The simple answer is yes! By doing so, you’ll attract, retain and engage top college-educated talent at your company.
Twenty-six percent of the U.S. workforce and 69 percent of 2018 college graduates are encumbered by student loans, with the national total student loan debt total climbing steadily towards $1.6T. Student loan assistance has quickly become the #1 benefit desired by college-educated talent. For many, getting out from under student debt is a more meaningful accomplishment than:
- Graduating college
- Getting their first job
- Receiving a promotion
When employers offer student loan assistance, they quickly notice three improvements:
They Hire Top Talent 13 Percent Faster
The Bureau of Labor Statistics reports1 that August’s U.S. unemployment rate was 3.8%, and college-educated unemployment2 was even lower at 2.0%, continuing the trend where unemployment rates have reached their lowest point in over 50 years.
In today’s highly competitive market for talent, offering student loan assistance as a benefit is the best way for employers to attract the right people, and fast. The Millennial Benefit Preferences Study3 found that 85 percent of respondents would accept a job offer if student loan repayment was included.
Employee Tenure Increases by 36 Percent
Job hopping is high and replacing talent is expensive and time-consuming. Recruiters must spend both time and money on finding the perfect replacements, and there is often a decrease in overall company productivity after an employee departs.
Employers who make contributions to workers’ student debt engage them in a meaningful way, and in turn, save on costs of recruitment and turnover.
Gender and Cultural Diversity Improve
Did you know?
- ⅔ of student debt is held by women
- African Americans and Hispanics, on average, hold two times more student debt than their white peers
Companies that help pay down student loans can capitalize on a unique opportunity to engage these often underrepresented groups and accelerate the positive impact of gender and cultural diversity within their workplace and beyond.