Why your company’s health coverage isn’t as equitable as you think

As we seemingly head into another recession, HR leaders are hard-pressed to hold onto their current talent — after all, SHRM estimates it costs up to 200% of a departing employee’s salary to replace them. What’s changed since COVID and “The Great Resignation” is that HR leaders are clearly focusing their efforts on attracting and retaining employees by evolving their diversity, equity and inclusion (DEI) strategies. In fact, McKinsey data shows that higher-performing organizations (in terms of revenue, market share and retention) lead in this area.

However, while companies have made strides with their DEI efforts in recent years, many of these strategies fail to consider a key element of workplace inclusivity: equitable family-building benefits.

The impact of inclusive benefits

Employees list better benefits as one of the top five reasons they leave their jobs, and 72% of employers say “competitive pressure to attract and retain talent” is a crucial reason for improving their fertility and family planning benefits package. The number of companies offering inclusive family-building benefits is only expected to increase in the coming years. Millennials are leading the charge for more inclusive benefits. This group is starting families later in life, and benefits packages failing to address the shifting needs of their employees will also fail to keep this talent.

Inclusive family-building benefits support people pursuing pregnancy and family-building at any stage. This support includes everything from IVF coverage (regardless of an infertility diagnosis) to surrogacy and adoption. Furthermore, these benefits go beyond fertility by providing support during pregnancy, birth, postpartum recovery and newborn care. Only 65% of birthing women return to work after having a baby, with another 20% quitting within the first year. However, women with covered fertility benefits return to work at just under 90% compared to those who pay out of pocket.

In 2023, the typical health plan only offers fertility coverage for employees with an infertility diagnosis. But this qualification is outdated — where does that leave the 30-something single woman who wants to freeze her eggs or same-sex couples who want to start a family now?

And reproductive benefits should not stop with family-building. What about the other end of the spectrum? Inclusive benefits must also recognize and support older female employees. Three of four women experience detrimental symptoms during menopause, which begins around age 52 — and 17% of working menopausal women will quit their jobs because of these symptoms. Our health care system already feels underprepared to discuss menopause with patients, which fuels the lack of support many working women experience during such a pivotal life phase. Menopausal support — like hormonal treatments, additional sick days and access to the right health care providers — can alleviate anxiety and promote a happier and healthier employee demographic.

If women leave their professions because they are having a baby or experiencing menopause, their company suffers, too. So if your benefits package isn’t supporting women at those critical moments — at the times in their professional lives when they are becoming managers or entering the C-suite — do you really have a strong DEI strategy?

Evaluate your current plan

Adopting inclusive benefits is simply not enough for your organization to hit the mark — you must tie these offerings back to your overarching DEI strategy. More likely than not, you have a mission statement or code of conduct that delineates your organization’s approach to DEI. Beyond reviewing these documents, consider the following steps to evaluate gaps in your current offerings:

• Review your plan documents — Look closely at your employee handbook, insurance plan documents and any other relevant materials to confirm which benefits your organization currently offers. Review each benefit’s specific terms and conditions, such as eligibility requirements, copays and deductibles, to ensure your offerings aren’t exclusionary.
• Start a conversation with employees — Many areas covered by family-building benefits, such as menopause and infertility, are stigmatized in the workplace. Accordingly, consider surveying your employees anonymously for feedback on these areas of interest. Include specific questions about popular offerings like IVF, surrogacy, adoption and child care, as well as broad questions about DEI targets (e.g., “Do you feel our organization’s current health plan/employee offerings meet your needs?”)
• Compare your plan to industry benchmarks — How do your current offerings compare to competitors’ benefits? If you’re behind the curve, it can impact your ability to attract top talent. And if you’re a frontrunner, maximize the opportunity to get ahead of your competitors early.
• Consult with a benefits expert — For many, family-building benefits offer a welcome, new avenue for inclusivity. It’s natural to wonder where to begin — but don’t allow yourself to fall behind due to indecision. It’s wise to consult with a benefits expert to decide which offerings suit your workforce.

Once you’ve taken these steps, devise a plan to improve your benefits with an eye toward inclusivity. Ask yourself: How can I roll out family-building benefits in a cost-effective but efficient manner? Consulting with an expert is vital here.

Additionally, consider the needs of your future employees — a more diverse range of offerings will attract top talent to your organization. For example, comprehensive LGBTQ+ benefits packages that include hormone replacement therapy (HRT) and IVF plans can help to attract top performers to your organization.

It’s also important to consider how you will communicate plan changes. When announcing a family-building benefits package to employees, explain why you’re including it and how it will contribute to a better organization. Sharing your values will help your talent connect your parlance and actions, promoting the workplace culture you aim to achieve.

Read more: Why family-building benefits are necessary for modern employer coverage

Offering a more inclusive family-building benefits package supports your overarching DEI strategy, promotes retention and ultimately empowers a happier, healthier employee workforce. Inclusivity and diversity initiatives like family-building benefits are truly the secret to retaining top talent and elevating your organization to one where employees want to stay.

Liz Pittinger, Head of Global Customer Success at Stork Club.