Win The Talent War Through Student Loan Reimbursement
In 2016, student loan reimbursements were called the trailblazing benefit of 2017. With several young employees in my business, I’ve seen just how heavily these debts weigh on college graduates and even those in their 30s and 40s who continue to pay down massive sums. By packaging loan reimbursement as an employee benefit, companies can offer an eye-catching incentive and stand out to rising talent. Why Everyone Wants To Be Reimbursed The prevalence of U.S. student loan debt is no secret. In total, Americans owe $1.45 trillion in student loans. With about 44 million borrowers, that’s about $33,000 for the average graduate, with each graduating class going deeper in the hole than the last one. According to CNBC, carrying this much debt is taking a personal toll on young Americans. Half of them report that finance worries negatively affect their health. College debt is so common that it has broken the conversational taboo of personal finance. As a man in my 50s, it never would have occurred to me to talk about a debt I owed, but younger generations don’t see a problem. They talk about it in person, on social media and everywhere else young people congregate. When everyone is dealing with it, why keep it a secret? According to an article from last year, only about 4% of U.S. companies currently offer loan reimbursement programs. By repackaging bonus programs into reimbursement benefits, companies can address a millennial pain point in a way few of their competitors do. How To Build A Mutually Beneficial Reimbursement Program Follow these four steps to build a student loan reimbursement program that attracts better prospects without breaking the bank. 1. Make reimbursement a bonus. Student loan reimbursement programs are secretly bonus programs [...]