The food and beverage production industry has felt firsthand the pain of worker shortages: 45% of food manufacturers say retention is a top issue;¹ some 360,000 jobs were unfilled in nondurable goods manufacturing (including food and beverage) as of July 2021.²

The current situation has led to reduced capacity at some operations. For example, a Cargill turkey plant in Virginia was running at 70% in late 2021.

Food and beverage manufacturers often can’t offer widespread pay raises to keep workers, but they can turn to benefits as one means to keep positions filled. Voluntary benefits play a big role.

The numbers on food and beverage employment

Food and beverage processors employed 1.7 million workers in 2019, representing almost 15% of all manufacturing employment.³ Nationally, 28.7% were immigrants, but that number rose to more than 40% in certain states including California, Florida and New Jersey.⁴ Certain segments, like meatpacking, employ a disproportionate number of people of color, immigrants and those from comparatively low-income families.⁵

These can be difficult, dangerous jobs with high rates of accidents and turnover. Like half of all Americans, many food and beverage workers live paycheck to paycheck. They are also among the 80% of workers who want benefits geared to their circumstances and age.⁶ Funded by the employer or not, voluntary benefits have value to workers in this highly competitive labor market.

Here are some options to consider:

• Supplemental health: Workers are often stretched to cover out-of-pocket medical costs. Supplemental health coverage pays benefits to members directly for treatments related to injuries, the costs of hospitalization or a covered critical condition.

• Accident insurance: If an employee or the employee’s family members suffer an accident away from the job, accident insurance helps pay for treatment. This coverage can help reduce workers’ comp claims, as the funds enable employees to pay for treatment (rather than delaying it) if they are hurt.

• Digital benefits wallets: Easy access to benefits doesn’t just help employee wellness but boosts engagement. So-called digital “wallets” are a representation of benefits details, with a “card” for every offering on a smartphone. These cards can help workers access everything from 24/7 telemedicine to mental health and caregiver support services and discounts for prescription drugs. These wallets are particularly helpful when 85% of Americans own smartphones.⁷

• Legal services benefits: Group legal plans ensure access to professional legal help for everything from traffic tickets and small claims to landlord and immigration issues. They are good for employers on multiple fronts beyond recruitment, helping reduce presenteeism and absenteeism.

• Early wage access: These programs give employees access to earnings that have accrued between paychecks. Early wage access can be an attractive option for food and beverage workers to help avoid predatory lending and other practices that can hurt their finances.

Contact a HUB International Agribusiness expert for more information and insights on leveraging benefits for employees. Additionally, you can learn more about voluntary benefits here!

¹ Deloitte, “;Deloitte and FMI – The Food Industry Association: New Study Examines the Future of Work in the Food Industry,” July 27, 2021.
² Food Processing, “Where Did All of the Food & Beverage Workers Go?” Nov. 2, 2021.
³ U.S. Department of Agriculture, Economic Research Service, “Manufacturing: Food and Beverage Manufacturing,” Dec. 22, 2021.
⁴ New American Economy, “Covid-19: Immigrant Workers Are Essential in Securing U.S. Food Supply Chain,” April 16, 2020.
⁵ Center For Economic and Policy Research, “Meatpacking Workers are a Diverse Group Who Need Better Protections,” April 29, 2020.
⁶ MetLife, Navigating Together: Supporting Employee Well-Being in Uncertain Times, accessed March 18, 2022.
⁷ Pew Research Center, “Mobile Technology and Home Broadband 2021,” June 3, 2021.