Companies are increasingly turning to family-focused benefits to support their employees during the pandemic. If you’re planning to introduce this offering as well, we’re here to support you. Below, we share findings that will help you—through numbers, data points, and tangible examples—build a powerful business case for family benefits to present to your CFO.
4 ways family-focused benefits lead to financial savings
1. Control healthcare costs
There’s no denying that healthcare costs are a huge line item on a company’s annual budget. That number only continues to grow each year, with employer-sponsored healthcare costs rising 5% to 6% in 2020. Specifically, maternity-related costs represent the highest hospitalization fees paid by employer-sponsored health plans.
Given this, CFOs may be hesitant to allocate even more of the company budget into family benefits related to maternity and fertility care. However, it’s important to look beyond the up-front investment and focus on the long-term impact of not offering these benefits. Many studies have found that early intervention and access to quality care can address significant risk factors associated with higher maternal costs and complications.
For instance, preterm births cost employers more than $12 billion and the U.S. economy $26.2 billion each year. But for every $1 spent on preconception care, $1.60 is saved in maternal and fetal care costs. Similarly, for every dollar spent on prenatal care, employers can expect savings of $3.33 for postnatal care and $4.63 in long-term morbidity costs.
Certain family benefits can also save companies on healthcare costs by offering patient-centered care. At Maven, we have no financial incentive to drive patients to treatments that they don’t want or need—rather, our goal is to help couples conceive in the way that is best for them. That’s why 17% of members who join our fertility track don’t end up needing or receiving treatment.
It’s clear that, while family-focused benefits do require an initial investment, they lead to major healthcare savings down the road—not to mention they’re critical to keeping your employees safe, healthy, and feeling supported enough to return to work after leave.
2. Fill the talent pipeline
Benefits matter more than ever to candidates—especially to Millennials, who currently comprise the largest portion of the U.S. labor force. 64% of Millennials say benefits are very important to employer loyalty and can strongly influence their decision to stay with or leave a company.
But not all benefits have the same level of influence on Millennials. It’s important to think about where these employees are in their lives and what their current priorities are. Many people in this age group, for instance, are likely considering whether or not to start a family. That’s why 68% of millennials consider fertility benefits when choosing an employer. Knowing this, offering family-focused benefits might be especially compelling and draw highly qualified candidates into your talent pipeline.
How does this save your organization money? A report by LinkedIn found that only 30% of companies can fill a vacant role within 30 days. The other 70% of organizations take anywhere from one to four months to process a new hire. This is a huge source of waste in time and resources and one that can be mitigated by having a healthier, more robust talent pipeline.
3. Increase employee retention rates
As an HR leader, you’re well aware of the cost of employee turnover, which can range from tens of thousands of dollars to up to two times an employee’s annual salary. One of the most significant factors that contribute to voluntary turnover? Starting a family—a trend that disproportionately affects the women in your workforce.
43% of women leave the workforce within one year of having a child. However, the onset of COVID-19 has caused the number of women dropping out of the workforce to skyrocket. As a result, the percentage of American women working is the lowest it's been since 1988. This is an alarming but unsurprising fact, given that women are carrying most of the burden of work and home life—without the support of their normal daycares, schools, and support systems.
Offering family benefits can bridge this gap and save employers the cost of losing some of their best employees. Studies have found that family-focused benefits, such as fertility care or paid parental leave, critically boost retention rates for women. We’ve also seen in our own data that 90% of Maven members end up returning to work after pregnancy, compared to the 56% of women who do on average nationally.
4. Boost productivity
To produce their best work, employees have to be mentally and physically healthy. Unfortunately, burnout rates are at an all-time high right now. The psychological and physical problems of burned-out employees can cost companies an estimated $125 billion to $190 billion a year in additional healthcare spending.
Investing in the wellbeing of your employees and their families can address these issues and significantly reduce these costs. A survey we conducted with Great Place To Work found that companies that prioritize their workers see 5.5 times more revenue growth thanks to greater innovation, higher talent retention, and increased productivity.
We’ve seen with our own product that 58% of Maven members are more productive at work when they have access to services that fill gaps in care for women and families, such as telehealth options.
Family benefits are so much more than just a “perk” for your working parents. They’re an impactful investment in both your employees and the organization. Keep these proof points in mind when making the business case to your CFO, and request a demo if you’d like to learn how Maven can support the needs of your company.
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