From New Dads to Seasoned Fathers: Benefits That Support Every Stage of Fatherhood

Quick look: There are many stages of fatherhood, and the employee benefits that resonate the most change substantially over time. This wide range of needs is an opportunity for brokers to help small and midsized business (SMB) clients build a benefits strategy that meets fathers’ needs at every milestone, from welcoming a newborn to writing college tuition checks. Here’s a closer look at which benefits may matter the most during each phase, how they help clients compete in a crowded market, and why a professional employer organization (PEO) partnership makes delivering them far more manageable.

Father’s Day is one day on the calendar, but being a dad is a year-round job that evolves significantly over time.

The financial pressures and caregiving responsibilities a new dad faces differ greatly from those of a father sending a kid to college. That evolution matters for employers: a benefits package designed to support every stage of fatherhood is a strategic tool for recruitment, retention, and workforce well-being.

Here’s how benefits priorities may shift across each phase of fatherhood, and how a PEO partnership helps brokers bring these solutions to clients more efficiently and at scale.

Stage 1: Family formation

For employees who are family planning, benefits that support that journey show that their employer sees them as a whole person. Family-forming benefits, including support for fertility, adoption, and surrogacy, are increasingly expected in competitive talent markets.

Health plan details matter, too, and robust coverage that includes prenatal and family-forming services and care for dependents can reduce out-of-pocket costs.

Stage 2: New fatherhood

Research from Best Place for Working Parents found that the majority of businesses reported that parental leave policies that include fathers positively impacted productivity (89%), performance (91%), turnover (96%), and employee morale (99%).

Despite those figures, paternity leave remains largely underutilized, especially among small businesses. According to the National Library of Medicine, 70% of men who take leave take 10 days or less, often due to cultural norms, financial pressure, and limited leave policies that don’t make more time feel viable. For clients, closing that gap can be a powerful differentiator in attracting and retaining talent.

Employee assistance programs (EAPs) are another helpful resource for new dads during this transition, offering confidential support for challenges such as:

• Emotional well-being including stress, anxiety, or depression
• Family, marital, and other relationship issues
• Life improvement and goal setting
• Financial and legal concerns
• Online will preparation
• And more

Stage 3: Active parenting years

As children grow, their parents’ financial demands intensify.

Childcare costs have increased 8% since June 2024, outpacing inflation and making tax-advantaged benefits more valuable than ever. For instance, dependent care flexible spending accounts (DCFSAs) allow employees to set aside pre-tax dollars to cover childcare expenses.

The Society for Human Resource Management (SHRM) 2025 Employee Benefits Survey found that 54% of employers currently offer these accounts, down from 65% in 2021. DCFSAs are cost-neutral for SMBs to offer, and now provide even more value to employees, as starting on January 1, 2026, the contribution limit jumped from $5,000 to $7,500 per household.

Health coverage continues to be crucial during the active parenting years, as well. An affordable plan with strong pediatric, vision, and dental coverage reduces financial stress and keeps employees focused at work.

EAPs can also resonate, especially with expanded support for financial wellness, legal assistance, and caregiver resources, as one-third of parents report feeling high levels of stress and 41% say that it interferes with their work and daily functioning.

Stage 4: College-bound kids

As children enter their teenage years, financial planning often shifts toward long-term education costs. Employer-sponsored 529 college savings plans allow employees to contribute pre-tax dollars toward qualified education expenses, with earnings that grow tax-free. Some states also offer additional tax deductions for contributions.

And for fathers carrying their own student debt, employer-sponsored student loan repayment assistance is a significant differentiator. Per the International Foundation of Employee Benefit Plans, only 14% of organizations currently offer student loan repayment programs, and 18% are actively considering adding one to attract talent (92%), retain workers (80%), and increase employee satisfaction and loyalty (58%).

The business case for supporting dads

Supporting fathers across these life stages is considerate, and it’s smart business.

Fathers represent a significant portion of the national labor force, with 93.7% with children under 18 actively participating, and clients who understand and address their needs will have a competitive advantage. The proof is in the numbers:

• 71% of U.S. employees say family-friendly policies are an important factor when evaluating a job offer
• Access to both maternity and paternity leave reduced turnover intent by 62%
• A well-designed benefits package can help SMBs avoid the cost of replacing an employee, which typically runs between 50% to 200% of their annual salary

How brokers and PEOs deliver more together

Building a benefits program that supports fathers from family formation to college planning requires access to a diverse benefits portfolio, administrative infrastructure, and compliance expertise that many small businesses don’t have in-house. That’s where brokers and PEOs can team up to make a big difference.

Through a co-employment model, a PEO like ExtensisHR gives SMBs access to Fortune 500-level benefits, including:

• Competitive health plans with dependent coverage
• Dependent Care FSAs
• Family-forming support
• EAPs
• 529 plan access
• Student loan repayment programs

With a PEO in the mix, what would otherwise require multiple vendors, complex compliance management, or dedicated HR staff is consolidated under one umbrella. For brokers, this is a way to bring a complete, scalable solution to SMB clients that evolves alongside employees as their lives and needs change.