According to the new provisions of Law 27, it is now necessary to incorporate psychosocial risk factors (PSRFs) into existing prevention measures. There is also a clear link between compensation and the prevention of PSRFs.
The most recent provisions of the Act to Modernize the Occupational Health and Safety Regime (Bill 27) have brought psychosocial risks (PSRs) and their aggravating factors to the forefront of organizational concerns. Since then, one question has become pressing: What should be done?
Risk factors, which often foreshadow the onset of psychosocial risks, are generally addressed from a preventive perspective. From this perspective, compensation can be used as one of the tools to mitigate these risks. The following paragraphs highlight the mitigating effects of adequate and consistent compensation on the consequences of psychosocial risk factors among employees.
To begin with, workloads are unbalanced when the expected volume is significantly lower than what is required. The result: a discrepancy between the services for which an employee is compensated and the additional tasks added to their role. Fair compensation considers a clearly defined job description: that is, an employee’s pay is typically representative of the tasks and responsibilities assigned to them according to their job description.
When faced with a temporary increase in workload, an employee who feels fairly compensated will find it easier to accept this additional responsibility. Since compensation is closely linked to attracting and retaining talent, it is important to plan for the human resources needed to maintain a reasonable workload and, if necessary, to address any shortages through hiring or a restructuring of roles.
Decision-making autonomy must also be proportional to compensation, both of which should reflect the individual’s experience and qualifications. Too much autonomy for too low a salary would inevitably be a sign of dissatisfaction, whereas the opposite would be a managerial inconsistency.
Organizational fairness is perhaps the factor most closely linked to compensation. In an age where money dictates most of our decisions, it serves as a benchmark for comparison. Fair compensation- based on the type of position, level of responsibility, experience, and skills of the employee- should therefore strengthen staff confidence in the organization. If this fundamental working condition is objective and consistent, it tends to lend legitimacy to other organizational decisions.
Finally, and unsurprisingly, recognition is perhaps the risk factor most effectively mitigated by fair pay. Although praise and thanks are rewarding, financial compensation remains an unambiguous symbol of appreciation for a result or effort at work. Whether in the form of a bonus or a promotion, the employee sees their contribution directly rewarded. Given the fast pace of business, managers do not always have (or take) the time to verbally express their appreciation to their staff. Compensation then serves as a substitute for verbal acknowledgment, filling this gap to restore the sense of value for the work performed.
Admittedly, payroll costs account for a significant portion of a company’s budget. However, compensation should be viewed as an investment in employee well-being and, as such, as a factor that can reduce costs associated with the many consequences of psychosocial risks (turnover, hiring, sick leave, work attendance despite illness, absenteeism, etc.). In short, and simply put, you have to pay well to spend less. The recent modernization of Quebec labor law and the formal inclusion of psychosocial risks among an employer’s obligations thus provide an additional incentive to base compensation on objective criteria and to financially recognize certain qualities valued by the organization. This is not about buying the silence of one’s staff, but rather about adopting a preventive approach aimed at reflecting each person’s expertise and contribution to the organization, in order to promote well-being at work.
By Eva Bachini, LL. B., M. Sc.
Advisor • Compensation and Human Resources Consulting Services
