Education reimbursement is often considered a luxury when it comes to mainstream employee benefits, however, adding this to your benefits package may be crucial in the near future. It’s no secret that student debt is becoming increasingly burdensome on college graduates. According to CNBC, the total American student loan debt increased from $772 billion in 2009 to almost $1.6 trillion in 2019. That eye-popping statistic hits home for many college graduates still paying off student loans, and the monthly payments often force graduates to make sacrifices, like putting off buying a home and even taking on a second job. Now, employers have an opportunity to address this trend and make a mutually beneficial impact.
But how can offering education reimbursement benefits help an employer? Consider this. “Job-hopping” has become more common in the US, as employees increasingly see changing jobs as the best way to receive a better salary or benefits. A Gallup report found that 21% of Millennials changed jobs over the past year, which was over three times higher than non-Millennials. Gallup estimates that job-hopping costs American employers $30.5 billion each year from the Millennial segment alone! Nonetheless, an employer who thoroughly understands the struggles of its workforce can better position itself for success. Providing critical student loan assistance as a benefit can help attract the best candidates looking for a valuable compensation package. Well-designed education reimbursement plans can combat the effects of job-hopping by increasing individual reimbursement amounts based on an employee’s tenure with the company. And while education reimbursement helps attract and retain the best job candidates, the advantages don’t stop there. Employees who are more satisfied with their benefits are also more engaged at work, increasing productivity and profitability for your business.
If your business wants to hire the best candidates and keep them around for longer, start with Education Accounts by BASIC. We offer both Student Loan and Tuition Reimbursement Accounts, allowing you to help employees with student loan debt or invest in your workforce by reimbursing tuition. Both accounts offer extreme flexibility in plan design. Encourage long term employment and loyalty by setting up tiered benefit levels based on tenure, giving employees higher reimbursement amounts over time. And when we say Education Accounts offer total employer control, we mean it. Our Tuition Reimbursement Account lets you set eligibility requirements tailored to your business such as enrolling in specific programs, maintaining a minimum GPA, and more. As an industry leader in compliance, BASIC ensures that your plan falls within all applicable regulations so you can focus on what you do best.
Don’t wait to offer one the most highly sought after benefits for college graduates – request a proposal for Education Accounts today!