Mainebiz

E very day, Maine business leaders make decisions that shape hiring, compensa- tion, benefits, and growth. Yet one segment of the workforce, essential to nearly every industry, is often misunderstood. That workforce is ALICE. ALICE stands for Asset Limited, Income Constrained, Employed. These are individ- uals who work, sometimes in multiple jobs, yet still struggle to afford basic necessities such as housing, child care, transportation, food, and healthcare. According to research from United Way's ALICE initiative, 40% of Maine house- holds live below the ALICE Threshold, meaning they struggle to consistently afford the basic cost of living. They include educators, retail asso- ciates, hospitality workers, healthcare support staff, manufacturing workers, and administrative professionals whose incomes often fall short of the cost of living in Maine. The ALICE Household Survival Budget reflects the actual local cost of essentials such as housing, child care, transportation, and healthcare. For many Maine households, full-time employment still does not produce enough income to cover those expenses. For example, the ALICE Household Survival Budget estimates that a Maine family of four with an infant and a preschool- er needs approximately $90,636 annually to cover only the essentials, nearly three times the federal poverty level used to determine eligibility for many assistance programs. For employers, this isn't simply a social issue. It is a workforce issue. When employ- ees face ongoing financial strain, businesses often experience higher turnover, increased absenteeism, and reduced engagement. Recruitment and retention challenges are often influenced by the rising cost of living, which is outpacing what many working households can afford. For example, home prices in Maine have nearly doubled since 2018, contributing to housing costs that have outpaced many household budgets. For employers already struggling to attract talent, rising housing, child care, and transportation costs can undermine recruitment and retention efforts despite significant hiring investments. Understanding ALICE helps employers evaluate workforce strategies and the economic pressures influencing employee performance and retention. As Maine employers navigate workforce shortages and changing employee expec- tations, understanding ALICE provides an important lens for decision-making. Through this series, United Way will explore ALICE's impact on Maine's workforce, highlight employer-led solutions, and share practical strategies businesses can use to strengthen workforce stability. For Maine's business community, under- standing ALICE is more than an exercise in awareness. It's a critical step toward building a resilient workforce, a stronger economy, and a thriving future for Maine. UNDERSTANDING ALICE The Workforce You Can't Afford to Overlook S P O N S O R E D C O N T E N T EMPLOYER SPOTLIGHT: ALLAGASH BREWING COMPANY When employee feedback revealed that child care costs were creating financial stress for working families, Allagash Brewing Company responded with a $750 annual child care stipend per child. The stipend is contributed tax-free through employees' dependent care flexible spending accounts, increasing its value for families while reducing payroll tax costs for the company. The company recognized that child care challenges can affect employees' ability to manage work and family responsibilities, making it an important workforce consideration. Rather than assuming what employees needed most, Allagash started by listening. Employee feedback helped identify child care as a serious pressure point, allowing the company to focus resources on a benefit that addressed a real and immediate need. Using an existing tax-advantaged benefit allowed employees to receive more value than a traditional bonus while also reducing payroll taxes. Lesson Learned: Effective workforce solutions do not always require sweeping changes. By listening to employees and addressing specific barriers, employers can create targeted benefits that support working families, strengthen workplace culture, and improve employee engagement. As Allagash's experience demonstrates: "We have found that benefits and programs we originally put into effect to help lower-wage earners actually help with retention for everyone at the company, and it has definitely made a difference in our culture." — Celine Frueh, Allagash Brewing Company This article is part of United Way of Southern Maine's ALICE workforce series exploring the challenges and opportunities facing Maine's working households and the employers who rely on them. This series is made possible through the support of Unum. Learn more at aliceinmaine.org.

• Cover