Why Employers Must Support Employees During Divorce

• Divorce's negative impacts on employees
• Employer ROI & potential cost savings of a divorce benefit
• Benefits of a divorce benefit for employees
• Benefits for employers
• Hello Divorce’s Employee Benefits Program details
• References

Life transitions are inevitable: the arrival of a child, job changes, health issues, marriage – and, for about half of people in the U.S., divorce. But while it is common for employers to offer benefits to support employees through most of these big moments, adequate employer-provided support for divorce is rare.

The average person who gets a divorce spends two to four years researching before they finally decide to call it quits. This is a highly stressful period in anyone’s life. However, knowing that one’s workplace is supportive can positively impact an employee’s short- and long-term performance. 

Divorce costs American businesses up to $150 billion every year (Harvard Business Review).

Assuming that an employee going through a divorce only needs extra support during the months of their legal proceedings is a mistake. Even before that, most people take months, or even years, to decide to file for divorce. And many couples need to take time during their work days for marital counseling before they decide to end their marriages. Adjusting to big life changes post-divorce carries a heavy burden, too – long after the ink is dry on the divorce paperwork. 

Divorce is a common life event. Nearly half of married employees will get a divorce. So why are we not supporting them through this? 

How divorce can negatively impact employees

It’s no secret that divorce is often an isolating, overwhelming event. People feel the strain before their papers are even filed, and they continue to feel it after their judge signs that final divorce decree. 

Here are some effects of divorce reported by employees:

• 79% said it impacted their ability to work
• 39% admitted it decreased their productivity
• As many as 10% left their employment within a year of divorce
• 60% struggled with their mental health
• 57% did not feel adequately supported by their employers

Rarely do the negative effects start when proceedings begin or end when divorce proceedings are over. The average employee going through a traditional divorce without adequate support loses at least 100 hours of work a year (about two and half weeks) after the divorce. Why? Because the employee is dealing with one or more of the following:

1.  Productivity loss
2.  High turnover/deciding to quit
3.  Increased absenteeism
4.  Workplace errors

Divorce can have a devastating impact on your employees. In one notable example, a research study on nurses going through a divorce most felt unsupported at work and wished for some sort of employee assistance program.  

Your employees need resources, information, knowledge, and tools to mitigate the stresses of divorce and the subsequent life transition. That’s why we built Hello Divorce. 

Antiquated beliefs about divorce scare individuals into believing they need an attorney to complete a divorce when, in reality, 95% of these people may not need this kind of legal help.

Today’s workforce deserves a benefit from their employer that helps them feel seen and cared for during one of the darkest times of their lives.

What’s the employer ROI? How much cost savings can a divorce benefit provide?

Absenteeism and reduced performance cost employers a great deal. But how much, exactly?

According to the U.S. Bureau of Labor Statistics, the average absence rate was 3.2% in 2021. In other words, the average employee missed eight workdays that year. The average divorced employee loses about 21 days of work time the year after divorce – costing employers 2.6 times more than the average employee. This statistic does not even include the absenteeism and loss in productivity before the divorce, which could amount to an even higher cost to employers, considering the amount of time people spend researching divorce before taking any action. 

A divorce benefit encourages your team to be proactive and efficient with their divorce-related tasks. For many, it keeps them out of lawyer offices and courtrooms. 

Beyond cost savings due to reduced absenteeism, there’s turnover. Hiring is expensive and time-consuming. You want to retain your talent. The Society for Human Resource Management reports that most employers invest the equivalent of six to nine months’ worth of an employee’s salary to recruit, hire, and train a new employee. 

Let’s say that 45% of your employees are married. Within eight years, 50% of them will get divorced. And, as noted above, 10% will leave their jobs within a year of their divorce. Let’s say it takes you three months to hire replacements. Had you retained these employees, you would have saved $8.79 per head.

On average, the cost of divorce for an employee earning $20/hour is $8,000.

Benefits of a divorce benefit for employees

A divorce benefit can help your team members before, during, and after their divorce process is complete. Here’s how.

Greatly reduced legal fees

A traditional lawyered-up divorce costs $15,000 or more. This employee-provided divorce benefit grants workers access to an online platform and extra help only when necessary, saving them thousands of dollars and lots of time.

Financial guidance

Your team members gain access to financial advisors and legal professionals who help them make better-informed decisions so they can protect their financial futures.

Comprehensive support 

By making Hello Divorce available to your employees, they gain access to a wide range of resources. This includes educational materials, professional services, and a supportive community – all designed to help them navigate the complexities of divorce.

Enhanced emotional well-being

Hello Divorce is a safe space for employees to share their experiences and receive emotional support from peers and professionals, thus reducing stress and anxiety. Employees in a better headspace are more productive and focused at work.

Better work-life balance

The Hello Divorce employer program includes workplace workshops that provide practical strategies for managing the emotional aspects of divorce while maintaining focus and productivity at work.

Benefits for employers who offer a divorce benefit to their employees

An employee divorce benefit program benefits you, the employer, in numerous ways. In a nutshell, it saves everyone time, money, and stress. Here are some specific advantages you can expect to see. 

Cost savings by reducing long-term productivity loss and absenteeism

A divorce benefit acknowledges that the employer is aware of the potential negative impacts of divorce. An employee who saves time and money by completing their divorce on a professional, trustworthy platform provided by their employer feels valued. They are naturally happier and more productive at work. And, they can stay out of court and probably won’t need to hire lawyers.

You’ll attract better employees, too. Companies that invest in supporting their employees during difficult life events like divorce are more likely to retain their talent.

Enhanced employee financial and emotional well-being

Traditional benefits packages are evolving to meet the diverse needs of today's workforce. There is a growing trend in the corporate world to offer holistic and family-friendly employee benefits.

Companies that offer comprehensive wellness programs with an emotional and mental health component have reported higher employee engagement and satisfaction.

Positive company culture and enhanced employer reputation

Inclusivity and diversity are priorities in American work culture. You can help break down the stigma surrounding divorce by offering this benefit. 

The average divorced employee loses 168 hours of work time the year after divorce as they adjust to their new normal.

How Hello Divorce’s Employee Benefits Program can help

Hello Divorce is a leader in divorce and family reorganization. To more fully support people during and after divorce, we offer an employee benefit program for employers who want to support their team members going through a divorce. 

Hello Divorce For Employers offers a comprehensive platform that includes the following as part of any plan:

• Educational resources: Expert-written articles, videos, and webinars on divorce-related topics such as legal guidance, financial planning, and emotional support.
• Online community: Employees can connect with others going through divorce.
• Professional services: Access to a vetted, experienced network of lawyers, financial advisors, mediators, therapists, and life coaches who specialize in divorce.
• Workshops: On-site or virtual workshops for employees and managers on navigating the emotional and practical aspects of divorce while maintaining workplace performance.
• Self-service tools: Calculate estimated child support, understand your home value, prepare the mountain of court forms (without all the legal jargon or red tape), and more.
• Legal assistance: Discounted legal services for divorce-related matters, including document preparation, mediation, and representation.
• Real-time support from our caring team: No offshore call centers or limited knowledge here. Your employees can connect via phone or chat with someone who gets it and can explain options.  

Offering Hello Divorce as a benefit to your workforce gives them a place to educate themselves for what lies ahead, dramatically reducing stress, increasing financial stability, and setting them up for a better next chapter with bolstered productivity and focus. To learn more about Hello Divorce’s Employee Benefits Program, click here or email us.

References 

Marriage & Family Wellness: Corporate America’s Business? 2006. A Marriage CoMission research report.