GumGum, a Santa Monica, California-based technology and artificial intelligence company, recently expanded their employee benefits portfolio to include student loan repayments. With the help of Goodly’s services in talent recruiting and employee retention, GumGum was recognized on Built in LA’s list of Best Places to Work in 2020.
GumGum has about 300 employees across the globe, and the majority of its U.S-based employees are Gen Z or millennials. U.S. student loan debt reached $1.6 billion in 2019, according to the Federal Reserve. About 44 million Americans deal with student loan debt, while only 8% of employers offer a form of a repayment benefit.
Because of these staggering statistics, GumGum executives decided to enhance their benefits offerings in order to attract and retain younger employees. Kelly Battelle, vice president of people operations for GumGum, explained that “Employees have a lot of choices today in terms of where they want to work in the media and technology industries. So any kind of additional thing employers can do to help them with the various stressors of life might be a decision-making factor for if they join the company.”
GumGum implemented this benefit at the beginning of this year, with 300 employees being eligible for the Goodly services. The student loan repayment strategy is based on a tenure, so employees with 0-2 years of experience will receive a student loan contribution of $50 per month from GumGum. Those with 2-4 years of experience at the company will receive $100 per month. And employees with more than 4 years will receive $200 per month.
Based on this model, the average GumGum employee is on track to complete their student loan payments 27% faster than without the benefit. With the help of Goodly, GumGum is able to enhance the overall wellness of its employees, the company culture, and the workforce loyalty.