The Hidden Cost of Stress in the Workplace
Stress-related absenteeism costs Dutch employers thousands of euros per employee each year. Discover the hidden costs of workplace stress, who is most at risk, and why prevention is a smarter investment than recovery.
5/15/2026
The Hidden Cost of Stress in the Workplace
Employee stress is often discussed in terms of wellbeing, mental health, and work-life balance. But stress also has a very real financial impact on businesses. Research published in the Journal of Occupational Rehabilitation examined the costs of stress-related sick leave for Dutch employers and revealed something important: stress symptoms are not only affecting employees personally, they are also costing companies significant amounts of money. For employers, this raises an important question:
What does it actually cost a company when stress is ignored?
Stress Is More Expensive Than Many Companies Realize
When employees experience ongoing stress without sufficient recovery, it can eventually lead to burnout symptoms, reduced concentration, fatigue, decreased motivation, and long-term sick leave. According to the Dutch study “Sick Leave Due to Stress, What are the Costs for Dutch Employers?”, employees experiencing stress-related complaints are absent for significantly longer periods than employees on regular sick leave. The study estimated that stress-related absenteeism can cost employers thousands of euros per employee each year due to:
Continued salary payments during sick leave
Productivity loss
Temporary replacement staffing
Increased pressure on remaining team members
Reintegration and recovery support
Higher employee turnover risk
In the Netherlands, employers are legally required to continue paying at least 70% of an employee’s salary for up to two years during sick leave. This means long-term stress-related absence can quickly become a major financial burden. Research from the University of Amsterdam also highlights the growing societal cost of burnout. According to their findings, burnout-related absenteeism costs the Dutch economy billions of euros annually through lost productivity and healthcare-related expenses.
How Long Are Employees Absent Due to Stress?
Stress-related absenteeism is often not short-term. Employees dealing with burnout symptoms or chronic stress can be absent for weeks or even months. Recovery from prolonged stress is rarely immediate because the nervous system and energy levels need time to recover. For companies, this creates challenges beyond financial costs:
Projects slow down
Teams experience higher workloads
Workplace morale can decline
Managers spend more time on reintegration and planning
Remaining employees may become more vulnerable to stress themselves
Stress therefore tends to create a ripple effect within organizations.
Who Is Most at Risk?
Recent findings from the University of Amsterdam show a particularly strong increase in burnout symptoms among employees between the ages of 25 and 35. Researchers explain that many young professionals are simultaneously navigating:
Career pressure
Financial stress
Buying a home
Building relationships
Becoming parents for the first time
The pressure to constantly prove themselves professionally
This combination creates what researchers describe as a “toxic combination of stress factors.” Importantly, burnout levels have increased across nearly all age groups over the past decade, showing that stress-related overload is becoming a broader workplace issue rather than an individual problem.
The Cost of Presenteeism
Not all stress-related costs come from employees staying home. A major hidden factor is presenteeism — when employees are physically present at work but mentally exhausted, overwhelmed, or unable to perform at their normal capacity. This can lead to:
Lower focus and efficiency
Reduced creativity and problem-solving
More mistakes
Increased tension within teams
Lower engagement and motivation
In many workplaces, this becomes normalized until employees eventually reach burnout or require long-term leave.
Prevention Is Financially Smarter Than Recovery
Many companies only invest in support once employees are already overwhelmed. But prevention is often far more effective. Both for employee wellbeing and for business performance. Creating moments for recovery during the workday can help employees regulate stress before it develops into long-term exhaustion. This does not necessarily require dramatic organizational changes. Small but consistent wellbeing practices can already make a meaningful difference.
Wellbeing Is Not a Luxury — It Is a Business Strategy
The conversation around workplace wellbeing is changing. Supporting employees is no longer only about offering perks or wellness trends. It is increasingly becoming part of sustainable business strategy. Healthy employees are more resilient, engaged, and capable of performing consistently over time. Investing in stress prevention and recovery support is not simply about avoiding burnout. It is about creating work environments where people can function well, think clearly, and sustain their energy long-term. And financially, the cost of prevention is often far lower than the cost of burnout.
Final Thoughts
Stress in the workplace is not just a personal issue — it is an organizational one. The financial impact of stress-related absenteeism shows that employee wellbeing and business performance are deeply connected. Companies that proactively support stress management and recovery are not only investing in their people. They are also investing in the long-term health, stability, and performance of their business.
Sources:
de Vroome, E., et al. Sick Leave Due to Stress, What are the Costs for Dutch Employers? Journal of Occupational Rehabilitation (2022)
University of Amsterdam — The Cost of Burn-outs (2025)