1. STRESS ACHES | EMPLOYER COST: UP TO $12,500 PER EMPLOYEE
Stress hurts. Debt stress hurts severely, and can even kill. Data from a 2013 Purchasing Power study shows that debt-stressed employees are twice as likely to have a heart attack, three times more prone to ulcers, and their risk of suffering anxiety and depression goes up more than 500% when compared to peers without debt-stress.
What’s the real potential cost of these aches? Data from the American Heart Association and Centers for Disease Control both show that the debt-stress of an employee making $75,000 per year could cost a company up to $12,467, or almost 17% of that employee’s salary.
Here’s some conservative math:
$4,374.72 14 Days (minimum) Heart Attack Recovery a
$4,499.71 14.4 Days Depression-Related Absenteeism b
$3,593.52 11.5 Days of Depression-Related Productivity Loss b
$12,467.95* Potential cost of a debt-stressed employee*
2. PRODUCTIVITY BREAKS | UP $7,000 PER EMPLOYEE
Even if an employee manages to stay healthy while facing debt stress, the presence of the debt can be a huge distraction. These distractions can cost employers millions.
According to Purchasing Power, 46% of employees are spending 2-3 hours per week worrying about financial stress. In addition, an Association for Financial Counseling Planning and Education c report showed that the average employer is suffering from $7,000 in lost productivity costs per employee each year due to financial stress. For a company of 1,000 employees, that’s up to $7,000,000 in disappearing productivity.
3. THE REVOLVING DOOR OF RELIEF | $16,000+ PER EMPLOYEE
Last but not least, almost 20% of employees seek debt stress relief through departure, according to Bureau of Labor and Statistics. Incremental salary bumps and disconnected benefits can cause employees to look to the exit sign as their only option.
According to Zen Workplace reports, that option turns into $16,000 spent to replace an entry level employee.
In the words of one student loan borrower we surveyed, “I did not plan on staying. But, if my company offers a way to reduce my student loan debt, I would definitely stay.”
BOTTOM LINE RELIEF
GET STUDENT LOAN BENEFITS.
Contact us below to learn how a student loan benefit can help your organization.
Ultimately, employee student loans and other debts are a growing problem for companies. If you’re concerned that employees in your organization may be facing a problems with student loan debt (which often leads to other types of debt), Contact Us to talk about how student loan benefits can help reduce employee stress and provide bottom-line relief.
*Calculation based on a $75,000 salary and a $39.06 hourly pay rate.
a “Heart attack Recovery Facts,” American Heart Association
b “Workplace Health Promotion: Depression” Centers for Disease Control
c “Workplace Financial Education Improves Personal Financial Wellness, ” Association for Financial Counseling Planning and Education
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