How are organizations supporting working parents?

The past two years have been a time of transition for many employees, with companies more regularly asking employees to return to the office. Whether fully in office or on a hybrid schedule, this has had a significant impact on working parents. When remote work grew in popularity in the early 2020s as a result of the pandemic, parents got used to being able to handle school drop-off and pick up, shuffling kids to activities, and generally being more available at home. As employers request more in-office time, this has increased the burden on working parents, most notably working mothers. To mitigate some of the burdens working parents are facing, employers can consider:

• Offering a Dependent Care FSA. A common offering is the Dependent Care FSA, where employees can pay for a portion of childcare using pre-tax dollars. The money an employee sets aside (up to a specific amount as designated by the IRS) is taken out of an employee’s paycheck pre-tax. The employee pays for eligible dependent care expenses out of pocket and is then reimbursed for those costs by the plan’s administrator.
• Childcare stipends. Employers can consider offering stipends to offset childcare costs. This can take many forms, including a monthly childcare reimbursement for a nanny or daycare center or covering a membership to childcare site (such as com or UrbanSitter).
• Offer emergency childcare options. Backup childcare is a unique offering gaining popularity. In this case, the employer covers or subsidizes the costs of emergency care (i.e. when a child is sick, or childcare arrangements fall through), typically up to a specific number of days per year.

 

Designing a Policy That Works for You

The first step in developing the best PTO plan for your business is deciding how you’ll structure your time-off policy. Here are three common options, each with its own pros and cons:

1. Accrual Method:
   Employees earn PTO gradually, often based on a pay-cycle or monthly basis. While a common practice, this can be an administrative burden, especially if there are not systems in place to track it.
2. Annual Allotment:
   In this case, all employees start the calendar (or fiscal) year with a set number of days. The time is offered up front, rather than accrued, allowing for predictability and easy tracking. Set best practices and train your leaders on how to best manage this policy, specifically to ensure that PTO is being used throughout the year, and not all at one time (like year-end – yikes!).
3. Unlimited PTO:
   Unlimited PTO has gained popularity in recent years, especially in the start-up and tech spheres. An unlimited PTO policy can be a huge asset for a company and its employees – but only when it’s done right. Make sure you discuss standard protocols with your leadership, such as ensuring there is a minimum amount of time taken off each year, to ensure this policy doesn’t unintentionally lead to burnout for both employees and leadership.

No matter which option you choose, be transparent. Make sure your policy is understood by everyone, and that leaders are enacting the policy equitably. Employees should know exactly what to expect, and so should their managers.

What benefits can organizations offer for pet owners?

These days, not all parents have human children – some prefer the animal kind! According to Newsweek, only 38 percent of Gen Z-ers said they would prioritize starting a family over raising a pet. Employers seeking to include pet support in their benefits offerings have several options to choose from:

• Offering pet insurance. Pet insurance has been a popular benefit offering, and for many organizations, this has been the extent of the support. While valuable, pet insurance does come with a variety of stipulations (such as increased costs for older pets and exclusions for pre-existing conditions) that can leave owners wondering if the cost is worth it.
• Pet Welfare Perks. Organizations can also consider offering subsidies for the adoption fees of a pet, pet food, or veterinary care.
• Mobile Pet Services. Given the back-to-office push, employers can explore onsite offerings to bring pet appointments to employees. This might include mobile veterinary services or even grooming services.

How can I expand my leave options to better support employees?

Paid leave programs have expanded greatly in the past several years, due in large part to more than a dozen states passing paid family leave laws.  While employers must be aware of these laws, especially those who operate across multiple states, these laws can also be supplemented with other unique leave options, such as those listed below.

• Bereavement leave for pregnancy loss. While some states do include pregnancy loss in leave laws, the benefit is gaining attention from employers as well. The Society for Human Resources Management (SHRM) reports that nearly one-quarter of bereavement-leave policies allow an employee to take time off for a miscarriage or failed in vitro fertilization (24 percent). This policy typically applies to both the birth mother and her partner, demonstrating support for the parents involved. In addition to supporting the employee, unique benefits like miscarriage leave appeal to job applicants and can enhance an employer’s brand within a hot job market.
• Eldercare paid leave. Employers may find themselves with a workforce of “dual caregivers”, in other words, parents of school-aged children who are also caregivers for their own parents. This can be a remarkably challenging time of life, while also balancing demands of work. Employers can offer support by offering paid leave for employees to care for their ill and aging parents, providing relief financially and emotionally.
• PAW-ternity Leave. In line with the pet perks we mentioned, some employers offer similar paid leave at the time a pet is being adopted, or should an employee experience the loss of a pet.

 

What unique financial benefits can my company consider?

The 401k and 401k match are popular benefits, but for small businesses, a 401k match might be unaffordable or unrealistic given the business size.  Thankfully, there are other financial benefits small businesses can offer that make a meaningful impact for employees.

• Student loan repayment. If your business is one that hires recent grads, an enticing way to attract – and retain! – this demographic is by providing support for student loans. As SHRM reports, this has become an increasingly popular benefit. “The number of employers offering student loan benefits more than tripled in the past five years, from 4% in 2019 to 14% in 2024, according to new data from the International Foundation of Employee Benefit Plans (IFEBP), a nonprofit organization with 31,000 employer members.”
• Tuition reimbursement. Understanding that repaying student loans may be too costly for many businesses, offering tuition reimbursement can be an alternative approach. For employees seeking to attend graduate school, or perhaps take courses toward a certification, offering financial support for these educational pursuits demonstrates a commitment to the employee, while also enhancing their skills.
• Home office stipends. If your employees are hybrid or fully remote, consider offering stipends to furnish a home office. These stipends can be used to purchase equipment that will make an employee more comfortable and more productive

 

Building an inclusive benefits plan requires a little creativity, and a lot of listening. Instead of assuming the status quo works, engage your employees directly to learn what matters most to them. Surveying and acting on their feedback not only shapes a benefits program that truly supports your workforce but also fosters a culture of inclusion and trust across your organization.

Flex HR has a team of benefits experts ready to help build your best benefits plans yet. Reach out today to learn more!