November 11, 2022

The Family Benefits Bundle

Employers can play a key role in retaining and supporting the well-being of employees with parenting and caregiving responsibilities, and bringing those who left the workforce back, by offering needed, inclusive benefits that support the diverse experiences of employees and their families.

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Whether family changes are welcomed, distressing or come with mixed emotions, transitions can be difficult to navigate and impact employee well-being and productivity. This section shares ways employers can support employees as they welcome a child into their life, return to work after an extended leave or experience other major transitions, such as moving, military service, marriage or divorce.

Welcoming a Child

Paid parental leave is a top benefit new parents want and need. Evidence suggests paid family leave can decrease infant mortality rates, increase vaccination rates, extend breastfeeding duration, increase return-to-work likelihood, and reduce the risk of postpartum depression. According to Ovia Health’s recent survey, nearly half (45%) of new parents indicated that parental leave benefits were difficult to understand and access, and 76% indicated parental leave preparation would have been helpful. Moreover, parents had access to less paid parental leave than they needed—59% took 2 months or more of unpaid parental leave. 

Table 3.1: Benefits for Welcoming a Child

The Expanding Role of Men in Parenting and Caregiving

Men are taking on more caregiving and household responsibilities than ever before. According to the Pew Research Center, fathers spend, on average, 7 hours a week on child care—almost triple the time they provided in 1965. A 2021 study found Black and White men value and fulfill their parenting and caregiving responsibilities similarly, helping to dispel the harmful myth of the “absent Black father,” an idea perpetuated by structural racism. In fact, Black fathers (88%) are more likely than White fathers to think it’s very important to provide direct care to younger children, such as feeding, dressing or providing childcare.¹

To support all male employees in their parental and caregiving roles, employers not only need to offer family leave to men, but they also need to encourage men to take it while ensuring that the company culture is supportive. Only 36% of male employees use all available parental leave.² However, when dads do take parental leave, good things happen—men who take parental leave are glad they did and would do so again, notice improvement in their relationship with their partner, develop what they describe as a “special” bond with their child, and discover a newfound appreciation for their employer.³

 

Figure 3.1: Fathers Indicate It’s Very Important for Dads to Do These Parenting Duties

Source: New America’s A Portrait of Caring Black Men, 2021

Countries Around the World Beat the U.S. in Paid Parental Leave

Sources: OECD Family Database, Table PF2.1.A, 2018, Leave for Parents, 2021.

Large employers with global locations must navigate significant challenges to establish a program with globally consistent principles. Knowledge of current leave requirements, market practices (including cultural considerations) and existing company leave policies provide the foundation for developing a global framework and establishing key tenets to guide country-by-country variations for implementation.

According to the Business Group 2020 Leave Strategy and Transformation Survey, 19% of large employers with a global presence indicated that they have a global leave policy and another 19% were working on a policy or considering implementing one.  

Thinking of developing a global leave policy? Here are some considerations from leave experts at Aon:

• Do you require market data to develop a business case?
• How will you get other pertinent groups—rewards, well-being, benefits & HR strategy, diversity & inclusion—involved and on board?
• Which approach will you take – country-by-country benefits or a consistent global approach?
• If you are expanding leave, how will you allocate resources to cover those out on leave?
• What types of cost modeling will be required? For example, actuarial analysis and/or factoring in all monetary implications across all time-away categories?

Returning to Work

Returning to work after a parental leave (or other extended leave) is a process that can take a toll on parents physically and emotionally. Many employees feel guilty, overwhelmed, tired and excited. A supportive workplace with flexibilities, such as gradual return-to-work schedules, and managers who encourage employees to be kind to themselves and appropriately reset expectations during this transition can help improve the employee experience.

Source: 2021 Ovia Health The Future of Family Benefits Survey

Table 3.2: Benefits for Return to Work After a Parental Leave

For more information on Parental Leave, visit the Business Group's Parental Leave FAQs.

Best Practices for Managers

• Congratulate the employee on new child, as appropriate.
• Give consideration to flexibilities, such as part-time return-to-work, telework and flexible hours.
• Provide the employee with any company resources, policies or checklists.
• Allow time off and flexible schedules for appointments.
• Identify if any reasonable accommodations are needed.
• Ensure reasonable break time is provided for nursing birth parents in accordance with company policy and ACA requirements.
• Be flexible when reviewing requests and remember that people’s feelings and circumstances can and do change once a child arrives.
• Don’t assume the employee can “pick up where they left off.”
• If in any doubt, consult your HR team.

To learn more about ways to provide work coverage during for a parental leave or other extended leave, review the Business Group’s Strategies for Leave Coverage.

Major Life Changes: Marriage, Divorce, Military Service and More

Major life events that impact the entire family can affect employee well-being and productivity. Employers can step up to provide needed compassion during these moments that matter and support employees, spouses and dependents practically and emotionally through the stressful time.

Table 3.3: Benefits for Life Changes

Life Events Impact Health and Well-being

Fidelity’s research, in collaboration with the Stanford Center on Longevity, found that common life events can have a strong impact on employee health and well-being. Moreover, Fidelity discovered that when employers offer more health, wellness and work-life benefits, employees are better able to manage stress and have better feelings about work.⁴

 

Figure 3.2: Negative and Positive Impact of Life Events on Well-being

Source: Fidelity. Life Magnified: How Important Life Events Impact Total Well-being presented at: Workforce Strategy 2019; September 17, 2019; San Diego, CA.

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