HighlightsÂ
- A new report from Maven Clinic suggests a growing demand for employers to provide family benefits as part of their employee benefits packages.
- Among the top findings are that employees want caregiver benefits, coverage for reproductive health, and fertility and family planning support.
- Employers who want to attract and retain top talent should consider incorporating family benefits to support employees with their mental health and work-life balance.
- A self-funded group captive insurance plan can help small and midsize businesses provide high-level family benefits for their employees.
According to a recent reproductive health survey by Maven, the demand for family benefits is on the rise. This increase in demand is due to a growing focus on work-life balance for employee retention and satisfaction, shifting family dynamics, and the impact of COVID-19 on the workplace.
The Maven survey showcases this rising demand for family health benefits, providing insight into how employers can respond to this trend by offering family health insurance benefits to meet the growing demand. Self-funded insurance on a group medical captive is one way even small to midsize companies can do so affordably.
Key Findings From the Maven Survey
The Maven Clinic’s State of Fertility & Family Benefits report draws on insights from 600 HR benefit decision-makers and over 1,100 full-time employees. The document provides valuable information on the current landscape of family health benefits for employers.
According to the survey, 87% of employers recognize that family benefits are crucial to prospective and current employees. Nearly two-thirds, 63%, of employers plan to increase fertility and family benefits within the next two to three years.
The report also highlights companies’ risk of losing employees due to inadequate family benefits. Over one-third, 36%, of employees reported that they have left or considered leaving a job for lack of family benefits.
Why Is Employee Demand for Family Benefits Increasing?
The Maven survey indicates that 91% of companies with a global workforce consider family benefits essential to attracting and retaining employees. This increased demand is due to multiple factors, including shifting societal values, a changing workforce demographic, and fierce competition for talent.
Changing Societal Values
Many employers plan to invest in reproductive health benefits in the current shift in societal values regarding reproductive rights. According to Maven, 71% of companies are adding reproductive health benefits in the wake of the overturn of Roe v. Wade.
Evolving Workforce Demographics
An evolving workforce demographic is influencing the demand for family benefits. According to the Pew Research Center, millennials make up the biggest percentage of the American workforce. Between ages 27 and 41, this group is dealing with an increased need for family benefits that allow them to care for young children and aging parents.
The COVID-19 Pandemic
The COVID-19 pandemic has brought a renewed focus on the need for family benefits, as many employees struggle to balance their work and caregiving responsibilities. The pandemic has highlighted the importance of benefits such as paid leave, mental health support, and flexible work arrangements to support working families.
Competition for Talent
A 2022 McKinsey report found that just under 30% of employees left the workforce due to a lack of support for their health and well-being and inadequate compensation packages. Companies recognize the need to offer competitive benefits, with family benefits a key differentiator for attracting qualified hires.
Workplace Policy Changes
Changes to family leave laws have also contributed to the demand for family benefits. The Families First Coronavirus Response Act (FFCRA) provided paid leave for certain employees affected by COVID-19 in 2020. States like California have passed new paid family and medical leave laws to provide eligible employees with paid time off for various family and medical reasons, including the birth or adoption of a child, bereavement leave, or caring for a family member with a serious health condition.
Which Family Benefits Are Employees Asking For?
Employee retention is a top priority for businesses, but poor family benefits may drive away talent. 41% of employees want better reproductive health benefits, with nearly 1 in 10 contemplating switching jobs.
The benefits employees are asking for include:
Paid Parental and Caregiver Leave
Employees are increasingly seeking paid parental and caregiver leave to balance work and family responsibilities. In 2021, only 23% of U.S. civilian and private industry workers had access to paid family leave, according to the Bureau of Labor Statistics.
Caregiver Support
Many employees are asking for caregiver support benefits to care for family members in need. A 2021 Society for Human Resource Management (SHRM) article states that approximately 1 in 6 employees spend up to 20 hours per week caring for a friend or relative.
Preconception Support
A 2022 Harris Poll survey found that 45% of employees consider fertility benefits a critical factor when considering whether to take a new job. Providing such support can improve employee satisfaction and retention.
Fertility and Family Building
With 1 in 8 married couples experiencing infertility and LGBTQ and single employees facing significant barriers to conceiving and growing their families, employees are now seeking workplaces that offer fertility and family-building benefits to help them plan families.
Reproductive Health Support
Employees are increasingly asking for reproductive health support, with 89% of people stating that it is important to them that the company they work for provides reproductive benefits, according to a 2023 Indeed.com survey.
How Are Employers Meeting the Family Benefits Demand?
According to the Maven survey, employers are realizing the importance of family-friendly benefits, with nearly two-thirds planning to expand offerings in the next three years. Self-funded insurance is one way employers can do so affordably.
Areas of focus include:
Parenting and Pediatric Support
Parental and pediatric support family health benefits typically cover the health needs of children, including prenatal care, pediatrician visits, and child vaccinations. They may also provide mental health services for parents and children.
Maternity and Postpartum Care
Maternity and postpartum benefits are designed to support women’s health needs during pregnancy, childbirth, and the postpartum period. These benefits may include coverage for prenatal care, childbirth, hospital stays, postpartum check-ups, lactation support, and resources for managing postpartum depression and anxiety.
Global Parity for Family Health Benefits
According to a 2020 study by the Kaiser Family Foundation, only 56% of U.S. employers offer their employees health insurance benefits. The benefits offered vary widely in terms of coverage and cost-sharing requirements. This creates disparities in access to healthcare benefits among different groups of employees and contributes to overall inequality in healthcare outcomes.
Global parity for family health benefits is the idea that all employees should have access to comprehensive health insurance coverage that supports their families’ health and well-being. This includes maternity and postpartum care coverage, pediatric support, and other family-related medical expenses.
Reproductive Health Care
Reproductive health care benefits refer to health insurance coverage for family planning, fertility, and reproductive health services. These benefits can include contraception, infertility treatments, and maternity and postpartum care and are important for promoting reproductive health and wellness among employees.
Fertility and Family-Building Support
Fertility and family building support healthcare benefits include health insurance coverage for assisted reproductive technology (ART) services, such as in vitro fertilization (IVF), surrogacy, and adoption.
According to a 2021 report by FertilityIQ, the number of companies that introduced fertility and family-building benefits grew by 8%, with 1 in 5 companies also offering coverage for adoption.
How Roundstone Can Help Employers Meet the Challenge Through Self-Funded Insurance
Roundstone offers unique solutions for self-insured employers to design and implement custom employee health insurance plans that meet the specific needs of their employees. With their self-funded group captive insurance options, employers can gain more control over their healthcare spending and offer comprehensive benefits that employees are demanding.
Self-insuring with a group captive means that employers share costs with hundreds of other employer groups. Cost-sharing allows even small to midsize companies to take advantage of the control, savings, and care quality of a self-funded health insurance plan. Εmployers also have the flexibility to design a customized benefits plan that fits the unique needs of their workforce.
As part of their unique approach to self-funded insurance, Roundstone provides expert guidance and support throughout the process, including claims administration and cost containment strategies. By partnering with Roundstone for affordable employee health insurance, self-insured employers can improve employee satisfaction and retention while reducing healthcare costs.
Provide Affordable Well-Rounded Family Benefits for Your Employees with Self-Funded Insurance
Contact a Roundstone advisor today to learn more about self-funded employer-sponsored health insurance and how a group captive plan can help you offer better family health benefits to your employees.
