Portable Benefits Are Not An If But A When

By Americans for a Modern Economy

July 13, 2022

As employers struggle to adapt to both the current labor challenges before them as well as prepare for long term systemic changes in the labor marketplace, the concept of portable benefits may offer many industries some level of workforce stability. The data is clear that the combined lack of healthcare coverage, paid leave benefits and adequate child care is shutting a significant cross section of the workforce out of the market - particularly in labor-intensive industries like retail and hospitality.

Two interesting experiments are underway that should grab the attention of employers. Just recently in Australia, Uber came to a landmark agreement with the country’s transportation unions to create an all-new, government-funded independent regulatory body, which would be responsible for rolling out a new minimum wage “safety net” for gig economy workers and offer them a framework to launch workplace disputes. Additionally, the company agreed to recognize the unionization efforts of its more than 100,000-strong Australian workforce. Uber’s American-based CEO, Dara Khosrowshahi, was effusive in his praise for the deal. While not a true “portable benefits” program, it is not that dissimilar. And, these past few days saw extensive media coverage of the province of Ontario likely to pursue a proposed benefits package for uninsured workers, including health and dental coverage.   

While details of both initiatives are unclear and still being developed, what is clear is that some type of portable benefits system will happen in the future, and in our estimation the near future. Employers should look at these developments as an opportunity to bring an increased level of stability and consistency to their operations and at the same time be viewed as a likely cost savings compared to the endless cycle of hiring bonuses, inflated wages and the inherent costs associated with consistently high attrition rates. 

At Americans for a Modern Economy, we believe that the pace of fundamental change in our economy will and should demand an equally  fundamental rethink of how we view the future of work as well as employment. We believe that portable benefits should potentially play a role in that rethink and we look forward to participating in that important dialogue.