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Desktop items in OSX - Do they really slow system down ?

Desktop items in OSX - Do they really slow system down ? Is that how it used to be and it isn't anymore?

We have many employees creating folders on their desktop and in those folders on average contain about 300-700 megs of files. They're basically "project files" for graphics jobs we do. Will the system run faster if they work off of the hard drive root?

Please only answer this question if you truly know the answer.

Thanks
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I think the OP wants to know about overall system performance.

Plus, with the advent of Tiger and Spotlight, aren't searches done from a database file anyway?