Electric Eagle is definitely right about the extra costs of a paid holiday. It cost alot more than just someone's pay for 8 hours.
But, (My two cents)
A company's most valuable asset are its people. Especially in a service related business. Your employees are the face of your company that all of your customers see on a daily basis. If your employees are happy, everyone benefits. They will do better work, work harder, and they will be your salespeople. And if that means alot of cost for me to give them a day off, In some respects its worth it.
just my $0.02
Stan
