Building an Economy that Works for Everyone

Paid sick days: Benefits to employers

Evaluating Paid Sick Leave: Social, economic and health implications for Seattle

From the report Evaluating Paid Sick Leave
Part 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |10

Many employers have long recognized that providing good benefits is essential to attracting and retaining good employees.

Multiple studies have found that providing paid sick leave results in higher morale and productivity, less absenteeism, and lower rates of turnover. Providing paid sick leave that is available for the care of sick family members has been shown to increase firm profits.

Turnover is particularly costly for businesses. Estimates of the direct cost of losing and replacing an employee range from 25% to 50% of annual pay for hourly workers, and much more for highly skilled employees.

That means that replacing a half-time employee earning $9.00 per hour directly costs an employer $2,340 to $4,680. Replacing a full-time $12.00 per hour worker runs $6,000 to $12,500. Indirect costs of lost productivity add more.

Policies that support work/life balance in general and flexible sick leave in particular result in better retention and measurable declines in employee turnover in all types of businesses.

  • Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More To Read

February 22, 2024

Why Is Health Care Declining in Washington? Look to Hospital Consolidation

People are hurting in our state. And it’s no accident.

February 2, 2024

What is REET and Why Do We Need to Reform It?

Washington State lawmakers have the chance to make a progressive tax more progressive and provide a permanent funding source for affordable housing

January 23, 2024

Report: Washington no longer has the most regressive tax structure in the nation

This is both cause for celebration and a call to action