As an employer, you always run the risk of an employee falling ill. Besides being very unpleasant for your employee, it can also have a significant (financial) impact on your company. Work that comes to a standstill, possible replacement and administration: it's all part of it. Being financially well-prepared can save you a lot of costs and worries.
The biggest cost with a sick employee is often the continued payment of wages during illness. In the Netherlands, employers are legally obliged to continue paying the wages of a sick employee for up to two years. This can amount to 70% to 100% of the salary, depending on the collective bargaining agreement and the agreements within the company. As an employer, you can insure yourself for the costs of continued wage payment. In addition to continued payment of wages, there are other costs that the employer must bear:
Occupational health and safety services:
Employers are required to have a basic contract with an occupational health and safety service or company doctor to meet legal obligations around sick leave. The cost of a health and safety service can vary depending on the services purchased, such as absence counseling. In addition, a health & safety service can help you meet legal obligations, such as a Risk Inventory & Evaluation (RI&E).
Replacing the sick employee:
Hiring replacement staff involves additional costs. And dividing the tasks among current employees can create additional pressure on the team, which can lead to more downtime for your staff.
"Absenteeism costs can put your business at risk. With absence insurance, you can cover the biggest risk."
Recovery and reintegration programs:
Employers are required under the Gatekeeper Improvement Act to make efforts to reintegrate sick employees. This can entail costs for interventions that contribute to a successful return to work.
These costs can add up considerably, especially with long-term absenteeism. Therefore, it is wise to have a good absenteeism insurance. Absenteeism insurance can significantly reduce the financial risks by paying out a large portion of the salary continuation and reintegration costs.
In summary, the cost of a sick employee consists not only of continued salary payments, but also additional costs such as interventions and replacements. A good absence insurance policy is essential to control these costs and protect your company from the financial consequences of sick leave.
