I vote yes! I have seen this practice in both non-profit organizations and for-profit businesses. Both state the same reasons for giving their employees paid time off during the week between Christmas and New Years: it improves employee morale, costs them very little in business as most people are checked out if they are even working during that time, and gives the much needed R&R and encourages life balance.
I agree! When I was Executive Director of a non-profit in Chicago the Senior Leadership team talked at length about making this part of our standard employee benefits package. The answer was a unanimous yes. As a small business or non-profit you may not have the resources to pay your people highly competitive figures. This paid time off for the holidays is one way to provide an additional incentive at little cost to you.
Of course there are businesses that cannot shut down during the holiday season. But by and large most businesses do very little business in the week between Christmas and New Years and most non-profits have worked their tails off getting through the holiday season meeting people’s needs. Most employees working during that time are very unproductive, wishing they were with family, or throwing office parties and shopping for white elephant gifts.
So consider making it paid time off for your people. This communicates that you are looking for ways to reward their hard work throughout the year. It communicates that you are interested in life balance. It communicates that you want high morale within your team and are willing to pay for that out of your own pocket of profit. If nothing else, it gives them a warm fuzzy feeling about you and that can never hurt!