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More Employers Offering Fertility, Adoption Benefits

October 15, 2024by Barbara Flynn0

By Kathryn Mayer

 

The number of employers offering fertility and adoption benefits has jumped over the past couple of years and continues to rise, new data finds, as more employers look to offer inclusive—and costly—family-building support for a competitive edge. More than 4 in 10 U.S. employers (42%) now offer fertility benefits—up from 40% in 2022 and 30% in 2020, according to a recent report from the International Foundation of Employee Benefit Plans (IFEBP). Overall, these employers now offer every type of fertility benefit IFEBP collected data on—including fertility medications, in vitro fertilization (IVF), and genetic testing.

 

The availability of egg harvesting/freezing services as a fertility benefit has jumped considerably over the past eight years, with 16% of employers now offering the benefit, up from just 2% in 2016. Meanwhile, 37% of employers offer paid adoption leave in 2024, up from 34% in 2022 and 27% in 2020, IFEBP found. One-fifth (20%) offered financial assistance for adoption in 2024. There are a few reasons behind the rise in coverage, according to Julie Stich, vice president of content at IFEBP. For one thing, these benefits are “a positive way for employers to create a more inclusive workplace,” as coverage can also help the formation of nontraditional families, such as those with same-sex or single parents. Another reason that employees highly value those benefits is because fertility and adoption services are extremely costly. Data indicates that a round of IVF, for instance, can cost between $15,000 and $30,000, while private domestic adoption may cost between $35,000 and $50,000. Providing financial assistance can therefore be a competitive advantage for organizations.

 

Such benefits “are a valuable way for employers to build community and show their care and support for employees and their families, while offering a strong attraction and retention benefit,” Stich noted.

The IFEBP figures are in line with other data finding momentum for fertility and other family-building benefits in U.S. workplaces. Consulting firm Mercer found that about 45% of large employers covered IVF in 2023, up from 22% four years earlier. Others expect those numbers to increase even more, with a recent Business Group on Health and Fidelity Investments survey finding that 86% of employer respondents planned to offer family-forming and reproductive support in 2025.

 

Employer Impact

 

Industry experts point out that these benefits are not only important to—and highly valued by—employees, but have advantages for employers as well. A 2023 survey of 1,233 HR leaders and 3,077 employees in the U.S. and the U.K. from virtual benefits provider Maven Clinic, for instance, found that about 70% of employers believe that reproductive and family health benefits are important to help attract prospective hires, while 75% believe that they are crucial for retention.

 

“In today’s ever-changing landscape of HR demands, family benefits are a North Star for wise employers seeking return on investment,” said Kate Ryder, founder and CEO of Maven Clinic.

 

Employers who offer both fertility and adoption benefits might see improved employee productivity.

“If an employee is struggling with infertility, adoption delays, or related expenses, their work may suffer in the form of productivity loss, absenteeism, or presenteeism,” Stich said. “Offering family-planning benefits can alleviate those stresses while supporting mental and financial well-being.”

Employers such as AT&T and Liberty Mutual have added and expanded family-building and fertility benefits over the past few years.

 

“The way people built families 20 years ago, it’s very different today,” Liberty’s head of benefits, Verlinda DiMarino, told SHRM earlier this year. “In recognition of that, we have expanded on our family-forming benefits.

 

“We have adoption and surrogacy. We allow individuals to utilize fertility benefits without the diagnosis of infertility,” she explained. “All of that really speaks to our core, who we are as an organization, and how we want to support our employees, not just from a professional perspective—which we do by giving them great opportunities to help them grow and develop their career—but also the other parts of their lives.”

Barbara Flynn

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