The Cost of Divorce to Business

The Cost of Divorce to Business

The Florida Academy of Collaborative Professionals Board of Directors has approved an ambitious fundraising plan that includes seeking corporate sponsorships to help promote the Collaborative Process.

So why should businesses, both big and small, support a professional association?

Because the FACP has a mission that serves the best interests of businesses.  After all, what does divorce cost businesses?

Studies reveal that productivity and overall company morale can decrease as workers deal with the effects of divorce.

On a classic rating scale of stressful life events, divorce consistently ranks No. 2 – second only to the death of a spouse. The employee’s financial worries, time away from work, and emotional stress while on the job will naturally affect their productivity, even for those workers whose jobs are their emotional haven. 

Researchers estimate that every ten divorcing employees cost a company more than $83,000 a year in lost productivity. This assumes a drop in worker performance of between 50% to 75% as well as time off spent dealing with legal, financial, and psychological issues related to divorce. It also includes an estimated loss of supervisor productivity as a result of time spent dealing with issues of performance and productivity for employees affected by divorce. 

(Source Note: “The Cost of Divorce to Employers”, by Guest Columnist Rosemary Frank, Nashville Business Journal. Based on an average wage of $19.50/hr)  

Loss of productivity and decreased performance are easier to measure than other more complex problems that divorce can present for employers. Company morale is important and can suffer when a considerable number of workers are in a state of personal crisis and/or sharing their problems with others. The sense of being alone and unsupported is one of the major side effects of the divorce process. For many employees, the workplace community feels like a natural source of help in dealing with feelings of isolation and victimization.

FACP’s mission is to educate the public on the advantages of utilizing the Collaborative Process in divorce.  Because the Collaborative Process seeks to encourage mature, cooperative and non-adversarial behavior amongst both the parties and the professionals while helping the parties reach an efficient, mutually agreeable settlement of issues, usually in less time and at less of a cost than litigation.

What could be better for business!

Author:

Edward S. Sachs CPA ABV/CFF

www.edsachscpa.com

(305) 610-2395

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