Cost estimation

Why resilience isn’t just a well-being metric—it’s a business one?

When someone’s out for the long haul, the true cost stretches far beyond the payroll line. Long-term absence affects teams, timelines, culture, and customer outcomes. Yet it often slips through the cracks when budgeting for people strategies.

Direct costs

Continued Salary Payments

During the initial period of sick leave, the employer may continue to pay the salary. This duration and amount can vary depending on company policy and local labour laws.

Medical and Healthcare Costs

If the company offers health insurance that covers mental health services, they might bear higher premiums or specific costs related to the employee's treatment for burnout.

Indirect costs

Replacement Costs:

Hiring a temporary worker or paying overtime to other employees to cover the duties of the absentee can be costly.

Lost Productivity:

The absent employee's work either slows down or must be redistributed among other team members, which can reduce overall productivity.

Decreased Morale:

The absence of a team member might affect the morale of the team, potentially reducing productivity further and increasing the risk of more health-related absences among other employees.

Administrative Costs:

Managing the absence, including adjustments to project timelines or redistributing responsibilities, involves administrative time and effort.

Reintegration costs

Gradual Return to Work:

When the employee returns, they might start with reduced hours or lighter duties, which can extend the period of reduced productivity.

Support and Accommodation:

Additional resources might be required to support the returning employee, such as counseling or changes to their work environment to prevent future burnout.

Of course, any estimate of long-term absence costs is just that: an estimate.

The true impact depends on many moving parts—an employee’s role and seniority, how critical they are to active projects, your internal policies on sick leave, and the resilience of the wider team. Some absences ripple quietly. Others halt momentum entirely. That’s why a single cost figure will always be simplistic. But what’s clear across all contexts is this: prevention is more sustainable than reaction. Investing in programs like Tribe & Thrive—which support personal resilience, set healthy team norms, and offer early tools for navigating stress—helps reduce the frequency, severity, and fallout of long-term absences.

Less fire-fighting. More future-building.

And that’s the kind of return that doesn’t just show up in the numbers—but in the culture you create.