A few weeks paid time off, affordable healthcare and the standard employee benefits package for professionals may seal the deal for future hires but it is becoming more evident that a more innovative approach could be necessary for an age where scaling is a tough challenge for startups. Student Loan Genius could be the solution for employers to “be the hero” to millennials.
Bank Innovation’s CEO Tony Aguilar says that his product not only makes sense for employers and employees, but is a valuable recruiting and retention tool. The problem is that debt is the enemy of savings, and student loans mean millennials underfund their 401Ks—if they fund them at all. With Student Loan Genius, employers can “be the hero” and pay off a portion of an employee’s student loans, and deduct payments from paychecks later on.
Student Loan Genius offers three solutions to employers — one to enable employers to help employees manage debt; another to help work loan payments into payroll; and another where employees match loan payments, as they would match 401K contributions.
Why would employers match loan payments? Aguilar argued that it is for the same reason they would match retirement contributions: to increase financial wellness and security, and improve productivity. Financial worries distract 47% of the workforce, Student Loan Genius says. Employees also spend up to three hours a week dealing with personal financial issues, and no employer wants a distracted employee. Read Full Article
Source: Bank Innovation