By David Adamson
Fertility rates [1] around the world, including in the United States, have been on a steady decline for decades. This trend, driven by a range of factors including economic pressures, changing societal norms, and delayed childbearing, presents significant implications for employers.
As the workforce diversifies and as family structures evolve, there is a growing expectation among employees that their employers will offer comprehensive support for family-forming endeavors. This expectation is not just a matter of personal preference but is increasingly becoming a strategic business imperative.
Employers that fail to address the needs of their employees in this regard risk losing talent and suffering from decreased employee satisfaction and productivity. On the other hand, those that proactively offer comprehensive, cost-effective, and flexible family-forming benefits can foster a more loyal, engaged, and productive workforce.
The Current State of Fertility and Workforce Implications
Fertility rates in the United States have been declining steadily, with the total fertility rate reaching a historic low of 1.64 births per woman in 2020, well below the replacement level of 2.13 births per woman [2]. This decline is not isolated to the United States; it is part of a broader global trend driven by various factors, including increased educational and career opportunities for women, economic uncertainties, and shifting societal norms around marriage and childbearing.
For employers, these demographic changes have profound implications. As employees delay starting families, fertility issues become more prevalent, with one in six [3] couples facing difficulties in conceiving. This reality is not limited to heterosexual couples; single individuals and members of the LGBTQ+ community also increasingly rely on fertility treatments to build their families. These challenges are compounded by the fact that fertility treatments, particularly in vitro fertilization (IVF), can be expensive and often not covered by traditional health insurance plans.
The impact of infertility and the associated stress on employees can be significant. Employees struggling with fertility issues may experience decreased job satisfaction, increased absenteeism, and lower productivity. Additionally, younger generations entering the workforce are increasingly prioritizing employers who offer comprehensive fertility benefits as part of their overall benefits package. For these reasons, it is critical for employers to recognize the growing importance of family-forming benefits and to consider how such offerings can enhance their ability to attract and retain top talent.
The Strategic Value of Offering Family-Forming Benefits
Offering family-forming benefits provides several strategic advantages for employers. First and foremost, these benefits serve as a powerful tool for recruitment and retention. In a competitive job market, where high-quality candidates have many options, inclusive benefits packages that address the diverse needs of employees can set an employer apart. Studies have shown that more than half of employees expect their employer to cover family-planning services and nearly 88% [4] would consider changing jobs to access better fertility benefits.
Beyond recruitment, family-forming benefits also play a crucial role in enhancing workplace productivity. Infertility and its treatments are often accompanied by significant stress and emotional strain, which can negatively impact an employee’s ability to perform at their best. By providing support for these challenges, employers can help reduce absenteeism and improve overall job performance. Employees who feel supported in their personal lives are more likely to be engaged, productive, and loyal to their employer.
Moreover, offering comprehensive family-forming benefits signals a company’s commitment to diversity, equity, and inclusion (DEI). These benefits support a wide range of family-building journeys, including those of single parents by choice and LGBTQ+ couples.
Cost-Effective Solutions for Employers
While the benefits of offering family-forming support are clear, many employers are understandably concerned about the potential costs associated with such programs. Fertility treatments, particularly IVF, can be expensive, with a single cycle costing anywhere from $12,000 to over $30,000 [5]. However, innovative financial models and strategic partnerships can help employers offer these benefits without breaking the bank.
One effective approach is to leverage payment plans that cover multiple cycles of IVF at a reduced rate. These plans not only provide cost savings but also increase the likelihood of successful outcomes by allowing for more than one attempt at pregnancy. Employers can also explore partnerships with fertility networks that offer discounted rates and evidence-based treatment plans designed to avoid unnecessary procedures and reduce waste.
Additionally, employers can mitigate costs by avoiding per-employee-per-month (PEPM) charges, which can add up quickly and may not accurately reflect actual utilization of services. Instead, companies can adopt a “pay-as-you-go” model, where they only pay for services when employees use them. This approach ensures that the company’s investment in fertility benefits is directly tied to employee needs, making it a more efficient and cost-effective option.
Another important consideration is the potential return on investment (ROI) that employers can achieve by offering comprehensive fertility benefits. Companies that provide these benefits often see reduced turnover rates, lower healthcare costs related to stress and absenteeism, and improved employee satisfaction and engagement. In the long term, these outcomes contribute to a more stable and productive workforce, ultimately benefiting the company’s bottom line.
Quality Care and Flexibility: Key Components of Effective Benefits Programs
To maximize the impact of family-forming benefits, employers must prioritize both the quality of care and the flexibility of the programs they offer. High-quality care is essential for ensuring successful outcomes and for minimizing the emotional and physical toll of fertility treatments on employees. Employers should seek out partnerships with fertility providers who adhere to evidence-based practices and who are committed to delivering the best possible care.
Flexibility is equally important, as it allows employees to access the care they need without significant disruption to their work or personal lives. This can include offering telemedicine options for consultations, providing flexible treatment schedules that accommodate work commitments, and offering customizable benefits packages that cater to the unique needs of different employees. For example, some employees may require IVF support, while others may benefit from fertility preservation services or assistance with adoption.
Employers should also consider integrating family-forming benefits with broader health and wellness programs to provide holistic support, especially around women’s and men’s reproductive health, which have both long been overlooked. This can include offering mental health services, such as counseling and support groups, to help employees cope with the emotional challenges of infertility. By taking a comprehensive approach to employee well-being, companies can create a more supportive and inclusive work environment that benefits everyone.
Future Trends and the Evolving Role of Employers
Looking ahead, we can expect to see an increasing number of employers incorporating fertility benefits into their standard offerings. This shift will be driven by both employee demand and the growing recognition that these benefits are essential for fostering a diverse and inclusive workplace. Employers that fail to adapt may find themselves at a competitive disadvantage, particularly as younger generations enter the workforce with higher expectations for support in their personal and family-building journeys.
In a world where fertility rates are declining and where employees are increasingly seeking support for their family-forming journeys, it is more important than ever for employers to offer comprehensive, cost-effective, and flexible benefits programs. By doing so, employers not only support their employees’ personal lives but also enhance their own ability to attract and retain top talent, boost productivity, and foster a positive workplace culture.
The investment in family-forming benefits is an investment in the future success and sustainability of the organization. As such, employers should take action now to evaluate their current benefits offerings and to make the necessary enhancements that will meet the evolving needs of their workforce. By prioritizing quality care, cost-effectiveness, and flexibility, employers can ensure that they are providing the best possible support for their employees and their families, now and in the years to come.
This article originally appeared in the Employee Benefit Plan Review, Volume 79 Number 1
Notes
- Fauser, B. C. J. M., Adamson, G. D., Boivin, J., Chambers, G. M., de Geyter, C., Dyer, S., Inhorn, M. C., Schmidt, L., Serour, G. I., Tarlatzis, B., & Zegers-Hochschild, F. (2024, January 10). Declining global fertility rates and the implications for family planning and family building: An IFFS consensus document based on a narrative review of the literature. OUP Academic. https://academic.oup.com/humupd/article/30/2/153/7513427.
- The demographic outlook: 2024 to 2054. Congressional Budget Office. (n.d.). cbo.gov/publication/59899.
- Total fertility rate demographics population … (n.d.). un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/demographics/total_fertility_rate.pdf.
- World Health Organization. (n.d.). 1 in 6 people globally affected by infertility: WHO. World Health Organization. who.int/news/item/04-04-2023-1-in-6-people-globally-affected-by-infertility.
- Klotz, Dr. N. (2024, January 25). How fertility benefits can help your company stand out in the race for talent. Employee Benefit News. benefitnews.com/opinion/how-fertility-benefits-can-help-your-company-stand-out-in-the-race-for-talent.
- Peipert, B. J., Montoya, M. N., Bedrick, B. S., Seifer, D. B., & Jain, T. (2022, August 4). Impact of in vitro fertilization state mandates for third-party insurance coverage in the United States: A review and critical assessment – Reproductive Biology and Endocrinology. BioMed Central. biomedcentral.com/articles/10.1186/s12958-022-00984-5.
