Use student loan assistance to recruit and retain millennials
Published by: LifeWorks,
Companies have traditionally offered retirement benefits as a way to attract and retain talent. Recent college graduates, however, have a more pressing financial concern: student debt.
Student debt is having an adverse impact on quality of life and work productivity for millions college-educated workers. The figures are astonishing.
- 44 Million Americans carry student loan debt
- 71% of 2017 college graduates have student debt
- The average balance for 2017 grads is $37,172.
- Collectively, Americans owe $1.4 trillion
Peanut Butter’s Student Loan Assistance enables employers to make monthly contributions towards their employees’ student loan obligations and equips employees with resources to manage student debt, all while adding no additional administrative burdens for Human Resources teams. Student Loan Assistance makes employees feel loved and valued, and it presents a number of critical advantages for employers:
Commonly offered benefits like retirement plans and healthcare insurance afford employers little differentiation in the talent market. Additionally, these benefits may not be that attractive to recent graduates who can remain on their parents’ health plans and prefer to tackle their student debt before saving for retirement.
Alternatively, an impressive 85% of college-educated Millennials (21-34 years old), would accept a job offer when student loan repayment is included, according to The Millennial Benefit Preferences Study. Women, African Americans and Hispanic recruits hold disproportionately higher amounts of student debt, making this benefit a powerful tool to grow diversity. Student Loan Assistance can help you land your top college-educated recruits, which saves you time and money through the hiring process.
Employees love working for an employer that shows empathy and understands their student debt struggles. Peanut Butter’s monthly notifications remind employees about how their company is helping them fast-track loan repayment, and having their employer’s brand reinforced in a positive way, motivates your workers to stick around longer. A generation known as “job-hoppers” will stay at a job at least 36% longer when their employer offers Student Loan Assistance.
According to an Aon Hewitt study, workers with student loan debt are more pessimistic about their financial futures than those without loans. The Company’s Retirement Best Practice Leader, Heather Tredup noted, “while it’s not surprising that student loans can negatively impact workers’ wellbeing, the degree to which the stress is felt should be incredibly concerning to employers because financial stress has been shown to lead to a loss in productivity.” Helping to ease young workers’ number one source of financial stress will improve your worker’s lives and contribute to their higher productivity at work.
Student Loan Assistance is a win-win-win proposition.
- Workers get help with their student loans saving them years of stress and thousands in interest and fees.
- Employers differentiate themselves with young talent saving time and money associated with retention, recruitment.
- Everyone takes pride in being part of the solution to America’s $1.4 Trillion debt crisis.