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.
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Small businesses and employers know the value of a good worker. Great workers who are competent and valuable to your company are worth their weight in gold.
That’s why retaining your best workers is a must in the world of small businesses, where larger and higher-paying companies are all vying for the best talent in the market.
For a small business, high turnover can be a serious drain on resources. Depending on your industry, you may already be continuously looking for new hires. Additionally, losing an experienced worker can be 1.5 to 2 times more costly than that worker’s salary. With the tables stacked against you, small businesses might find it difficult to cope with the costs of replacing and training employees.
Fortunately, you can take advantage of the large student debt crisis to help attract employees and keep the ones you already have. Simply put, providing student loan benefits as a part of the benefits package at hire can be a great way to increase employee loyalty and reduce turnover rates.
Student loan benefit packages are a huge draw for recent graduates who need help paying off student debts. According to a survey conducted by American Student Assistance, about 86 percent of young workers say that they would commit to an employer who helped them pay off their student debts. Student loan benefits can help the employee as well as the company.
Companies offering student loan benefits have a much better chance of retaining and attracting the best workers. Small companies have a lot of velocity, and we want to help you harness that velocity by using our technology and benefit to attract the highest level of talent. As a small business, you may consider this as a worthwhile but expensive benefit package, but it doesn’t have to be.
Vault provides a multitude of services to employees through the employer to help meet their student loan payments. We offer one-on-one student loan debt consulting for employees and a proprietary web tool designed to find the best way to pay off debts, and even help companies set up direct contribution towards their employees’ student loans. If you are interested or want more information, contact us today.
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The Federal Reserve Bank of New York Consumer Credit Panel/Equifax Quarterly released its 2017 Fourth Quarter report on household debt.
It shows that total household debt has grown past $13 trillion dollars even as unemployment has steadily dropped. Almost more noteworthy is student loan debt has increased by a dramatic $21 billion increase in 2017’s fourth quarter. This isn’t a new development – it’s a continuing trend that shows no signs of stopping soon.
While mortgage debt is down and the unemployment rate is the lowest since 2000, these positives are heavily outweighed by the dramatic rise of student debt. It’s rising so quickly that the debt is beginning to affect older Americans who can’t afford to pay for their own retirement. One analysis reports the number of people over 60 with student loan debt has quadrupled in the last decade from $700,000 to $2.8 million. Even further, this burden is starting to affect social security, as money has to be garnished from these checks to pay for the skyrocketing student loan payments.
As you can imagine, many Americans would be willing to find a way to pay off student loans before their retirement. Companies that help accomplish just this by offering a student loan benefit can experiencing recruitment and retentions boosts as a result.
When you offer a student loan benefit package like Vault, you can also help employees be able to start putting money into a 401(k) plan. At a time when over 70% of college graduates have student debt, offering a way out from under the mountain of debt for your an employees, with added progress toward a retirement plan can have significant ROI for your bottom line due to the potential of decreased attrition.
At Vault, we work to give you the tools you need enable your employees to make the most of this benefit. If your company is looking to diversify employee benefits and increase retention, look into adding a student loan package. It could be the deciding factor for many job seekers looking for a company that wants to help them plan their future.
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The cost of tuition for degrees continues to rise, seemingly without an end. The U.S. Department of Education provides statistics that are neither shocking nor comforting
Today’s generation of workers isn’t loyal like the one before them. The average worker is armed with too much information. They know who’s paying the highest salaries thanks Glassdoor, and Indeed makes job searching possible with a click.
Recruiters scan resumes on all of these networks, trying to fill holes in their rosters. Because of this, employers take active measures against turnover. The average worker only stays with their current company for two years, but it’s been proven that if you can get an employee to make it to five years, they’re more likely to stay for over 10 years.
Offering a student loan repayment benefit is one critical way to keep employees engaged. Every month your company could make a contribution toward student loan debt and help employees save money. Currently, the student loan debt crisis is nearing 1.4 trillion dollars – those numbers mean there are multiple people on your staff right now who are drowning in a monthly bill that’s stopping them from buying a house or upgrading their car.
By adopting a monthly student loan benefit, not only is it a cultural win for the company, it also lets employees know that you care about their well being. And with the mentality of today’s teams, that’s a massive win because “impact” is everything.
Vault works with companies to realize their retention goals. We’ve seen the benefit catch fire with some of the world’s biggest brands, like New York Life, and there’s no shortage of employers looking for ways to empower their staff. Student loan repayment is a great place to start.
If this sounds like something you’re interested in exploring, feel free to connect with us. You could take a huge step toward retaining your best employees.
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