How competitive are your compensation and benefit strategies?

As the economy continues to shift, employers have had to make significant adjustments to remain competitive while retaining top talent. While consolidation and cost reduction are key aspects of operational efficiency, other critical but often overlooked components of long-term success include ensuring employee well-being , satisfaction, and engagement. Offering fertility and family-building support as part of a comprehensive benefits strategy can help employers address these factors.  

In an attempt to retain talent, many employers have chosen to prioritize strengthening their compensation packages, ensuring their pay rates match or exceed those of competitors. But as the Society for Human Resource Management (SHRM) reports, it is no longer enough for HR benefits leaders and consultants to focus solely on optimizing employee pay — in today’s competitive talent market, employers must ensure their benefits programs are also relevant, comprehensive, and uniquely valued by candidates and current employees. 

Rather than placing sole focus on short-term cost-reduction initiatives, the current economic climate and labor market demands employers simultaneously invest in long-term benefits strategies that directly contribute to employee satisfaction and retention. Being mindful of employee needs — including those around fertility and family building — can make all the difference in a company’s competitive advantage.

The importance of comprehensive benefits offerings

In recent years, the labor market has influenced what workers value most when seeking new employment or contemplating their futures with their current employers. According to a 2023 survey from recruitment business, PageGroup, employees consider flexibility to be one of the most influential drivers in their job search, second only to compensation. Additionally, 7 out of 10 employees would choose work-life balance over career success, indicating the vital role a generous, comprehensive benefits package can have on workers’ employment decisions. 

One major factor in employees’ desire and demand for more competitive benefits offerings is the expanding need for fertility benefits, specifically. As Carrot’s Fertility at Work global report revealed, more than 60% of survey respondents agreed that employees in their country should have better access to fertility benefits in the workplace. With new data from the World Health Organization (WHO) suggesting infertility impacts 1 in 6 people worldwide, and an increasing number of international laws and regulations making it significantly more difficult to access care, fertility is a global concern that affects individuals personally and professionally.

While fertility issues can have obvious effects on an individual’s relationships and mental health outside the office, they can also have notable repercussions on work productivity and performance as well. As Carrot’s report found, 65% of respondents said they spent time at work researching fertility treatments, benefits, and family building, while 55% shared that fertility challenges had detrimentally impacted their work performance. Perhaps because of this critical need for employee support and resources around fertility, 65% of respondents said they would ask about fertility benefits before accepting a new job offer and 42% even considered it to be a “deal breaker” if a new job did not offer fertility benefits. Additionally, 72% would stay at a company longer if they had access to these benefits.

Because of the urgent and overwhelming demand for fertility benefits, employers must seriously and thoughtfully consider their benefits offerings and consider the needs and preferences of current and future employees when preparing for open enrollment. 

Preparing for open enrollment? Here’s how you can uncover and address current gaps in your benefits strategies.

One of the most impactful ways HR leaders and consultants can uncover gaps in their benefits offerings to ensure competitiveness is to conduct a benefits survey. These surveys can reveal valuable insights into which benefits employees are using, which could use additional resources, and where there are gaps in support.

To effectively create a benefits survey: 

• It can be helpful to use resources such as SHRM and Qualtrics for inspiration in determining questions and phrasing.
• Including segmentation and demographics while considering anonymity is also important, as is setting a reasonable timeline to guide employees in their responses.
• When analyzing survey results, it’s also essential to evaluate year-over-year changes and to pay attention both to overall themes as well as trends by demographic.

In addition to directly communicating with employees about their specific benefits needs, it’s critical for HR leaders and consultants to maintain current knowledge of industry trends and ensure their company’s offerings remain competitive. Employers that prioritize employee well-being and offer inclusive benefits packages — including fertility benefits — are more likely to attract top talent and retain employees in a competitive labor market. 

To that end, research reveals that:

• About one-third (32%) of small employers (with 50-499 employees) and 61% of large employers (with 500 or more employees) cover some type of infertility service
• About three-fourths (74%) of survey respondents provide coverage for some form of treatment beyond an evaluation.

Offering inclusive and diverse benefits is paramount to success, particularly in the realm of fertility benefits. Comprehensive fertility coverage is about much more than a single appointment or evaluation; truly extensive benefits are: 

• Flexible
• Simple to use
• Take a variety of needs into account

Competitive fertility benefits packages not only address fertility needs like egg and sperm preservation and in vitro fertilization (IVF), but hormonal health journeys like menopause, and family-building paths including adoption and surrogacy. Offering a variety of financial and resource-based support options makes prospective and current employees feel seen, heard, and truly understood.

Moving forward with an optimized benefits strategy

In order to maintain a competitive advantage in the current labor market, employers must be willing to move beyond the status quo of traditional compensation and benefits packages and truly optimize their offerings. Not only are competitive packages essential for attracting and retaining top talent, but for ensuring employees feel seen, valued, and supported as they navigate challenging life events, including fertility and hormonal issues.

In preparation for open enrollment, HR leaders and consultants must take the necessary steps to assess and enhance their company’s current offerings and take action where necessary. Conducting a benefits audit, reaching out to employees directly, and researching current trends, can all help move a company forward in improving and innovating its benefits offerings. One of the most important changes a company can make to its current offerings is to consider the addition of comprehensive fertility benefits that meet the needs of a diverse workforce. Not only will this important addition positively impact employee satisfaction, but will position the company as a top-choice employer in an exceedingly competitive market. 

To learn more about how comprehensive fertility benefits can advance your company’s competitive edge, contact Carrot today.