Smart organizations include Student Loan Assistance in their benefits packages because they’re aware of the increasing student loan debt burden their employees face and they know it’s an effective tool for hiring and retaining top college-educated talent.
If your company is contemplating offering other benefits–such as 529 Savings Plans or using PTO towards employee student debt–over Student Loan Assistance, here are a few considerations to keep in mind.
To date, there is no evidence or data to support that offering an employer-sponsored 529 Savings Plan or using PTO towards employee student debt will convince an employee to accept a job offer or stay at an organization longer because of the benefit.
Student Loan Assistance programs, however, have been shown to help companies hire 13 percent faster and retain talent 36 percent longer. The Millennial Benefits Preferences Study found that college-educated Millennials would prefer contributions to their student loans much more than any other benefit.
“We are seeing stronger employee retention in the population enrolled with Peanut Butter than the population without. We are also seeing more candidates come through our door!”
– Elena Martinez, Compliance and Regulatory Manager @ ProService Hawaii
Student Loan Assistance benefits also widen the pool of prospective college-educated talent, so that companies can make more selective hiring decisions in competitive markets.
Types of plans to consider include:
- Student Loan Repayment: Monthly contributions sent directly from the employer to the employee’s student loan servicer — a rapid way to reduce an employee’s student loan balance and a surefire way to improve retention and engagement in the workplace.
- Student Loan Resources: Online tools, curated advice, refinancing and debt counseling options to help employees make more informed decisions in managing their student debt themselves.
If your organization is ready to help reduce the burden of your employees’ student loan debt and see a measurable hiring and retention impact, click the button below.