By: Genesis Moreno
With the unemployment rate at an all-time low, it’s open season on new hires. Yet, companies recruiting the millennial workforce are scratching their heads on how to attract a generation looking for more than a nine-to-five. Can offering an employee benefit just for them do the trick?
VIDEO: https://www.cnbc.com/video/3000532014 (Source: CNBC)
The New Employee Benefit and Who Needs It Most
Retiring on a tropical island with piña coladas and shimmering tans is the dream, but most job candidates have too much student loan debt to think beyond their next paycheck 401ks, insurance packages, and retirement plans aren’t cutting it for the emerging workforce comprised largely of millennials, people born between the 1980s and early 2000s. In a study by Ed Assist, by 2025 75% of hiring candidates will be millennials with the majority having student loan debt.
Retirement perks can take a seat, because Student Loan benefits are the growing trend of the future. Only 4% of companies are ahead of the game, but 94% of employees demonstrate an interest reporting they’d participate in a financial wellness program if it was available.
Why Invest in Millennials
Millennials get a bad rap for job-hopping. What’s the point of providing benefits if they’ll leave within a year? But 83% of young workers say they would work for an employer for a long time if their needs were met.
Millennials aren’t job hoppers, they’re strategic opportunists. They’re always on the lookout for an opportunity that offers growth potential, purpose, and value. If they feel overlooked, they’ll take off for something more meaningful where they can make a difference. Offer value and they’ll stick around for good.
Why Employers Should Care About Student Loan Debt
Everyone knows stress can create disengagement at work. We’ve all had an overdue bill, a break-up, or a car accident to fret over. Unlike circumstantial stress, financial stress doesn’t go away. When a $1.4 trillion student loan debt crisis hit the fan, 44 million people experienced stress over their student loans on the daily. In an annual report by Merrill Lynch, 53% of employees reported their stress interfered with their ability to focus. Employees admitted to spending 2 hours a week worried about their finances, which amounts to 100 hours a year. Millennials average 4 hours a week wasting time over financial worries.
Available Student Loan Benefit Programs
Taking care of an employee’s needs goes hand-in-hand with maximizing a company’s productivity. Student Loan Repayment is an employee benefit that’ll perk some ears and here are just a few options to consider:
- Student Loan Repayment Assistance:
Employers contribute an amount to an employee’s monthly payment, which can range from $50 to $150 monthly. Resources on the best repayment option is not a guarantee.
- Refinancing Partnerships
Rather than making contributions, employers can choose to refer employees to private companies that specialize in refinancing. Although it’s a popular alternative, it comes with its drawbacks. Click here to find out more about refinancing.
- Educational Stipends
Employers may offer a yearly stipend that you can use for any educational expense like student loan repayment, pursuing a higher degree, or specialization certificates.
- NEW! Student Loan Forgiveness Benefit
At My Education Solutions, we know the demand is there and that’s why we’ve launched our own financial wellness program available to employers. The great thing about Student Loan Forgiveness is it’s free of cost to employers, provides employees with a discount upon enrollment, and tracking your organization’s activity is easy with our digital portal: simply 1) Sign Up with for a Unique Code & 2) Share the Link!
Employers, if you want to learn more about our financial wellness program, you can contact our office and we’ll host a free workshop for employees. Employees, ask your employer if they’re interested— it’s worth a shot!
Student Loan Benefits are a strong recruitment tool that’ll increase retention and engagement at work. It’s the trendiest way to hire faster and retain talent longer.