You are absolutely correct that it doesn’t tie up “real” cash- thanks for the correction. What the accrued liability does do, however, is reduce retained earnings (profit). For a publicly traded company in a downturn (or for any company, for that matter), maximizing retained earnings is everything, so minimizing liabilities is huge. Given the volatility of the industry I’m in (semiconductor capital equipment) we’re always planning either for the downturn we’re currently in, or for the next one.
Now, since thread was titled a rant I’ll throw in the final insult which really get’s under my skin. Forced shutdowns. Yes, this is the company’s way of minimizing that accrued liability by forcing everyone to take 2 weeks off at Christmas time, this using all their accrued vacation. You don’t have any vacation accrued, you say? Oh well, what a little unpaid time off at Christmas.
Yes, in the names of productivity and competition, many good deals have gone by the wayside. If I published the details of my leave and retirement packages, you’d all want to shoot me. But, you can look at it two ways:
Sick leave is part of my compensation package. The company owes it to me. Not taking it would be like giving part of my pay back to the company. I’ll use it whether I need it or not.
I’ll only use my sick leave if I really need it. Hopefully, my boss will recognize my dedication and give me a bonus or a promotion.
Both of the above approaches are valid. It depends or your personal situation which one you take. If you are looking for a long-term relationship with a company and to move up the ladder, approach 2 is probably better. But, not all people are looking for that in a job anymore.
Someone’s already mentioned this briefly, but handwashing is the best way to prevent these kinds of illnesses. Wash your hands often, with soap and water. If you don’t have access to a restroom, use the water-less hand cleaner that has become very popular. I am a public health educater here in Georgia, and we have been doing presentations on the importance of handwashing to the schools in our health district. Proper handwashing can prevent a number of illnesses, some quite serious.
Handwashing and a flu shot are your best bet for preventing illness. Of course, if your sick co-workers would stay home, that would help tremendously as well.
I can attest to the fact that accrued sick leave is not a bogus benefit. While burning 500 hours of sick leave while enduring surgeries and chemo therapy for lymphoma, it sure was nice not to worry about a paycheck coming in.
Now about socialized medicine - don’t mentoion htis to any of my friends across the border in Canada about those “benefits” . One had to wait over 4 months to see a specialist for IBS (aaargh)