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Time Traditions: The Hidden Financial Impact

Time Traditions and Hidden Financial Impact

The convention of starting breaks at noon and salary payments on the 25th of each month is widely observed, particularly in larger corporations in Japan. It’s a norm that many of us accept without much thought. However, the practical implications of these seemingly arbitrary timings can be surprisingly significant.

For instance, a long queue is a common sight on the 25th due to salary disbursements. Similarly, there’s always sudden influx of diners at restaurants at noon, underscoring the widespread adherence to these schedules.

Have you ever considered the cumulative time and financial cost of these synchronized schedules? Imagine a scenario where employees wait an average of five minutes for lunch due to the noon rush, resulting in a daily aggregate of 50,000 minutes lost across a 10,000-person company. This equates to 833 hours per day, or, assuming an hourly wage of 2,000 JPY, a staggering annual loss of 400 million JPY just from inefficient lunch break timing.

The same logic applies to payday queues at ATMs. Shifting salary distribution by just one day could eliminate this inefficiency, saving the same amount of money and time.

It’s puzzling that, amidst widespread efforts to enhance financial efficiency and productivity, such straightforward and impactful adjustments are often overlooked. The question arises: Why do we cling to these conventions, and what might we gain by reevaluating them?

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Author:
Shuichi Shimizu
CEO and Founder of Mahana Corporation
Leading Digital Marketing Agency in Tokyo, Japan