Reduce sick leave and cut insurance costs with flexible pay
Reduce sick leave and cut insurance costs with flexible pay
Insurance costs are one of the heavier line items in many company budgets. Most leaders just accept them as a necessary expense — pay the bill, move on. But few stop to ask: what actually drives the price of sick leave insurance?
The answer, in large part, is risk. When employees are frequently out sick, insurance providers raise their risk assessment. That means higher premiums. And in a time when absenteeism is rising, it’s no surprise that costs are, too.
One measure that is rarely discussed — but clearly effective — is flexible salary.
Insurance costs are one of the heavier line items in many company budgets. Most leaders just accept them as a necessary expense — pay the bill, move on. But few stop to ask: what actually drives the price of sick leave insurance?
The answer, in large part, is risk. When employees are frequently out sick, insurance providers raise their risk assessment. That means higher premiums. And in a time when absenteeism is rising, it’s no surprise that costs are, too.
One measure that is rarely discussed — but clearly effective — is flexible salary.
Christoffer Skoe
Christoffer Skoe
May 28, 2025
May 28, 2025
Financial stress is a real health risk
Financial stress is a real health risk
If Nordic Health Report 2024 shows a strong link between financial stress and negative workplace stress. 88 percent of Nordic employees report feeling stressed in everyday life — and for many, personal finances are a major part of the problem. In Finland, 36 percent say financial pressure is their primary stress factor. In Norway, the number is lower — but still significant.
Chronic financial stress contributes to sleep problems, difficulty concentrating, and burnout. The report reveals that over half of those affected have been stressed for more than six months — and this stress often leads to sick leave. That absence, in turn, raises the cost of insurance for employers.
If Nordic Health Report 2024 shows a strong link between financial stress and negative workplace stress. 88 percent of Nordic employees report feeling stressed in everyday life — and for many, personal finances are a major part of the problem. In Finland, 36 percent say financial pressure is their primary stress factor. In Norway, the number is lower — but still significant.
Chronic financial stress contributes to sleep problems, difficulty concentrating, and burnout. The report reveals that over half of those affected have been stressed for more than six months — and this stress often leads to sick leave. That absence, in turn, raises the cost of insurance for employers.
Sick leave drives up insurance premiums
Sick leave drives up insurance premiums
Insurance pricing is all about risk. If your employees are frequently absent — or if your organization shows patterns of high health strain — it affects your premium. Even in group coverage, your company ultimately pays for the risk level your team represents.
For companies with high absence rates, the long-term costs can be substantial — especially if they hold health insurance, treatment insurance, and coverage tied to disability or long-term sick leave.
And if one of the root causes of absence is financial stress, then it makes sense to focus on solutions that prevent it.
Insurance pricing is all about risk. If your employees are frequently absent — or if your organization shows patterns of high health strain — it affects your premium. Even in group coverage, your company ultimately pays for the risk level your team represents.
For companies with high absence rates, the long-term costs can be substantial — especially if they hold health insurance, treatment insurance, and coverage tied to disability or long-term sick leave.
And if one of the root causes of absence is financial stress, then it makes sense to focus on solutions that prevent it.
Flexible pay reduces financial stress
Flexible pay reduces financial stress
Real-time pay, or Earned Wage Access (EWA), allows employees to withdraw wages they have already earned before the regular payday. That means they don’t have to wait three or four weeks to cover unexpected expenses.
Less debt means less financial stress. This makes people more stable employees and reduces the chance of absence related to mental and physical strain.
Real-time pay, or Earned Wage Access (EWA), allows employees to withdraw wages they have already earned before the regular payday. That means they don’t have to wait three or four weeks to cover unexpected expenses.
Less debt means less financial stress. This makes people more stable employees and reduces the chance of absence related to mental and physical strain.
Lower risk leads to lower insurance premiums
Lower risk leads to lower insurance premiums
When absence rates drop, so does the insurer’s risk. That strengthens your negotiating power as an employer.
Insurance providers look at absenteeism trends, your industry, workforce demographics, and any documented health initiatives when pricing group plans. At Celeri, we believe flexible pay should be part of that conversation — a proactive step toward reducing financial strain and promoting workplace wellbeing.
This is especially relevant for industries with high short-term sick leave or frequent staff turnover. With better staffing continuity, it becomes easier to keep insurance costs low and predictable.
When absence rates drop, so does the insurer’s risk. That strengthens your negotiating power as an employer.
Insurance providers look at absenteeism trends, your industry, workforce demographics, and any documented health initiatives when pricing group plans. At Celeri, we believe flexible pay should be part of that conversation — a proactive step toward reducing financial strain and promoting workplace wellbeing.
This is especially relevant for industries with high short-term sick leave or frequent staff turnover. With better staffing continuity, it becomes easier to keep insurance costs low and predictable.
A simple change with measurable impact
A simple change with measurable impact
Flexible salary does not require any major system changes since the solution can be linked to existing payroll and accounting systems as well as existing time registration systems. It is not about paying out more, but about providing access to money that has already been earned.
At the same time, it reduces the number of requests for salary advances, creating better predictability for the finance department.
Flexible salary does not require any major system changes since the solution can be linked to existing payroll and accounting systems as well as existing time registration systems. It is not about paying out more, but about providing access to money that has already been earned.
At the same time, it reduces the number of requests for salary advances, creating better predictability for the finance department.
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