Supporting working parents: how to optimize your employee benefits package

The image of the frazzled parent — baby on the hip, pasta water boiling over, spreadsheet on one screen and Bluey on the other — is a cliche for a reason. Working parents are juggling more than ever, so it’s no wonder they have an average burnout rate of 40%.

And they make up a huge chunk of our talent pool! Among married-couple families with children, a whopping 97.6% had at least one employed parent in 2023, and 67% of families had two working parents. As you build a benefits strategy that supports employee wellness and retention, as well as serving as a recruiting tactic, it’s absolutely essential to consider working parents. Accounting for their unique needs will set them up to do their best work, both in the office and at home.

Let us show you how.

How great employee benefits help parents do better work

Everyone wins when parents feel supported. Here’s why:

• Less stress, more productivity: A Harvard Business School report found that 80% of caregivers say their caregiving duties have affected their performance at work. Caregiving benefits can help you avoid this productivity drop and make your employees feel support along the way.
• Better work-life balance: Nearly 50% of working parents experience burnout, but parental benefits can help prevent this.
• Increased loyalty: Almost three-quarters of working parents are thinking about adjusting their work schedule, switching jobs, or quitting entirely to focus on childcare. By supporting the needs of the whole family, you can help keep your employees happy and healthy, which will in turn affect retention.

How to build your employee benefits strategy with parents in mind

Building a parent-friendly benefits package starts with intention and understanding. Not every family looks the same, and that should be reflected in your benefits strategy. Here are a few things to keep in mind:

All parents need support

Dads, same-sex parents, and adoptive parents tend to get left out of parental benefits packages, but they need support just as much as birthing parents. In fact, according to a Pew survey, 46% of fathers feel like they don’t spend enough time with their children, compared to 23% of mothers. Consider including additional leave policies — like paternity leave and adoption leave — that mirror your maternity leave policy.

Benefits for parents should cover the full scope of parenthood

Parenthood doesn’t end after the newborn phase, and your benefits shouldn’t either. Think about offering benefits that support parents of older kids too, like college savings plans or teen mental health resources.

Employee benefits don’t have to cost you a ton of extra money

Not every parent-friendly perk needs to be expensive. Sometimes, it’s the little things that make a difference, like flexible work hours, remote work, or allowing parents to leave early for school events.

What are the best employee benefits for parents?

They say raising a child takes a village, but raising a child while working can take even more than that. Supporting working parents requires a multifaceted approach, as different benefits are helpful in different situations. Consider these parent-friendly benefits as you craft your employee benefits strategy:

• Generous parental leave: Go beyond the basics of the Family and Medical Leave Act (FMLA). Consider offering paid leave for all new parents, including adoptive parents.
• Dependent care flexible spending accounts (FSAs): These accounts allow parents to set aside pretax dollars for childcare expenses. It’s a win-win situation as parents save money while your company saves on payroll taxes.
• Employer contributions to dependent care FSAs: If you want to take it up a notch, consider matching employees' contributions to their dependent care FSAs.
• Ramp-back programs for new parents: A ramp-back program can ease a new parent's transition back to work with a part-time or flexible schedule. For example, Amazon’s FamilyFlex ramp-back program allows new parents to gradually ease back into their work schedule after taking parental leave, with the flexibility to adjust their hours as needed.
• Adoption assistance: All paths to parenthood are equally important, and your benefits should reflect that. Consider providing financial assistance for adoption-related expenses.
• Fertility benefits: From in vitro fertilization to egg-freezing, fertility benefits can be a true boon for employees struggling with infertility.
• Tech-enabled family support: We’ve partnered with Cleo to provide easily accessible support for the full scope of family care, from pregnancy through the teen years.

What are the best employee perks and accommodations for parents?

Some of the perks that make the biggest impact don’t cost a dime. These are some easy wins that you can implement right away to support working parents:

• Flexible working hours: This is one of the most important benefits all around, as 94% of workers benefit from flexible work arrangements. However, working parents stand to benefit the most from these arrangements, as children have erratic schedules that don’t mesh well with a 9-to-5. Let parents work when it works for them. Maybe that’s in the early mornings before their kids wake up, or maybe it's in the evenings after bedtime.
• Remote work: The ability to work from home, even if only sporadically, can be a lifesaver for parents. For example, being able to work from home when their child is sick allows them to take care of their kids (and avoid costly additional childcare) without neglecting their work responsibilities.
• Dedicated space for parents to connect with one another: Working parents know that the struggle is real, and giving them a chance to connect with others in their situation can help them create their own little support group. For example, here at Nava, we have a Slack channel for parents to ask questions, share advice with one another, or even just gush over pictures of their kids.
• Company-wide no-meting zones: Designate certain hours as meeting-free to allow for school drop-offs or pediatrician appointments. The beauty in this perk is that non-parents will love the dedicated space on their calendars too.

How to implement better benefits for parents

Ready to level up your parental benefits package? It’s not as difficult as you might think. Here are some places to start:

1. Communicate the benefits you already have. You might be surprised by how many employees don’t know about the perks available to them.
2. Survey your employees to better understand what they really want. Don’t assume you know what parents need, and don’t assume that all parents have the same needs. The best way to find out what they want is to ask them directly with a benefits survey.
3. Work with your employee benefits broker to come up with a strategy that fits your budget and your employees’ needs.

Still not sure how to create a benefits package that makes working parents want to stick around? Let’s talk about how Nava can help you design a benefits strategy that supports parents at every stage.

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