It would be easy to assume that since Canadian workers receive an average of 10 vacation days per year—far less than the minimum of 4 weeks in many European countries—Canada would have higher productivity. However, this isn’t the case. In reality, Canada’s productivity levels have steadily declined over the past 40 years.
Recently, the Bank of Canada has highlighted low productivity as a concern contributing to rising inflation.
A recent article highlighted the growing trend of “quiet vacationing” where employees in certain demographics are disguising downtime as remote work instead of requesting PTO due to the pressures of deadlines and wanting to appear productive.
The Two Main Concerns with “Quiet Vacationing”
- In Ontario, even relatively minor dishonesty can be upheld as cause for termination. “Quiet vacationing” could result in job loss without statutory payments, common law notice, or EI benefits during your period of unemployment.
- Why are employees afraid to use their vacation days amidst a well-documented labour shortage and rising wages? This fear bears more scrutiny. If our management culture shames employees for exercising legally protected vacation entitlements, it not only violates employment agreements but also breaches the statute.
A similar practice to the latter point would be raising commission targets after a year of over-target sales because employers believe that they have an unfettered right to unilaterally alter commission plans.
The Consequence of Counterproductive Policies
This discourages employees from exceeding sales targets in the future, knowing they’ll have to continually match or surpass sales in the preceding extraordinary year just to make target compensation the following year. This paired with high income taxes top performers already pay carves away the financial incentive.
How do we Motivate Employees?
In today’s landscape, where many have shifted from entrepreneurship to stable employment, motivating Ontario employees is crucial. Turning carrots into sticks isn’t a strategy for reversing lagging productivity. Instead, we should consider:
- Commend employees for exercising their vacation entitlements, ensuring they stay fresh and productive, and
- Incentivize high-performing employees by creating compensation and taxation systems that encourage employees to overperform and inspire innovation.
Workplaces that value and celebrate rest and high-achievement can help Canada get on a more productive path.