Latest HR Myth Busted by Human Resource Experts
As the new year is already in full swing, it is safe to say that one of the latest human resource myths has been debunked by various human resource office experts. One thing that often comes into question when complemplating a company’s budget while trying to stay competitive in a market space is the company’s benefits package. Companies are always looking for an edge on the competition and some find that edge in offering the right benefits. But what is the cost of offering the right benefits?
One benefit, in particular, that many companies lack understanding of is student loan benefits. A student loan repayment benefit is rather a more recent benefit that has only started to be implemented more regularly across benefits packages within the last year or so. Employers who decide to offer student loan benefits offer a life changing opportunity by granting peace of mind to many of its financially distressed employees. Student loan benefits work by allowing one’s employer to make payments towards their employees’ student loan debt.
Without giving it much thought, many hear “student loan payments” and naturally think it is an expensive benefit to offer. However, many HR experts have found quite the opposite when it comes to actually funding student loan benefits. Other than being a newer concept for benefits packages, this is another contributing factor for a low utilization rate. According to the Society for Human Resource Management, less than 5% of employers offer student loan benefits. But this does not have to be the case.
Fortune 500 companies, like Estée Lauder, were some of the first employers to offer student loan benefits and can attest that a student loan benefit is not expensive. Additionally, is it very easy to execute as it can be integrated directly with your company’s payroll system if you use Goodly’s platform. For non Fortune 500 companies, it is more affordable when allocating funds away from unpopular benefits. In addition to convenience, many companies can attest to the benefit’s recompense to the company itself.
By telling current and prospective employees that you will be contributing around a hundred dollars or so a month to their student loans, you instantly grow your company’s worth and become an employer that employees value. Offering something that other employers do not, increases employee retention which saves your company money on the back end. Less time and money is spent looking for replacements to fill the jobs that were vacated by employees who felt undervalued. Besides reducing employee attrition rates, offering student loan benefits is a very enticing principal when used in the recruiting process because of how appealing it is to new, young talent.
For those who are still concerned that student loan benefits are too costly, it is evident that offering this benefit is actually a reasonable investment when a company’s total rewards package is reevaluated in comparison. When keeping the best interests of both the company and the employees is a top priority, it is indisputable that student loan benefits are easy and cost effective.
- Written by Niko Lalos, Head of Sales & Business Operations