I partly agree with the above statement that employers should give longer holidays to employees to increase productivity. I think that the productivity of an employee depends on many factors. And for each employee, it can be a different factor. Keeping subjectivity in mind, we cannot say that one solution fits all. Each employee has a different motivation for working and coming to the workplace. Some employees work for monetary benefits while some enjoy the social aspect of a workplace.
Longer holidays are definitely helpful for employees to achieve work-life balance. Employees would be able to spend time focusing on their health, family and other interests which can lead to a happier life for them. This may not necessarily lead to an increase in productivity at the workplace as long periods of absence from work can cause the momentum of a project to halt.
It has also been observed that when employees are away from work for long periods of time, they build resistance to coming back to work. This mindset is counter-productive for a workplace. It can lead to employee demotivation and unhappiness when at work. A lot of employees also use the workplace to socialize and meet with friends and colleagues. A long gap can leave them feeling lonely which can, in turn, affect productivity.
An employer must find out what drives each employee and try to find a balanced solution to building a great workplace. Trying to use a single solution to solve a major problem like productivity may not work very well. Longer holidays have benefits as well as drawbacks which need to be evaluated carefully.