Supporting your team through divorce or separation

Following nearly two years of pandemic-related lockdowns, uncertainty, and unpredictable restrictions, many Australians have re-evaluated their careers. Creating a movement in the workplace like never before seen, many have prioritised work-life balance.

In today’s competitive job market, employees (particularly high-performing talent) expect a high-level of support from their employers. Things like counselling and holistic wellness opportunities are no longer nice-to-have options, rather “must haves”. And today’s talent aren’t satisfied with Friday night drinks or the occasional off site. This is reflective at the point of talent engagement where in the past, remuneration, career progression and work life balance used to be the typical primary motivators.

However, during the course of the pandemic, we saw a greater shift towards working from home, and the inherent work health and safety and other ramifications that stem from that.

Many leading businesses are looking to create a compelling support structure for their team that goes beyond the traditional policies – in order to stand out to new employees and retain talented teams.

Your company’s benefits impact your reputation – how you are known in your industry, and beyond. Your workplace might support some wellbeing incentives, but what about support for when relationships breakdown?

Supporting your team through divorce or separation

Although statistics show that 33% of Australian marriages will end in divorce, countless more de facto or partnership relationships will fall apart each year as well. In fact, the divorce tally in 2021 was forecast to be a huge 52,117, a rise of 4.3% from 2020. These numbers have been on the rise since the 1970s when the Family Law Act introduced no fault divorce. Ongoing pressures on relationships – from COVID-19 lockdowns, unprecedented inflation and the rental crisis – have played a part as well.

While you may feel that these statistics do not impact you personally, divorce and separation are certainly impacting a large percentage of Australians in 2022. And they are certain to impact every workplace as well.

As a manager or employer it’s critical that you understand how divorce or separation could impact your workplace, and how you can support your team if they’re faced with this bumpy and emotional terrain.

Why does it matter?

At any given time, there may be team members in your workplace going through a divorce or separation, or leaving a relationship. Almost invariably this will impact the employee’s work life, as well as their personal life.

Loss of productivity

Researchers estimate that a divorcing employee’s performance can decline between 50% to 75% due to a loss of focus and motivation, as well as time spent managing the legal, financial and psychological issues that arise. And this can cost a workplace thousands per year in lost productivity.

Having the right support in place to help your team during these difficult times is not only a benefit to the employee, but to your business as well.

Higher staff turnover

All life changes can lead to turnover, and divorce and separation are no different. Childcare and home responsibilities, higher financial obligations and more can begin to fall more heavily on the employee’s shoulders making it more difficult for them to focus on their work life in the same way. In fact, one study out of the UK shows that nearly 10% of employees going through divorce or separation felt they had to leave their jobs as a result.

Employee turnover can have a significant impact on your bottom line. The effective cost of replacing an employee can be anywhere between 30% and 150% of their salary (depending on your industry). Even on the lower end of this estimate at 30% of their salary, this can be a substantial expense for any business.

Poor employee culture

Your support of your employees – whether they’re going through a divorce or separation or not – is a critical part of your overall culture. Your ability to support them when they are going through difficult times can create a positive workplace culture which has fantastic benefits, including:

• improved teamwork
• increased morale
• increased productivity
• greater efficiency
• enhanced retention
• increased job satisfaction
• better collaboration
• improved job performance
• reduced stress

On the other hand, if you aren’t able to offer support or end up adding to the employee’s distress and difficulties due to workplace culture, those benefits will flip into their negative counterparts. You could expect decreased teamwork and collaboration and lowered productivity and job performance.

Implementing a corporate employee assistance program

Your employees are people first and foremost. And that means they won’t always be able to leave their personal lives at home, particularly during a relationship break down.

When considering a corporate employee assistance program, look for ways to support your team both during and after a divorce or separation. This might include:

• financial advice
• legal advice
• holistic health and wellness support and advice
• counselling
• childcare support
• additional leave time
• a flexible work schedule
• one-on-one time
• leave for domestic violence

Whether you need all of these elements in your own workplace, or just some of them, depends on your industry and your employees. However, your support is vital. It will bring benefits to your employees of course, but also to your business as a whole.

Bill Kordos, our head of family law in Victoria, has observed that often employers need advice on their obligations if they receive a subpoena about their employees, or they themselves are joined to proceedings.

“With the staff, we have formed close ties with the business contacts and without exception the employees have provided excellent feedback and gratefulness for their employer’s support during their time of need”.

For one of our ASX listed companies we partner with nationally, we have been successfully providing law support to their employees.

“Our team feel we have gone the extra mile to support them and those who come to our company through this relationship. AFL do what they say but in an empathetic and holistic way with a commitment to our people and clients to support them through their personal relationship issues. They are great for our company.”

David Berlusconi is the Human Resources Manager at Australian Family Lawyers