The latest benefit has the block hot with HR managers, talent recruiters, total rewards directors, and more all raving about how student loan repayment assistance is the best benefit a company can offer as of 2019. This craze comes from an almost majority of the workforce having some form of student loans. Compile that with enterprises yearning to stay competitive, and you get this year’s biggest difference-making benefit.
Offering a benefit that makes supplemental contributions on top of employees’ regular monthly payments allows employees to gain financial wellness and happiness, a strong reason for employees to want to stay with a company for more than just a couple of years.
With 70% of graduates now entering the workforce with student loans, it's pretty obvious why companies offering student loan benefits are the ones having no trouble recruiting and retaining new talent. More interestingly enough, according to Forbes, the fastest growing age group with student loans is actually ages 60-69. This sheds light on the idea that this type of benefit can, in fact, be beneficial to older employees and not just millennials.
For those keeping track at home, the national student debt toll is getting well above $1.5 trillion and shows no signs of halting. Companies are finding a huge upside in the midst of this financial crisis, crediting student loan repayment benefits as one of the biggest reasons, if not the biggest reason, employees are joining their company. In addition, companies are also enjoying the luxury of a reduction in turnover costs by more than half as an aftereffect of increased employee retention.
In the context of contemplating offering student loan benefits, the positives outweigh the negatives, very heavily. Employee financial wellness, top new talent, employee retention, fewer turnover costs - the list goes on. Don’t wait for your employees to bring it to your attention because they might leave in the meantime. Revamp your student loan benefits package in just 15 minutes with Goodly.
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