Benefits

5 hidden costs of not providing fertility benefits

If you’ve ever heard this question from colleagues or leadership (or perhaps it has even crossed your mind), you’re in the right place. Don’t worry; this is a judgment-free zone.

With 84% of employers saying that advances in HR technology have expanded their role’s responsibility, you may be skeptical of yet another offering to worry about. But as you start planning for 2025, it’s time to explore a topic often under-discussed yet profoundly important for companies and their employees: fertility benefits. 

Are hidden costs from neglecting fertility care impacting your organization more than you realize? Let’s find out.

1. Disengaged teams

In the early 2000s, the California Milk Advisory Board began using a tagline that said “Great Cheese comes from Happy Cows. Happy Cows come from California.”

Just like happy cows make great cheese, happy employees do their best work when companies care about them. When employee needs—like comprehensive fertility benefits—aren’t met, the workforce suffers. 

As a deeply personal and often stressful experience, it’s no surprise that fifty-five percent of employees say that fertility challenges have affected their work performance. Gallup estimates low employee engagement accounts for a whopping $8.9 trillion in lost productivity costs. Offering fertility care can reduce the costs of disengaged employees struggling with the stressors of family building.  

2. Time lost to endless administrative work

HR teams are spread thin. Research shows that an employer’s job responsibilities have increased by 62% in the past few years, juggling an average of eight jobs.

Yet, employees still largely expect a human touch to help them select and learn about benefits, file a claim, and request leave. With the administrative burden still squarely on your shoulders, making smart benefits decisions has never been more important. 

Improving access to trusted benefits partners that handle complex offerings, like fertility benefits, can lighten the load. Employees get the support they need, and HR can free up time to focus on long-term, strategic projects.

3. Decline in overall company health

Fertility challenges can significantly impact the physical, mental, and financial health of employees, especially when left unaddressed. Individuals and couples struggling with fertility issues often experience isolation from friends and colleagues, strain from seeking treatment, or psychological stress.  

Thirty-two percent of employees report they can afford fertility treatments if needed, indicating that the expense of pursuing fertility treatment can lead to financial insecurity. 29% say they may incur debt to seek treatment. 

Additionally, delayed treatment due to lack of access can exacerbate underlying medical conditions that, when left untreated, create more health risks. Ultimately, failing to address fertility challenges can lead to a cycle of declining health and productivity that affects not just individual employees but the entire organization.

4. Overspending on less effective solutions 

Healthcare benefit costs are rising, and even C-suites are taking an interest. A study by Mercer discovered that the average per-employee cost of employer-sponsored health benefits rose from approximately 3% to 5.2% annually in 2023. 

HR teams are caught between a rock and a hard place—providing employees with the best benefits while appeasing top-down mandates to manage costs. 64% of CFOs believe organizations should place a solid or extreme emphasis on clinical management over the next three years to manage company costs. 

Clinically managed care, such as fertility benefits through Carrot, can ensure individuals receive appropriate care at reduced costs. For example, 60% of Carrot members opt to pursue less costly options over IVF, which costs $21,600 on average per cycle. Every party benefits when employees are presented with more appropriate choices for their situations. 

5. Less innovation and competitiveness 

Corporate DEI initiatives have taken a hit at the macro level in the past few years, especially since the Supreme Court ruling on affirmative action. However, there is still a strong business case for diversity. It’s a key driver of innovation and profitability, with companies leading their industry for DEI initiatives 25-36% more likely to outperform profitability than market averages. 

Moreover, there’s a growing demand for inclusive fertility coverage, particularly among the LGBTQ+ community. Although 21 states and Washington, DC, mandate some form of fertility coverage, many do not include options for LGBTQ+ couples. Yet, 63% of LGBTQ+ individuals planning families will explore assisted reproductive technology or alternative paths to parenthood​.

In a competitive market, benefits matter. When asked if they would be willing to change jobs to receive fertility benefits, 65% of employees said yes. Carrot’s Global Fertility at Work survey also found that 95% of respondents reported they would stay longer at their employer because it offers Carrot. 

Reduce costs and add value with fertility benefits

The global benefits team at Salesforce wanted to ensure U.S. and non-U.S. employees had access to fertility benefits, so they launched a pilot program in two countries. While the employees’ reception was positive, the benefits teams quickly got in over their heads dealing with requests in-house. 

After researching options, Salesforce began working with Carrot to simplify providing fertility care benefits. The results? Motoharu Miyazaki, Director, Compensation & Benefits, says, “It’s like night and day.” 

Fertility benefits may seem like a niche, nice-to-have offering, but they touch every aspect of an organization’s health, from financial to operational to cultural. Neglecting to offer fertility benefits could be a costly mistake for companies. 

Contact us to learn how fertility benefits can reduce costs and give your organization a leading edge. 

Continued reading

A global view on fertility treatment and access

How organizations are evolving to meet employee fertility benefits needs

5 tips to help employees understand their fertility benefits

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