How Well Do Your Employee Benefits Address Talent Challenges?
Two of the most pressing talent challenges HR teams face include improving diversity and retaining millennial workers. To combat these issues, employers may have to think outside of the box when it comes to employee benefits. Student loan assistance is one benefit that’s gaining traction in workplaces across the country.
Improve Workplace Diversity
Student loans often disproportionately affect women and minorities. For instance, women hold two-thirds of student debt, and African American college graduates are twice as likely as white graduates to carry student loan debt.
Student loan assistance can be a unique financial incentive that companies use to engage these and other often-underrepresented groups in the workplace. Companies that do embrace gender and culturally diverse teams are 15-35 percent more likely to outperform other teams, according to McKinsey & Company.
Paying off student loans ranks high on the list of accomplishments for millennials. In a 2016 Millennial Benefit Preferences study, 265 millennials were asked: “Which of the following accomplishments is or would be the most meaningful to you?” The result: paying off student loans ranked first, beating out graduating college, getting a job, and receiving a promotion.
Traditionally, employees are on their own to pay off student loans. But when employers offer student loan assistance, there’s a loyalty-building opportunity to tackle student debt together.
Millennials also tend to be more willing to change jobs than preceding generations of young workers. In fact, a Gallup poll found that 60 percent of millennials are currently looking for another opportunity. Peanut Butter, Inc.’s student loan assistance offers a proven engagement tool to help retain this generation of “job hoppers.” For instance, monthly contributions are reinforced with email notifications that remind beneficiaries of their employer’s impact on their debt balance. Employees recognize that staying at their job means faster repayment of their loans and quicker attainment of becoming free from student debt.
Peanut Butter can provide student loan assistance benefits to Paychex clients. Learn more about how this benefit can help your organization meet its talent goals.