Grief in the workplace can significantly impact employee well-being and productivity, which can translate to lower revenue. According to Maureen Desmond, founder and CEO of M. Desmond Coaching and Consulting, and Michelle Arentz, workforce development consultant and owner of Strategic Talent Rx, grief costs U.S. businesses $225 billion per year due to lower productivity and performance, loss of business, and absenteeism.

Grief and loss are often described as the most common human experience. Yet, many people (even leaders) struggle with navigating grief, sadness, and absence and lack the skills and awareness needed to process loss effectively or to provide meaningful support to those who are grieving.

While grief can have a dramatic impact on productivity, morale, and retention, its effects can be lessened when teams are prepared to handle it.

Different Forms of Workplace Grief

Grief can stem from any significant change or disruption. Desmond emphasized the importance of recognizing grief in all its forms. Grief is “the normal and natural emotional reaction to loss and change of any kind,” Desmond says. “It’s the conflicting human emotions caused when things that we are familiar with change.”

In the workplace, grief can arise from layoffs, leadership changes, mergers, or even personal struggles like a serious diagnosis. Consider these examples.

• Personal loss. Employees dealing with the death of a family member, a serious illness, or other personal tragedies often struggle to balance their emotions with workplace responsibilities. Without proper support, they may experience burnout, disengagement, or prolonged absenteeism.

• Workplace loss. This includes the sudden loss of a colleague, a long-term leader stepping down, or sudden shifts in company culture that can leave employees feeling uncomfortable and emotionally drained. Workplace grief in these situations often leads to reduced morale, dips in productivity dips, and even retention issues.

• Organizational shifts. Mergers, acquisitions, layoffs, and major restructuring can create uncertainty, anxiety, and grief over the loss of job security, familiar colleagues, and company identity. Employees may experience survivors’ guilt or fear for their future, affecting engagement and trust.

• External events. Natural disasters, social unrest, economic downturns, and public health crises can take a toll on employees’ well-being. An example of this is the COVID-19 pandemic which brought grief on multiple levels. Employees lost loved ones, faced health fears, and struggled with job insecurity. Many workplaces had to transition to remote work overnight, leading to isolation, burnout, and fear for job stability.

How to Handle Grief with Sensitivity

Desmond points out that “92% of employees said they’re more likely to stay with an empathetic employer, and 84% of CEOs believe that a company’s financial performance is tied to empathy in the workplace.” Employees often turn to their direct managers for support during times of grief. While having a clear bereavement and support policy is essential, it’s also vital for leaders to demonstrate genuine care and understanding. A well-trained management team can help foster a culture of compassion without compromising workplace productivity.

It’s essential to train leaders in compassionate communication. Educate managers about how to offer condolences, listen actively, and create a safe space for grieving employees. A critical first step, according to Arentz, is the simple act of acknowledging grief. “Whether it’s an internal communication or a quiet conversation, letting your team know you’re aware of the challenges some might be facing can go a long way,” she says.

Also, have a documented plan in place for adjusting workloads, flexible scheduling, and job-sharing. This helps organizations support grieving employees while maintaining productivity.

Keep in mind that grief manifests differently across cultures, backgrounds, and personal circumstances. Know how to approach each situation with respect and sensitivity and have guidelines in place for addressing grief in a diverse and inclusive way.

Specialized workshops, individual, and group training programs can give managers the skills they need to navigate grief successfully.

Provide Access to Mental Health and Counseling Resources

Grief can deeply impact an employee’s mental well-being, which affects focus, productivity, and overall job satisfaction. When companies proactively offer mental health support, they promote a culture of care and resilience. This helps employees navigate loss while maintaining a sense of stability at work.

One example is creating an Employee Assistance Program (EAP) that includes grief counseling. A strong EAP isn’t just a perk. It’s a strategic investment in employee retention and well-being. Google, for example, recognizes that supporting employees through personal hardships leads to higher engagement and loyalty, ultimately reducing turnover costs. Using data and employee feedback, Google continuously refines its approach to mental health and grief support. Other companies, like Amazon and Microsoft, have built successful EAPs that provide grief counseling, ensuring their workforce feels valued and supported during difficult times.

Establish a Crisis Response Plan

A workplace tragedy, like the loss of an employee or a large-scale crisis, can deeply impact team morale and overall productivity. Without a structured response plan, confusion and emotional distress can lead to decreased engagement, higher absenteeism, and even turnover. Companies that handle these situations with empathy and efficiency not only support their employees but also protect their bottom line.

An effective crisis response plan includes a dedicated response team. Designate HR and leadership personnel to manage communication, coordinate support efforts, and ensure consistency in response.

It’s also vital to offer immediate counseling and ongoing support. Provide access to grief counselors and then regularly check in with affected employees to prevent long-term disengagement.

Measure and Improve Your Grief Support Plan Over Time

A grief support plan isn’t a one-and-done initiative. It should evolve to meet the changing needs of all individuals. Assess its impact continuously to ensure it provides meaningful support while also protecting long-term productivity and retention. To accomplish this, follow these three steps:

1. Gather feedback from employees who have used the support system. Anonymous surveys or one-on-one discussions can reveal gaps and opportunities for improvement. Then, conduct quarterly or semi-annual reviews of your workplace grief support initiatives.
2. Track key metrics. Monitor absenteeism, turnover, and engagement levels to see if grief-related challenges are affecting business performance.
3. Adjust policies based on real experiences. Flexible bereavement leave, expanded counseling services, or peer support networks may become more relevant as your workforce evolves.

Compassion Is Good for Business

Grief is an inevitable part of life. When it enters the workplace, it can have a profound impact on overall business performance. A proactive, compassionate approach to grief support isn’t just about doing what’s right. It’s a strategic investment in your company’s stability. Compassionate leadership is vital for fostering a culture of care. By modeling kindness and building a more empathetic workplace, leaders do more than just help employees navigate loss, they create a culture that ensures long-term organizational success.