What it means to have LGBTQ-friendly benefits

When Joey Gonzalez and his husband wanted to start a family ten years ago, they didn't have access to the kind of benefits they needed to make it possible — making what should have been an otherwise joyous process long and arduous.

Today, after navigating the surrogacy process for both his children, the co-CEO of New York-based gym chain Barry's Bootcamp is determined to keep his own workforce from going through the same challenges. 

"I experienced firsthand how overwhelming and expensive the journey can be," he says. "It made it clear to me just how important offering benefits like this are for our employees today — not just in terms of financial support, but also in helping them feel seen, valued and supported in every step of their path to parenthood." 

Read more: With DEI under threat, where do LGBTQ benefits fit?

Gonzalez and his husband are part of the approximate 2.6 million LGBTQ adults raising children under the age of 18 in the U.S., according to a study from public policy research organization the Williams Institute. Many of those success stories are due to the fact that 42% of U.S. employers now offer fertility benefits, according to data from SHRM and workplace insights platform HR Dive, which increased from 30% in 2020. 

Still, however, there are significant blindspots benefit leaders need to consider. For example, many family building benefits are still limited to traditional healthcare plans, which don't universally include fertility treatments, according to Dr. Asima Ahmad, co-founder and chief medical officer at Carrot. If they are, they're usually tied to a diagnosis of infertility — which disproportionately affects same-sex couples. 

"Under most health insurance policies, heterosexual, cisgender couples are typically required to prove infertility by demonstrating they've been [actively trying to conceive] for at least a year without achieving pregnancy in order to qualify for coverage," Dr. Ahmad says. "This narrow definition of infertility excludes most LGBTQ couples."

LGBTQ employees are still struggling

Unlike their straight counterparts, whose needs are often met by even the most standard benefit offering, queer employees in many cases have to pay out of pocket for surrogacy services, adoption fees and IVF treatments, which can cost them thousands of dollars. One IVF cycle averages $21,600, according to Carrot. Patients typically require two to three cycles, bringing the total closer to $50,000. Gestational surrogacy, another common solution, starts at around $136,000 and can reach upwards of $200,000.

Read more: How benefit managers can keep a focus on DEI

"One of the most important contributions employers can make in the fight for LGBTQ equality is to offer comprehensive, inclusive fertility benefits for all," Dr. Ahmad says. "When employers offer benefits that include people of all genders, sexual orientations, gender identities and marital statuses, they demonstrate their commitment to their employees."

It's that same commitment that led Gonzalez to partner with Carrot Fertility for Barry's Bootcamp's family planning needs in January of 2020. The goal, according to Gonzalez, was to provide support that went beyond the traditional offerings. Through Carrot, employees have access to adoption and foster care benefits; IVF and intrauterine insemination; egg and sperm donation as well as egg and sperm freezing; and surrogacy. All without needing an infertility diagnosis, regardless of their sexual orientation. 

Carrot will also match employees to the care providers of their choosing, meaning that if an employee would rather work for professionals specializing in LGBTQ care, Carrot will facilitate that process. 

"Providing inclusive family-building benefits is not only the right thing to do — it's also a powerful business decision," Dr. Ahmad says. "It enhances employee trust and engagement. It increases retention among top talent who may otherwise feel overlooked by traditional benefits." 

Attracting and retaining LGBTQ talent

According to Carrot research, 70% of respondents would consider changing jobs to work for a company that offers LGBTQ inclusive fertility and family-building benefits and 74% said the rise in support for LGBTQ fertility and family-building benefits at work has made them more hopeful. This has certainly been the case for Gonzalez and his business. 

"There is deep gratitude and appreciation from our employees for the support they've received in building something as meaningful as a family," he says. "Many have shared that starting or growing their family simply wouldn't have been possible without Carrot's benefits. These stories are incredibly moving and serve as powerful reminders of the real impact this kind of support has." 

Both Gonzalez and Dr. Ahmad urge organizations to take the necessary steps to understand what kinds of needs their workforce has and where current benefits are falling short. Benefit leaders can achieve that by communicating with LGBTQ resource groups and facilitating open and honest conversations in the workplace where employees feel encouraged to share. 

"We have to move beyond a one-size-fits-all approach to benefits," Gonzalez says. "In order to truly create safe and diverse workplaces, you have to understand how the needs of that workforce may differ and provide the right resources to meet those needs."