Real-Time Takes: The Benefits Cliff – Employer Solutions
A Policy Blogcast
Benefits Cliff: Employer and Policy Solutions
May 2026
Interview and article by Gabrielle Fortin
Across Ohio, many workers are facing an impossible choice: accept more hours or a raise and risk losing the benefits that help keep their families afloat. Known as the “benefits cliff,” this issue leaves many people financially worse off even after earning more income. Hear from Towards Employment staff and Dr. Travis Speice of the Cincinnati Women’s Fund about how the cliff impacts workers, employers, and economic mobility across the state. The article also highlights real solutions, including policy reforms and employer-led support systems like the NEO Employer Resource Network® (ERN) ran by Towards Employment.
As the cost of living continues to rise while wages fail to keep up, many Ohioans are struggling. One major reason families struggle is the ‘benefits cliff’, or the ‘cliff effect’. People fall off the “benefits cliff” when they earn slightly more money through extra hours, a raise, or a promotion, but then lose access to public benefits like childcare, food assistance, or healthcare that are worth more than the increase. In many cases, workers end up financially worse off despite earning more.
The benefits cliff is the result of bad policy, and it forces many workers into counterproductive choices. Some turn down raises or advancement opportunities because they cannot afford to lose the benefits that help them survive.
For many workers, this is not about wanting to “stay on benefits”, it’s about survival. Often, the small raise or extra hours someone receives still are not enough to replace the value of lost childcare, food, or healthcare assistance, leaving families unable to cover basic needs.
Check out conversations with Towards Employment staff members Shalia Shirley, Colleen, and Jennifer Crayon, along with Dr. Travis Spilker from the Cincinnati Women’s Fund, to hear how the benefits cliff impacts workers and families across Ohio every day.
While long-term policy changes at the state and federal level are needed to fully address the benefits cliff, employers can play a major role in supporting workers right now. Towards Employment’s NEO Employer Resource Network® (ERN) connects employees with on-site success coaches who help navigate challenges like housing, transportation, childcare, and public benefits — improving stability for workers while also increasing retention and productivity for employers. Coaches focus not only on helping employees stay stable, but also on helping them advance. They work with employees to anticipate how raises, promotions, or increased hours may impact their benefits and help identify ways to reduce or avoid harmful cliff effects so workers can continue building long-term economic mobility.
The ERN is a real, employer-driven solution to workforce challenges. Employers interested in bringing the ERN to their workplace can contact Staci at swampler@towardsemployment.org or, (216) 696-5750 x311 to learn more.
Employers can also make a difference by listening to employees to learn more about the support they need. For some workers, something as simple as a bus pass may be more valuable than more costly workplace benefits.
Policies like the Earned Income Tax Credit (EITC) could also help reduce the cliff effect and make it easier for families to advance financially without losing critical support overnight.
To learn more about the benefits cliff and available resources, visit:
About the Author
Gabrielle Fortin (she/her) is the Policy and Advocacy Associate at Towards Employment, where she began as a Cleveland Foundation Intern in May 2024. She is set to graduate from Case Western Reserve University in 2025 with dual B.A.s in Political Science and International Studies. Gabbi supports the Towards Employment Policy Action Plan, working to advance policies that promote economic mobility and equitable employment opportunities. She is passionate about social justice, community organizing, and loves Cleveland.
Towards Employment
Policy & Advocacy
Towards Employment promotes economic mobility, focusing on those most impacted by systemic racism. We educate and advocate for a more equitable workforce system where racial income gaps have been eliminated and everyone has access to family sustaining wages and quality jobs.
