1.74 trillion dollars. That’s the estimated revenue the US could miss out on because of labor shortages from unfilled roles and skills gaps. To put this into perspective, the current GDP of the US is about $26.5 trillion. This means that labor shortages may represent over 6% of the economy.
If we look at the US labor shortage across different industries, the transportation, health care, social assistance, and accommodation and food sectors currently have the highest numbers of job openings.
One of the reasons that employers are struggling to fill open roles is that today’s job seekers are looking for employment “on their own terms.” More Americans are shunning the idea of a traditional 9 a.m. to 5 p.m. workday with a 40-hour workweek and prioritizing non-traditional, gig, alternative, or flexible working.
What is a Non-traditional Worker?
Non-traditional work refers to a work schedule or environment that doesn’t have the constraints you often find with traditional jobs. These arrangements appeal to employees as they consider their personal lives, allowing them to find a greater work-life balance. They’re also becoming more common as companies recognize their benefits. Such options may boost employee productivity, reduce absenteeism, lower overhead costs, and ensure continued operations during busy times or emergencies.
The Downside
While non-traditional employment has many advantages, it can have a potential financial downside. Employees in this category may lack job security; their incomes are often volatile, and they generally don’t enjoy employer-provided benefits such as health insurance or a retirement plan. As such, they risk negative economic consequences both in the short and long term. Many find it difficult to deal with an emergency or may end up entering retirement without adequate savings or even finding themselves unable to retire.
Finding a one-size-fits-all policy solution to this issue is complicated by the fact that non-traditional workers are a diverse set of people—spanning different income brackets, industries, and roles—working as either primary or supplementary earners. To better meet the needs of our growing non-traditional workforce, policymakers are considering sustainable solutions that feature flexible and portable benefits decoupled from employment.
In the meantime, there’s much that employers can do to bridge the non-traditional worker benefits gap.
Adapting to the Future of Work with a Financial Wellness Program
The ever-changing social landscape and rapid technological advancements present new opportunities for companies to revolutionize financial education for their employees.
Forward-looking employers are exploring innovative financial wellness planning solutions to help all their employees, including non-traditional workers, build the skills to manage their finances responsibly and save for retirement.
A well-rounded solution like Payactiv’s financial wellness benefit will help workers meet their current and ongoing financial obligations, secure their financial futures, and make sustainable financial decisions. Some of the core objectives of such programs include establishing and maintaining good credit, enabling repayment of debts as they become due, saving for retirement, emergency preparedness, and addressing financial readiness and stability.
Factors to Consider in Implementing a Financial Wellness Program
Here are some pointers to consider in designing an accessible, tailored, and engaging program that prepares your workforce to tackle their unique financial challenges with confidence:
Embrace Technology
Employers should leverage technological advancements to make financial education more accessible and engaging. This might involve incorporating mobile apps and platforms, gamification, digital on-demand payment options, and virtual workshops that deliver personalized learning experiences that cater to workers’ diverse needs and preferences.
Focus on Personalization
Recognize that every employee has unique financial circumstances and strive to inject personalization into your financial wellness program. You can achieve this by using data-driven insights and advanced analytics to identify the specific needs of individual employees and tailor your educational content accordingly.
Expand the Scope of Financial Education
Financial wellness programs should extend beyond traditional topics such as budgeting, saving, and investing. Employers should incorporate education on new financial technologies and trends like digital payments and alternative investment options.
Workforce Planning for the Future of Work
Given the persistent talent crunch, it’s not surprising that employee retention is the number one priority for HR leaders in 2023 (20%), followed closely by recruiting (14%) and company culture (12%). Anticipating and delivering on all your employees’ well-being needs (both traditional and non-traditional ones) should be at the epicenter of your employee recruitment and retention strategy.
Securing the financial well-being of both traditional and non-traditional workers is increasingly becoming a winning strategy.
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