Mercer


1255 23rd Street NW, Suite 250
Washington, DC 20037-1198
202 263 3900 Fax 202 463 8006


Memo

To:

J. Smith at ABC Company

Date:

September 19, 2006

From:

Susan Goldenson, +1 202 263 3991

Subject:

Adoption benefits

In this Memo
Your request | Summary | Resources | Findings | Additional information

Your request

What’s the prevalence of employers offering adoption benefits and the average amount of reimbursement?

Summary

This report includes survey data on the prevalence and basic design of adoption benefits along with links to recent articles that may be of interest. The prevalence of employers offering adoption assistance to their employees ranges from 20% to 43%. The difference in prevalence may be attributed to the varying surveys, their methodology, and how they defined adoption assistance. For example, Mercer reports 43% of employers surveyed offer an adoption benefit, while Hay reports that 20% of employers surveyed cover adoption expenses. Additional detail on average reimbursement amounts is reported by Working Mother magazine in its annual list of the best companies for working mothers.

Resources

Factiva
Mercer, 2006 Spotlight on Benefits Report
Mercer, Policies and Practices Report, 2006
Society for Human Resource Management (SHRM), 2006 Benefits Survey Report
2004 Hay Benefits Report
Working Mother, 100 Best Companies, 2005
Major HR and benefit publications, including HRMagazine, Employee Benefit Plan Review, and Journal of Compensation and Benefits

Findings

Highlighted below are survey findings from Mercer, the Society for Human Resource Management (SHRM), Working Mother magazine, and the Hay Group which report on the prevalence of adoption benefits and paid leave for adoption.

Mercer, 2006 Spotlight on Benefits Report
43% of the more than 1,000 employers surveyed in Mercer’s Spotlight on Benefits Report offer an adoption benefit.

Mercer, Policies and Practices Report, 2006

28% of more than 460 employers surveyed in Mercer’s Policies and Practices Report provide paid time off for adoption. The average number of days provided for adoption leave is 42.

SHRM, 2006 Benefits Survey Report
22% of the 372 employers surveyed by SHRM offer adoption assistance to their employees. In addition, 16% of those surveyed provide paid time off for adoption. Survey data are available by both industry and firm size.

Note: The overall sample size is the total number of responding HR professionals, regardless of industry; however, not all HR professionals answered each benefit question. Therefore, the percentages are based on the actual number of respondents who provided information for a particular benefit. The sample sizes of the industry categories are based on the actual number of respondents who provided an industry; however, the percentages shown are based on the actual number of respondents who provided industry and information about a particular benefit.

2004 Hay Benefits Report
Of the 810 respondents to the 2004 survey, 20% cover adoption expenses; of these, 89% set a dollar limit which typically ranges between $1,001 and $5,000.

Working Mother, 100 Best Companies, 2005
Working Mother magazine’s annual ranking of the top companies for working mothers includes specific information on leave for new parents. Key data such as the number of weeks of paid time off granted to new parents and the average amount of the adoption reimbursement are reported. The following presents data on leave for new parents at the top 10 companies on Working Mother magazine’s list.


Additional information

Adoption's multiple benefits,” Susan Ladika. HRMagazine. Alexandria: Oct 2005
This article provides examples of companies that offer adoption assistance and the advantages it affords. Because few employees actually take advantage of the programs, typically less than 1%, their costs are low; and the benefit is highly valued by employees.

Companies offering adoption benefits, Adoptachild.org

National Adoption Information Clearinghouse, Employer-Provided Adoption Benefits, 2004

On the rise: Adoption benefits mature in the workplace,” Leah Carlson, 1 November 2005, Employee Benefit News

The material attached in this report is for your one-time internal use and is provided pursuant to the IRC ’s copyright agreement.  For more information, contact the IRC at +1 202 263 3999.  Copyright © 2006.