The U.S. workforce is changing, with Gen Z and millennials on track to make up much of the workforce by 2030. As these generations fill more positions, they are changing not only the way we work but also the benefits employers are expected to offer.
Gen Z and millennial employees prioritize mental health benefits, flexible work policies and diversity initiatives in the workplace, and many employers have already adjusted their benefits to accommodate these priorities. But other benefits are just as important and can help your company keep the most talented people — or lead talented new employees to you.
Read more: Mental health, ADHD, fertility: Don't let your employees struggle in silence
Should employers cover family-planning services?
Recent studies show that more than half of employees expect their employer to cover family-planning services. In fact, 88% would consider leaving their jobs to access fertility benefits. Employers are noticing, and the International Foundation of Employee Benefit Plans (IFEBP) has seen steady growth in coverage for fertility benefits.
If you're considering adding coverage for fertility benefits, you might be surprised that companies can offer these benefits with little additional cost to medical plans. Including fertility and family-forming benefits may even reduce healthcare costs. A study by the American Society for Reproductive Medicine compared states with insurance coverage mandates for in-vitro fertilization (IVF) to states without such mandates. The researchers found that people who lack access to fertility coverage or have limited coverage may try to save out-of-pocket costs by avoiding certain screenings or transferring multiple embryos to maximize their chances of successful implantation. But these cost-cutting measures increase the risk of multiple births, high-risk pregnancies or miscarriage. Covering fertility benefits can lead to safer pregnancies, fewer multiple births, healthier babies and less time spent in the NICU because parents are making decisions based on medical best practices instead of out-of-pocket costs.
Read more: Employees are picking up second jobs to gain fertility benefits
Benefits beyond traditional fertility treatments
Today, fertility treatments extend beyond IVF or intrauterine insemination. Comprehensive family-planning benefits now include a range of services like hormone treatments to regulate PCOS or infertility. They also include egg retrieval and freezing, gestational carrier services, adoption services and parental leave.
Offering an inclusive health plan that incorporates family-planning benefits is especially important because the use of these services is increasing among LGBTQIA+ families and single parents. Many LBGTQIA+ couples want to expand their families by either becoming first-time parents or having more children. A survey from Family Equality found that 63% of LGBTQIA+ millennials plan to use assisted reproductive technology, foster care or adoption services. Twice as many Gen Z adults as millennials identify as LGBTQIA+, and the demand for family-expanding services will likely increase as Gen Z continues to enter the workforce.
While many Gen Z employees aren't actively using fertility benefits now, they expect employers to provide benefits that emphasize equality and social responsibility. To younger workers, fertility benefits are more than health benefits — they're an essential part of a company's DEI strategy.
Read more: How to make fertility loss a part of bereavement leave
Positive impacts for employers
Creating inclusive benefits policies boosts workforce satisfaction in today's competitive job market. In fact, employees report more job satisfaction and workplace loyalty when offered expanded health benefits. A Fertility IQ survey of employers and employees found that companies providing family-building benefits saw an average of 8% annual growth, and employees were more grateful to their employers than those who did not have access to fertility benefits. Plus, employees with fertility benefits stayed at their jobs longer and felt more loyal and committed to their workplace.
Today's diverse workforce presents an opportunity for businesses to adapt to their employees' changing needs and create more inclusive environments. There is no one-size-fits-all approach to deploying employee benefits, but given the importance new generations place on these benefits, employers should consider adding them to retain top talent, support employees and prioritize DEI efforts.
