With the job market reaching new heights, employers are learning that it is becoming increasingly harder to differentiate themselves as a preferred destination for top talent. This being the case, employers are starting to turn to student loan repayment benefits to be an important facet of their company’s benefits package in the recruiting and retention process. According to SHRM, only about 4% of employers offered student loan benefits as of mid-2018. Nevertheless, with unemployment not showing any imminent signs of rising, research and employee surveys show that the proof is in the pudding - student loan benefits is something that employees want in 2019 and are willing to give up paid vacations and other benefit plans in exchange for them.
Having a competitive edge is something every company needs in order to be successful in the long run, but having an edge on the competition throughout the recruiting process is a gamechanger. Employers understand that by being flexible and supportive of employee financial wellness that they are more likely to not only land top candidates but also retain top performing employees at their company. Lowering employee attrition should always be a company focus because it saves them hundreds of thousands of dollars on turnover that would otherwise be wasted on replacement and onboarding.
Making sure you are on par with saving for retirement is always a major concern for Americans. However, this financial concern has started to take the back seat more recently due to student loan debt becoming a more alarming issue for almost the majority of the workforce. Some firms are finding a lot of success in being adaptive in allowing employees to pick between retirement matching, student loan repayment, or a combination of both, according to EBN. Providing options when it comes to financial benefits shows that employers actually care about their employees’ financial stability and wellness.
One of the biggest pushbacks against student loan benefits is the idea that it causes an administrative nightmare for HR. Having to verify, authorize, and monitor all of the loans and payments can be a real pain. However, firms can avoid any and all burden by working with the right vendor. Right now, there is only one platform that conveniently integrates with companies’ payroll and retirement provider, mitigating any additional work for companies and allowing student loan benefits to be administered seamlessly.