Student Loan Debt Repayment As a Recruiting Tactic
To attract and retain top talent in today’s competitive job market, many companies are now offering unique perks and benefits, such as student loan debt repayment.
The most agile and adaptable companies are pivoting from outdated recruiting methods toward what resonates with today’s job seeker and meets their needs. While employees continue to place value on work-life balance, corporate empathy, and professional development, student loan debt repayment is now one of the most attractive benefits a company can offer. In fact, 86 percent of employees would commit to a company for 5 years if the employer helped pay back their student loans.
Why Candidates Want Student Loan Debt Repayment
In student loan repayment plans, employers make monthly contributions directly to employees’ student loan servicers while they continue to make regular payments. Since student loan debt can be a tremendous burden, receiving financial support from employers can be a huge selling point for candidates. This benefit can help them with financial planning, including saving for retirement, and enable them to be more focused and productive at work.
For Employers, It’s a Win-Win
Having debt repayment as a benefit not only helps employees pay off current student loans, but also encourages them to pursue further education and training. Doing so may have not been an option for some employees otherwise, if they were hesitant to incur more debt. With financial support from their employers, employees may be more likely to go back to school to uplevel their skills or develop new ones.
This is a win-win for companies because offering student loan debt repayment can help their employees grow professionally and become more proficient at their jobs while also attracting new candidates. In today’s job market, strong candidates are more likely to want to work for a company that invests in their career development and growth. Since they’re driven and striving to grow professionally, they are also more likely to have desirable traits and skills that can contribute to a company’s success in the future.
Companies Need to Embrace the New Normal
Debt repayment is not the only change to the workplace that employers are adopting. Many of the new workplace trends that resulted from COVID-19 will continue to stay in practice to some degree. For both employers and employees, it can be challenging to understand which changes are temporary and which are permanent. Embracing the new normal is going to help both sides accept that the pandemic has transformed the landscape of work for everyone in some way or another.
Along with student loan debt repayment, many companies are exploring wellness benefits to support their recruiting efforts. Check out our recent blog post to learn more.
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