Attracting talent is an ever-evolving challenge for HR managers and hiring decision makers. From recruiting via social media to virtual hiring interviews in other countries or time zones, the recruiting environment has changed. Once a new employee is hired, then the countdown clock begins — how long will this employee stick around? Will we be able to keep him/her for a long enough time to help stave off recruiting and training costs? How do we stay competitive and keep our talent from getting poached?
One change that employer organizations have traditionally thought of less often — and an area where they need more immediate focus — is employee benefits.
Does your company offer gym memberships? Newly designed work spaces? Taco Tuesdays? You might be surprised to know these some of the benefits and perks won’t help you keep your talent as much as others.
What Our Study Found: Offering Student Loan Repayment Can Help
A recent Millennial Benefit Preferences (MBP) study found that nearly seventy-five percent of Millennials are unhappy with at least one company benefit or perk. Administered by FC Consulting and sponsored by Peanut Butter, Inc., the study uncovered the traditional benefits and perks offered to help attract and retain top talent may be outdated.
This study, which surveyed college-educated Millennials’ benefits preferences and corresponding employer implications, discovered student loan matching as the top benefit Millennials requested. When polled and given the choice between two job offers, 85 percent of Millennials said they would accept a job if the employer offered student loan repayment.
What’s more, student loan repayment was valued more than many other traditional company perks.
The study asked respondents to allocate employer spend across various benefits and perks and found that the average respondent prefers student loan repayment almost twice as much as 401(k) contributions, two times more than health insurance contributions, seven times more than free food, 11 times more than free gym memberships and 12 times more than enhancements to the workplace environment.
When competing for talent, it’s easy for costs to get out of hand – offering the same 401(k) match as competitors, paying health and supplemental insurance premiums, company paid meals and more. All of these factor into an employee’s total compensation, so it’s important to understand how employees value these rewards.
About the Study:
The Millennial Benefit Preferences survey was administered online in August 2015. It received 400 responses from individuals age 21-34 with at least some college education. The study was sponsored by Peanut Butter, Inc., and the survey was designed, administered and analyzed by FC Consulting, a DePaul University student group comprised of Master Degree candidates in the Marketing Analysis discipline.
About Peanut Butter
Peanut Butter helps top employers offer a unique student loan benefit to attract and retain Millennial employees. By making modest contributions to employee student loans, companies can help employees avoid substantial amounts of principal and interest, helping them to get out of debt years sooner than they otherwise would. The attraction of lower student debt can increase quantity and quality of job applicants, while the result of lower student loan debt can materially change an employee’s decision to seek another job.
Learn more at getpeanutbutter.com, or get started today by creating your company’s student loan repayment plan.