With the job market being so competitive today, employers are seeking new ways to compete against other top companies for new talent in their sector while, at the same time, retaining their top performing veterans. Enter benefits packages. Brokers are now feeling the pressure as employers and talent recruiters are blowing up their phones and inboxes asking how they can revamp their benefits packages to better aid their companies.
The companies that are feeling the most pressure are the mid-major companies that have a stronger track record than the average small business but just aren’t quite there yet to be considered a Fortune 500, 1000, etc. enterprise. Fortune 500 companies are often household names that everyone knows so, in order to compete with that, many employers are finding success in staying up to date on the latest trends in the benefits industry.
Because just about every mid to large business already offers the conventional benefits like retirement, talent recruiters are looking for the latest benefits trends that can separate their company as a standout destination during the recruiting process. Staying keyed in on the latest trends allow employers to be in tune with the most attractive benefits and understand what current and prospective employees are looking for in a benefits package. When it comes to searching and actively recruiting the best candidates for a job, having a neoteric benefits package is a cutting edge tool.
More specifically, one benefit in particular can transform an average benefits package into one of the most desirable packages as of 2019, according to recent surveys. That one benefit is student loan repayment assistance and it is single handedly the strongest trending benefit this year. It was new to the benefits scene for 2018 but it growing tremendously into this new year. It is a benefit that is greatly underutilized given its value that creates for both employees and employers. At first glance, it seems that it would be an expensive benefit, however, it is very cost effective due to its ability to save a company hundreds of thousands of dollars on turnover on the back end.
Student loan benefits are so widely appealing for a number of reasons. First and foremost, the average median age of people with student loans, surprisingly enough, is above 40 years old. Second, about 7 out of 10 people graduate with student loans. Third, almost 1 in 4 student loan borrowers have become delinquent on their payments. As you see, student loan debt is a modern crisis affecting a wide range of Americans extending from recent grads to seasoned employees in their forties. With many people failing to pay their student debt, it is evident that student loans can have a crippling effect on your finances.
For employers, on the other hand, student loan benefits become a vanguard for retaining and developing loyal employees. Employees want to be at a company and a part of a team that cares. This leads to decreased attrition rates, which subsequently leads to less time and money spent on replacements and on-boarding. Productivity is inversely related to the attrition rate as that down time that would be used for prospect searching is otherwise invested and efficiently utilized working towards the company’s goals.