Companies across America are adding a new benefit for their employees. Only a small percentage of companies are offering it but it has become one of the more sought after benefits for the young working population.
Source: Chicago Tribune
Companies across America are adding a new benefit for their employees. Only a small percentage of companies are offering it but it has become one of the more sought after benefits for the young working population. Student loan debt is wildly out of control with no end in sight to right the ship. Companies have been noticing this and some employers, like Staples, have been trying to figure out ways attract young workers to become employees.
The large office supply chain is providing $100 a month for up to 3 years to their full-time sales associates as well as high potential and top performing employees who are paying of student loan debt or if they are in the process of earning a degree so they can save extra money to pay it off in the future.
Only 4% of employers are offering student loan repayment help for their employees. Despite research showing that student debt is causing millennials to delay marriage, having children, and buying a home. In fact, 40% of Americans with student debt are behind on their payments because they must pay rent first, their car payment second, and then it trickles to their food budget and general living necessities. This puts a strain on the economy as a result because the people in debt and mainly millennials who we need to drive the economy simply can’t afford to spend because their money is already spoken for as soon as they receive a paycheck.
“With unemployment low, many companies are struggling to pull in and retain dedicated young workers with good skills, and increasingly they are eyeing help with student loans as a means to stand out as an employer,” said Gary Kushner, President of Kushner & Co. a benefits consulting firm based in Michigan. “As companies face recruiting difficulty — especially among millennials — help with student loans may become an increasingly attractive benefit. But the future may depend on whether the U.S. government institutes some kind of relief — a topic in this year’s election politics,” he said. Millennials – the most educated generation of all time – is seeking relief, some companies are trying to adapt to the new market of workers with incredible skills and work ethic that need assistance with their student debt. They often look for the company that will offer the most money whether or not it is actually in their field. With these benefits, they don’t have to make that sacrifice, and companies are getting wind of this and including student loan relief plans in their benefits package.
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