How Innovative Approaches Can Support Non-Traditional Workers and Older Adults in Today’s Economy
The traditional concept of a support system is evolving as the nature of work changes and non-traditional career paths become more common. This shift necessitates a reimagining of how we support workers, particularly those pursuing alternative career trajectories and older individuals remaining in or re-entering the workforce.
The Changing Landscape of Work
The modern workforce is characterized by increased flexibility, gig economy jobs, and longer working lives. This new reality presents unique challenges for support systems originally designed for more traditional career paths.
Non-Traditional Career Paths
The U.S. Bureau of Labor Statistics has reported that upwards of 10% of the workforce is employed in an “alternative work arrangement.” Today’s workers often pursue careers that don’t follow the conventional 9-to-5 model. Today’s workforce includes many types of non-traditional jobs like freelancing, gig work, and independent contracting. While these jobs are hard to categorize neatly for statistics, they’re clearly becoming more common in our changing economy.
Having different career options is positive, but studies show a downside: workers in these non-traditional roles often struggle more with saving for retirement compared to those in conventional jobs.
- According to a survey released by financial firm Legal & General Group, 77% of gig workers say they would rely on their personal savings to fund their retirement. Additionally, 45% of gig workers do not expect to retire at 65, and 30% never expect to retire at all.
- Almost three out of four (73%) of freelancers surveyed by Legal & General Group expect Social Security to cover just 25% of their retirement expenses, according to the researchers.
These figures highlight the need for better retirement support systems for workers in non-traditional career paths.
Rethinking Support Systems
To address these evolving needs, policymakers and social care leaders are shifting their focus from treatment to prevention, aiming to create more resilient individuals and communities.
Flexible Benefits
Traditional benefits often don’t translate well to non-traditional work arrangements. New models should consider portable benefits that follow workers across jobs. Flexible benefits, also known as cafeteria plans or flexible benefit plans, allow employees to choose from a menu of benefit options to create a package that best suits their individual needs. This approach is particularly valuable for non-traditional workers, such as freelancers, gig workers, and part-time employees.
Key aspects of flexible benefits include:
- Customization: Employees can select benefits that align with their personal circumstances and priorities. For example, a young, single employee might opt for more retirement savings, while an employee with a family might prioritize health insurance and childcare benefits.
- Cost-effectiveness: By allowing employees to choose only the benefits they need, companies can potentially reduce overall benefit costs while still providing valuable options to workers.
- Adaptability: Flexible benefits can be adjusted as an employee’s needs change over time, providing ongoing relevance and value.
According to a survey by the Society for Human Resource Management (SHRM), 71% of organizations offer some form of flexible benefits. This trend is likely to continue growing as workforces become more diverse and demand for personalized benefits increases.
One innovative approach to flexible benefits is the use of Lifestyle Spending Accounts (LSAs). These employer-funded accounts allow employees to use allocated funds for a wide range of personal expenses, from fitness memberships to professional development courses. According to Forma, a benefits administration platform, LSAs can be particularly effective in addressing the diverse needs of a modern workforce.
For non-traditional workers, portable benefits are a crucial form of flexible benefits. These benefits are not tied to a specific employer but rather follow the worker across different jobs or gigs. A study by the Aspen Institute found that more than one in ten workers rely on non-traditional work arrangements for their primary income, highlighting the need for portable benefit solutions.
Flexible benefits can also include:
- Flexible work arrangements (remote work, flexible hours)
- Mental health support
- Professional development opportunities
- Wellness programs
- Childcare support
The importance of flexible benefits is underscored by changing workforce preferences. A survey found that 80% of self-employed workers would like flexible, shared, or portable benefits. This desire for flexibility extends to traditional employees as well, with many valuing work-life balance and personalized benefits over higher salaries.
Implementing flexible benefits can have significant positive impacts on employee satisfaction and retention. According to a study by MetLife, 72% of employees say that having customized benefits would increase their loyalty to their employer.
In conclusion, as the nature of work continues to evolve, flexible benefits are becoming an essential tool for attracting and retaining talent, particularly in non-traditional work arrangements. By offering personalized, adaptable benefit options, employers can better meet the diverse needs of their workforce while potentially improving cost-effectiveness and employee satisfaction.
Conclusion
Bridging the gap between traditional support systems and the needs of today’s diverse workforce requires innovative thinking and collaborative effort. By reimagining these systems, we can create a more inclusive and supportive environment for all workers, regardless of their career path, stage of life, or geographic location. This approach not only benefits individuals but also contributes to a more dynamic and resilient economy overall, particularly in regions like the rural South that face unique economic challenges.
