office to a beach chair while answering emails will not generally trigger a biological recovery. Once could consider these strategies to maximise your time off:

  • Digital disconnection: True recovery requires a digital detox. Completely disconnect from work platforms. Temporarily remove work email and communication apps from your personal phone, and establish clear boundaries so you are only contacted for absolute emergencies.

  • Frequency over duration: Do not wait for a single, two-week annual trip to save you from burnout. Research shows that the stress-reducing benefits of a holiday can fade within a few weeks of returning. To maintain optimal health, schedule short breaks or even three-day weekends (or four day weekends for Melbourne Cup!) once every few months to keep your energy levels steady and maintainable throughout the year.

  • Cultivate anticipation: The cognitive benefits of a holiday begin long before the trip starts. Studies show that looking forward to a trip provides a happiness boost for up to eight weeks during the planning phase!

Conclusion
In business, every leader knows the importance of protecting your capital. Your mind and body are your ultimate professional capital. Forfeiting holiday days is not dedication; it is an unsustainable and irresponsible management of your most valuable asset.

By treating holidays as a non-negotiable part of your health and business strategy, you protect your cardiovascular health, restore your cognitive power, and help to prevent burnout. To perform at your peak over a long, successful career, step away from the desk, set your out-of-office message, and take a break!

Can we help your business?‍

‍If you are a private company board or a company holding an AFSL and would like to discuss how I can assist your company with enhancing your governance so that you can better manage your compliance risks and protect your investors, please contact me for an obligation-free discussion. I can assist your company with:‍ ‍‍ ‍

  • Responsible manager;

  • Compliance committee;

  • Company director;

  • Advisory board services;

  • International company resident director services;

  • Compliance reviews; and

  • Governance committee services.

I’d be excited to assist your company meet its ongoing governance and compliance obligations relating to your company, or your AFSL, and to give your customers and investors/shareholders comfort that you can manage your business with institutional grade corporate governance.

‍ ‍‍ ‍

Governance + Strategy = High Performance

https://www.andrewsmcneil.com/

‍ ‍

Disclaimer

This content of this blog post is not medical advice. The information provided is opinion and for general purposes only and is not a substitute for personalised medical advice.

Next
Next

Rawlings Bolton: Growth and private equity in professional services