Student loan debt has exceeded both credit card and auto loan debt, according to the Federal Reserve. If you employ millennials, many of your own employees are probably struggling with how to pay off student loan debt while also planning for retirement. This financial challenge is not only taking an emotional toll on your employees, it’s also putting pressure on your business. Here are 3 reasons a student loan repayment benefit is a good choice for a well-rounded benefit package.
Struggling Employees, Struggling Business
A study by Laurel Road, discussed in 5 reasons to offer a student loan repayment benefit in 2019, revealed that more than half of college-educated adults are concerned they won’t make enough money to achieve financial goals. This distraction is increasingly becoming a burden on businesses through lost productivity and, worse yet, the loss of skilled talent. More employees are choosing to hop jobs for a better paycheck and benefit options. According to the EBN article, “Americans are quitting their jobs at the fastest rate since 2001.” This alone is spurring more businesses to take action.
3 Reasons to Offer a Student Loan Repayment Program
Millennials are looking for more practical benefit programs – coffee room perks and fancy gyms are nice, but don’t pay the bills. Offering a student loan repayment benefit is a good choice for both your employees and your business. The bonus to adding this type of program to a benefit package is the high payback at a minimal cost.
- Little to no cost to administer: Loan repayment assistance is simple, effective and has a high return on investment. GotZoom offers 70 federal student loan repayment and forgiveness programs. Reducing the burden on employees is quick, improves recruitment and retention, and costs little to the employer.
- Reduce employee financial stress: Employees struggle with how to reduce student loan debt while also planning for retirement. The IRS has even weighed in by releasing a Private Letter Ruling stating that employee student loan payments can qualify for an employer-funded 401K match. By helping employees accomplish both debt reduction and retirement planning, the financial stress seen in the workplace is greatly reduced.
- Improve productivity: A study by Willis Towers Watson indicates that 31% of employees admit that money concerns affect their work. Thinking about how to solve money problems has an impact on both the quality of work and productivity. By alleviating student loan repayment concerns, you are reducing the stress and anxiety of your employees which will then manifest with improved productivity.
Reduce Financial Woes, Improve the Bottom Line with Student Loan Repayment Benefit
Skilled employees contribute to the success of your business. If they struggle, your business struggles. By helping your employees alleviate financial stress, you also improve your bottom line. As the millennial demographic continues to increase in the workforce, a student loan repayment program makes a solid addition to a well-rounded benefit package. Contact Integrity Data for more information about GotZoom and other financial wellness options that will support your employees and your business.