High cost of dying: Employee bereavement costs employers, study finds

Everyone knows that the cost of living has soared in recent years. What may be less understood is the financial toll that the death of a family member can take, not only on individuals but also on their employers.

“We all confront the pain of loss at one point or another; however, when the moment arrives, most of us find ourselves unprepared for the profound impact it has on our families, our jobs and our wellbeing,” said Ron Gura, cofounder and CEO of Empathy. “Our latest research continues to underscore the immense impact of bereavement on employees and highlights the critical need for extended support beyond paid leave. By leveraging these findings, companies can build a more compassionate environment for their employees, lessening their burdens and helping them when they need it most.”

Empathy, which helps families navigate the emotional and logistical challenges of loss, recently surveyed HR professionals about their bereavement policies. Although more than 6 in 10 organizations have policies directly addressing bereavement, 43% offer no additional support beyond time off. Although grief professionals recommend at least 20 days off for those recently bereaved, the average time offered was 5.6 days.

More than 90% of those who have experienced loss report suffering from at least one physical or mental health symptom. This strain extends to the workplace, with 47% of employees dealing with at least one negative repercussion at work and 21% dealing with at least three, including having trouble concentrating and being less productive. Other notable findings include:

• The average person took 15 months to complete all of the administrative tasks to wrap up their loved one’s affairs, or 18 months if they were executor of the estate.
• The average family spent a total of $12,616 on expenses related to their loved one’s passing. The highest single expense is the funeral, which costs an average of $5,666.
• Eighty-four percent of those who experienced loss reported a negative impact on daily life, 35% withdrew from social circles and 21% became estranged from family.
• Ninety-two percent of executors said their work was affected by the loss they experienced. They were twice as likely as non-executors to experience a decline in their reputation at work and twice as likely to have their hours at work reduced.

Related: What Is preventing employees from accessing their mental health benefits?

“By providing a comprehensive understanding of the multifaceted struggles faced by grieving families, from the complex processes they navigate to the persistent financial hardships they endure, we hope to raise awareness of the need for meaningful support to help those bereaved,” Gura said.