When Loss Lives On: Why Living Loss Demands Organisational Attention

Grief isn’t limited to death. Divorce, separation, and caring for an ailing parent can trigger deep emotional trauma—what we call “living loss.” These transitions often stay invisible in workplace strategies but carry enormous costs in productivity, mental health, and retention.

At Blaze Coaches, led by Amanda Lee, a 2025 finalist for the Women in Banking & Finance Mental Health Champion, we specialise in trauma-informed recovery for people facing living loss in professional settings.

Living Loss in Australia: The Hidden Reality

In Australia:

• Around 38 % of adults have experienced a breakup; 11 % separation; 17 % divorce. Among those separated, 54 % continue to report emotional impact months later; overall 36 % of breakup-affected people still feel consequences¹.

• Carers for elderly or chronically ill relatives, though harder to quantify in Australian stats are globally linked to increased anxiety, burnout, depression and cognitive strain⁷.

• Safe Work Australia reports that 11 % of serious workers’ compensation claims relate to mental health, with average absence of 37 weeks—significantly higher than for physical injuries³.

Comparative Impact: Australia, UK, and US

Country	Living-Loss Prevalence	Ongoing Impact on Work	Mental-Health Claims / Cost	Formal Leave for Living Loss
Australia	38 % breakup; 11 % separation; 17 % divorce¹	36 % still impacted (54 % of separated)¹	11 % of serious claims; avg 37-week absence³	Rare or none
UK	Similar breakup rates	40 % productivity drop⁴⁵	£48 bn annual productivity loss⁴	Minimal support for separation
US	~50 % adults bereaved or living-loss over two years⁸	Caregiving causes ~6.6 workdays absence/year; ~33 % productivity loss⁷¹⁰	US $17–33 bn cost annually⁹	Standard bereavement leave ≈3 days³

Notes: UK data from Rayden Solicitors / HRZone studies⁴⁵; US data from MetLife and caregiving studies⁷⁹.

The Human and Organisational Toll

Individuals experiencing separation or caregiving responsibilities often report:

• Anxiety, depression, sleep issues, burnout and brain fog¹⁰

• Reduced focus, mistakes and slowed decision-making

• Increased absenteeism or presenteeism, with 23 % taking sick/unpaid leave in the UK context⁴

Workers in the middle of relationship breakdowns may see productivity drop by 40 %, with impacts lasting up to three years⁵. Coworkers and direct reports can suffer too: UK studies indicate a 4 % productivity dip among colleagues and 2.5 % among line managers⁵.

From the US data, caregivers average 6.6 days of work lost per year, productivity dips of 33 %, and elevated turnover—caregiving employees are 70 % more likely to leave⁷¹⁰. Many face financial strain too, with lifetime earnings losses over US $300k for those leaving the workforce entirely⁴.

Why Organisations Must Act Now

Without targeted support:

• Businesses face high turnover: 9 %–10 % leave within a year post-breakup in UK and US data⁵⁴

• Replacement costs can reach 150 % of annual salary per role lostⁿ

• Emotional burdens ripple: disengaged teams, risk of burnout, and reputational damage

Vibeke Vad Baunsgaard, leadership consultant, emphasises:

“I believe discussions on grief belong in leadership just as much as strategy and innovation do. How we acknowledge and navigate loss shapes our capacity for empathy and our strength in guiding others.”⁵

Similarly, Gura of Empathy notes:

“Bereavement must be addressed, and leave is not enough. It’s a big hole in our benefits portfolios.”¹⁴

What Supporting Living Loss Delivers

• Greater employee retention and loyalty

• Reduced error rates and improved decision-making

• Lower absenteeism and presenteeism

• Healthier work culture and deeper psychological safety

Footnotes

1. Australian breakup/separation/divorce prevalence and impact¹ (Relationship Indicators, 2024).

2. Safe Work Australia: mental‑health claims as 11 % of serious claims; avg absence 37 weeks.

3. Rayden Solicitors UK Divorce in the Workplace, 2021.

4. HRZone commentary on UK separation productivity costs (~40 % drop, co-worker impact 4 %)⁵.

5. National Alliance for Caregiving / AARP: US caregivers miss 6.6 workdays/year, cost ~US $25 b in lost productivity⁷.

6. Caregiver burden meta‑analysis: depression in 60 % of carers, career loss in 66 %, drop in well‑being from longitudinal study across Australia/Germany/Netherlands⁰.

7. MetLife Caregiving Cost Study: US employer losses estimated at US $17.1–33.6 b annually.

8. Homethrive report: caregiving reduces productivity ~33 %, increases turnover by 70 %, replacement cost ~150 % salary.