Pilot Program Aims to Help Workers Overcome the “Cliff Effect”

While most employees would normally welcome a raise or promotion, that is not always the case for everyone. Some workers are actually turning down opportunities to earn more money, leaving employers confused about why.

According to leaders at Springfield WORKS, the answer often lies in what is known as the “cliff effect.” This happens when an increase in income causes someone to lose access to public benefits such as housing, food assistance, or childcare support. In many situations, the loss of these benefits outweighs the extra income, putting workers in a worse financial position than before.

To address this issue, Springfield WORKS has launched a program called Bridge to Prosperity. Developed in collaboration with partners across Western Massachusetts, the initiative is designed to help workers continue advancing in their careers without facing sudden financial setbacks.

The program officially began earlier this year with an initial group of 18 participants located in Springfield, Boston, and Worcester. Funding for the initiative started with federal relief dollars and has since grown through a mix of public and private investment.

At its core, Bridge to Prosperity focuses on helping individuals move forward economically while maintaining stability. Participants receive monthly financial support to offset the loss of benefits that may come with higher wages. These payments are intended to fill the gap until individuals are earning enough to fully support themselves without assistance.

In addition to financial support, the program offers career and financial coaching. Participants work with trained professionals to build budgeting skills, set career goals, and plan for long-term success. Community organizations also play a key role by providing additional resources and support services.

Employers are another important part of the program. By partnering with local businesses, the initiative helps create clearer career pathways that lead to sustainable wages. At the same time, employers gain a better understanding of how the cliff effect impacts their workforce and why some employees hesitate to move up.

Many of the current participants are pursuing careers in healthcare, an industry that continues to face workforce shortages. Program leaders see this as an opportunity to both support workers and meet employer demand by helping individuals advance into higher-paying roles over time.

A unique feature of the program is a long-term incentive. After completing two years, participants are eligible for a significant financial bonus that can be used toward major life investments, such as housing or transportation. This added support is intended to create lasting stability beyond the program itself.

For many individuals, the program is already making a meaningful difference. Participants report feeling more confident in their ability to pursue career goals while still supporting their families.

Looking ahead, Springfield WORKS hopes to expand the program to serve up to 100 participants. Leaders also plan to use the data and outcomes from the pilot to inform broader policy changes aimed at reducing the impact of the cliff effect across the state.

Ultimately, the goal is to remove barriers that prevent people from advancing in their careers. By creating a system that supports workers as they transition to higher wages, programs like Bridge to Prosperity aim to build stronger, more stable communities.