HR Need to Know: Save money by addressing real employee needs
With total student debt nearing $1.5 trillion in the US, recent graduates are looking for ways to make extra money to pay back their debts. Many people take second jobs, weekend gigs, and side hustles just to help pay back their massive debts.
CareerBuilder found that about 32 percent of workers work a second job to help pay off their student debt.You can save your company money and time by addressing employees’ needs and increasing retention rates. First though, you need to be aware of what employees want.
Companies take many different approaches to entice employees to joining their workforce. Amazon experimented with implementing a 30-hour work week to help reduce burnout among employees, and Netflix even started giving one year of leave for new parents. However, these extra creative perks may not be as enticing as you might assume.
New graduates searching for jobs look for their ability to pay back their loans first. With this in mind, companies need to focus more on providing student loan benefit plans. Student loan benefit plans are one of the most enticing ways to draw employees and keep them long term, and many companies like New York Life and Mastercard have already caught on to the trend.
By providing long-term student loan benefit plans, like Student Loan Genius’ direct loan contribution plans, companies can reduce turnover and keep employees longer. Some independent studies report that losing an employee can cost between 1.5 and two times that employee’s salary. Add this to the cost of finding and training new employees, which can be as high as 25% (depending on your industry’s turnover rate), and the total losses can skyrocket quickly. If you focus on more impactful benefits packages, you can reduce costs for both losing existing employees and hiring new ones. The decrease in turnover will eventually lead to a dramatic return on investment for your company.
When hiring new employees, it’s important to keep in mind what is most important to them. In the current economic state, student debt is one of the biggest concerns. By providing the right solution to this widespread issue, you can help potential employees while reducing costs for your company.
We know HR teams’ focus is on helping employees have the best experience possible at the company, and our goal is to make sure you have this same experience when working with Student Loan Genius. We are dedicated to helping your company achieve the desired ROI. We want to partner with your company and work toward your goals with you.