Enticing talented employees into your organization is tough, and keeping them there is harder still. That’s why strategizing to recruit and retain the cream of the crop is crucial to the long-term success of any business.
In the modern age, student debt can be leveraged for precisely this purpose, so let’s look at how to do this, and why it matters to the latest generation of employees.
The first way to appeal to prospective employees with student debt hanging over them is by offering them management solutions for their loans.
As part of this process, you need to understand how to leverage these types of programs in order to remain competitive in hiring and recruiting top-tier employees.
Start by researching different repayment options, such as income-driven plans and refinancing lenders available through private companies, so that these can be recommended to new hires. For instance, the SoFi student loan rate might be preferable to packages that they are currently contributing to, in which case assisting them with the switch makes sense.
You should also consider offering employer contributions towards employee loan payments as part of an overall benefits package, which could be very attractive to potential employees who are struggling with keeping up with the cost of this debt month by month.
Additionally, employers may want to explore partnerships with financial literacy organizations, which offer free online courses on budgeting, debt reduction strategies, and investments. That way, young professionals can develop better money habits, while reducing their debts more quickly.
All of this should go towards setting your business apart and singling it out as being aware of how much the cost of education has increased in recent years. With $1.75 trillion in student loan debt right now, this is arguably the biggest financial challenge any educated individual will face. Employers that support the sacrifices they made to acquire the skills that make them an asset to the organization will be rewarded with loyalty.
While you can harness student debt-based benefits as a means of drawing prospects to your company and guaranteeing their commitment to it in the long term, there are aspects to be aware of from a tax perspective.
For example, employers can offer student loan repayments as part of an employee’s benefits package, as mentioned, although this would count towards their taxable income. You have to be aware of this so that you don’t miss-sell the details of the benefits that you provide during the recruitment stage.
Additionally, you can explore tax credits or deductions associated with providing financial assistance for education costs such as tuition fees or books, in the case that you provide funding for any future employees who are still in the process of studying.
Businesses may also consider consulting with a certified public accountant (CPA) about opportunities related to employer-paid educational expenses, which could potentially include incentives like tuition reimbursement programs or scholarship funds provided by companies to help employees pay off their debts more quickly.
By understanding how these types of programs can impact taxes and other legal considerations, businesses will have a better chance at creating successful recruitment and retention strategies that leverage student debt solutions effectively, while remaining compliant with regulations in each jurisdiction where they operate.
If you’ve put a lot of time and effort into the creation of an employee benefits program that includes student debt-related aspects, you need to ensure that it is properly promoted to the people that you are aiming to recruit.
Your marketing efforts need to showcase these benefits in a way that resonates with potential employees and encourages them to join the team. This means utilizing different types of media such as websites, print materials, social media posts, and other digital channels in order to highlight your offerings, focusing on any student loan repayment solutions or tuition reimbursement plans you have available.
It’s also important to communicate clearly about these policies and perks. This includes making sure all relevant information is easily accessible on your website, or through an HR platform, so that applicants can find answers quickly when researching job opportunities at your company.
For the time being, student debt looks like it is here to stay, and that means it will be an issue that employers can offer to address for new and current employees. This is not only about bringing them on board and keeping them loyal but also about showing that they’re valued and boosting their job satisfaction as a result. So strategizing in this area is always worthwhile, no matter the demographics you’re targeting with your recruitment drives.