In an exclusive interview with CanadianSME Small Business Magazine, Heather Haslam, VP of Marketing at ADP Canada, delves into the challenges of the “time-off tax” and its impact on employee well-being and productivity. With over 25 years of experience in the Canadian technology market, Heather offers actionable insights into fostering a workplace culture that promotes balance, supports employees through effective vacation policies, and encourages leaders to lead by example. Her expert guidance provides small and medium-sized businesses with innovative strategies to prioritize employee satisfaction and create healthier, more productive workplaces.
Heather leads the ADP Canada Marketing mandate to support businesses across all segments in Canada. In her role, Heather provides strategic direction for Marketing planning including product marketing, campaign management, demand generation and branding.
Heather has more than 25 years experience in the Canadian technology Market. She is a proven, accomplished and dynamic leader specializing in motivating people for change and increased productivity with successes across Marketing, Sales Channel Development, Product Management, and Mergers & Acquisitions
Heather holds a degree in Psychology, a Masters of Business Admin from the Ivey School of Business, and has dedicated her free time to volunteering with a variety of mental health-related causes. Heather is currently serving as the Chair of the Board for The Institute for Advancements in Mental Health.
The concept of a “time-off tax” is intriguing. Can you elaborate on this phenomenon and its impact on employee well-being and productivity?
- The concept of a “time-off tax” refers to the implicit costs and pressures employees face when taking time off from work. The amount of extra time that workers put in before or after their vacation drives the time-off tax. This can include the stress of catching up on missed work, the fear of being perceived as less dedicated and the potential for increased workload upon return. These factors can discourage employees from taking necessary breaks, leading to several negative impacts on well-being and productivity. These can include burnout and stress, which can then lead to decreased efficiency and higher turnover in the workplace.

Your research indicates that many workers don’t take all their allotted vacation time. What are the primary reasons behind this trend, and how can businesses address this issue?
- Many workers in Canada are hesitant to take all their allotted vacation time due to the ‘time-off tax,’ which averages 13.6 extra hours of work before and after a one-week vacation, according to ADP Canada research. This additional workload, combined with the stress of preparing for and recovering from time off, can make vacations seem more burdensome than beneficial. To address this issue, employers should promote work-life balance by offering flexible deadlines and structured hand-off processes. People leaders who ensure there is coverage for workers when they are off, as well as encouraging disconnecting while off, are helping to alleviate stigma around taking vacation. Clear communication of time-off policies and managing workloads can also help.
How can employers create a workplace culture that allows and actively encourages employees to fully disconnect during their time off?
- It’s crucial that employers foster a workplace culture that encourages employees to fully disconnect during their time off. A few strategies for employers include:
- Setting clear time-off policies and clearly defined expectations for employees during their vacations. Leaders should model this behavior.
- Help employees plan their workload before they go on vacation and ensure there is a system in place for delegating tasks. Supportive technology, such as automated out-of-office responses and access control, can further aid in this process.
- A supportive workplace culture requires a universal approach; offering resources both within and outside the workplace. While every situation is unique, ensuring your employees have a clear understanding of the health and financial resources available can help them navigate the stressors commonly felt ahead of a vacation or holiday.
In your experience, what are some innovative strategies companies have implemented to support employees before, during, and after their vacations?
- Before vacations, effective workload management is crucial. This includes planning ahead, delegating tasks, and ensuring clear communication about responsibilities. Some companies have introduced ‘pre-vacation checklists’ to help employees organize their tasks and ensure a smooth handover.
- During vacations, it’s important to encourage full disconnection and promote a culture where taking time off is respected and encouraged. Offering ‘digital detox’ programs to help employees fully unplug is just one of many resources employers can provide.
- After vacations, easing the transition back to work is key. Flexible re-entry schedules, such as allowing a half-day on the first day back, can help employees re-adjust. Additionally, having a ‘catch-up’ meeting with a colleague or manager can help employees get up to speed without feeling overwhelmed.
As we conclude, what final piece of advice would you offer to small and medium-sized businesses looking to improve their vacation policies and overall employee satisfaction?
Leaders can also role model taking vacation and disconnecting when not at work. I pride myself on being great at vacation and it benefits my team as well. Those around me see me taking my allotted vacation and are witness to me disconnecting from work when I’m off. My back-up is in place and I’m role modeling for my team that there isn’t any stigma around vacation. In fact, they see that I am better at work when I’ve taken a break!