3 steps companies can take to support employee’s adoption experience

Eighteen years ago, my wife and I adopted our son. The process takes incredible effort, extreme patience and a good deal of money. Because I am the parent of an adopted child, I know how big of an impact an employer adoption assistance program can have.

It costs relatively little to make an adoption assistance program part of your employee benefits plan and tells employees that you support them through major life moments. A well-designed adoption assistance benefit can have a substantial impact on your company’s reputation for being family friendly, bolstering employee loyalty and giving your company a competitive edge in recruiting and retaining talent.

Benefits packages have traditionally recognized the need to assist employees with the birth of a child. The Peterson-KFF Health System tracker found that it costs an average of $18,865 to give birth in the United States. Fortunately, most employee health care plans cover the bulk of those costs, leaving behind an average of $2,655 to $3,214 in out-of-pocket costs. Unfortunately, few benefits packages provide health care plans or benefits that help with costs for adopting a child.

Advocates, such as the late Wendy’s founder Dave Thomas, have played a major role over the past few decades raising awareness that adoption deserves similar support. A Harris Poll study shows that 64% of employees say employer assistance with adoption expenses factors into their decision to adopt a child.

Here are three ways companies can incorporate adoption assistance into benefits plans.

1. Provide financial assistance

The adoption and infertility organization Creating a Family estimates that a domestic adoption through an agency can cost between $25,000 and $60,000 or more. International adoptions can cost upwards of $50,000 plus travel expenses. This results in the out-of-pocket adoption cost for prospective families to be significantly more expensive compared to those expanding their family in other ways.

More employers, however, are recognizing the benefits of offering direct financial assistance to ease some of the costs associated with legal adoptions. A survey by the Society for Human Resource Management found that of the employers surveyed, 10% offered some form of adoption financial assistance. The Dave Thomas Foundation estimates that financial reimbursement for qualified adoption expenses averages $16,422.

Because an adoption process can take place over months, companies should consider reimbursing qualified expenses in increments to alleviate stress and minimize cash flow issues. The first reimbursement might occur after the adoption application is filed, a second after the home study is completed and a third once the child comes home.

2. Offer employee savings plans

Another way employers can provide support is through an adoption assistance benefit that gives employees a convenient and tax advantageous way to save for the cost of an adoption.

Through payroll, employer-sponsored programs let employees set aside pre-tax money under a cafeteria plan to allow reimbursements for adoption-related expenses such as adoption fees, court costs, attorney fees and travel expenses. The funds are typically held in an investment account. Employees submit expenses for reimbursement, and after expenses are approved, employees may get reimbursed up to the maximum contribution limit per plan year.

3. Expand family leave for adoptions

The Dave Thomas Foundation also found that 68% of employees say paid leave for adoptive parents influenced their decision to adopt. Another survey by the Society for Human Resource found that 34% of employers offer paid leave for adoptions, which averages 9.6 weeks, according to the Best Adoption-Friendly Workplace survey.

Related: Family planning a financial priority: Young workers need more education, report says

Extending existing family leave benefits to adoptions allow employees to spend important time with their new child and shows them that all types of families are valued by the company. It’s important to note that adoptions are covered by the Family Medical Leave Act, which entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period and requires that group health insurance coverage be maintained during the leave. States may also have their own time off requirements.

While expanding a family can be an exciting moment for employees, it can come with challenges that employers can help ease. Deciding to support employees through their adoption journey proves that your company values families and knows how important decisions to expand them can be. Providing adoption benefits is a relatively low cost offering but provides high impact to those who take advantage of it.