How 82% of workers sabotage their own productivity—and the strategic approach that transforms guilt into competitive advantage

We recently came across an article that explored why employees feel guilty taking time off work. The piece highlighted a workplace paradox that many of us recognize: despite growing conversations about work-life balance, employees still struggle with guilt when using their earned vacation days.

The article outlined several key factors contributing to this guilt—from “always-on” workplace expectations to economic uncertainty and fear of falling behind. But here’s what really caught our attention: this guilt isn’t just a personal problem—it’s a business challenge that’s costing companies in ways they might not even realize. 

The Hidden Cost of Vacation Guilt

The statistics are staggering. ADP Canada’s 2023 Time-Off Tax report found that only 31% of Canadian employees took all their vacation days. And for those who did, the average “time-off tax” included 18 hours of extra work before and after their time away.

Expedia’s 2022 Vacation Deprivation report showed that 55% of Canadian workers felt vacation-deprived, with 85% reporting that time off helped them return more refreshed and motivated.

South of the border, 82% of Americans report working during their vacation, and 1 in 3 won’t take time off for fear of being laid off. These aren’t just numbers—they represent a workforce that’s burning out while trying to prove their value.

“We can confidently say that respecting time off ranks among the best strategic decisions we’ve made.”

– Julie Labrie, president BlueSky Personnel Solutions

The Science Behind the Paradox

Here’s what every leader needs to understand: research by Mark Rosekind (NASA scientist and fatigue expert) found that taking vacation increased performance by 80%, with employees showing a 40% improvement in reaction times.

The science is clear. Time off enables cognitive restoration. It supports better sleep, gives our brains space to make creative connections, and creates the distance needed for strategic insights.

Breaking the Cycle: It Starts with Leadership

Every “quick email” you send from vacation sends a clear message: work always comes first. Your team notices, internalizes the pressure, and replicates the behavior.

The solution requires intentional leadership action:

• Model Complete Disconnection
  Take real vacations where you’re genuinely unreachable. Your out-of-office message should mean exactly that. If you lead, lead by example.
• Address the Fear Factor
  Speak openly with your team about vacation and job security. Many employees worry that stepping away signals a lack of commitment. Clarify that using earned time off is not only supported—but expected.
• Create Systems, Not Dependencies
  If your business can’t function when key people take vacation, you don’t have a vacation problem—you have a systems problem. Build backup plans and cross-training into your operations so that no one feels they’re risking the company by taking a break.
• Reinforce the Value of Time Off in Conversations
  Don’t just approve vacation requests—encourage them. Ask team members how you can help them fully disconnect, and follow up to welcome them back in a way that supports reintegration.

 

The Bottom Line

The evidence is clear: time off doesn’t hurt business productivity—it enhances it. Companies that embrace this reality will find themselves with more engaged employees, better outcomes, and significant competitive advantages.

The question isn’t whether we can afford to encourage vacation time—it’s whether we can afford not to.

Three years after implementing our 4-day work week and genuine disconnect policies, I can confidently say that respecting time off ranks among the best strategic decisions we’ve made. The surprise many leaders express when they learn about our approach reflects a broader blind spot: many still believe that constant availability equals better business results.

The truth is exactly the opposite—creating environments where people can truly disconnect leads to more innovative, productive, and engaged teams.

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