In my conversations with business and human resources leaders on the topic of student loan paydowns as an employee benefit, I sometimes get asked the question “Why don’t I just give my employees more cash instead and let them figure out where to spend it?”
The whole purpose of offering an employee benefit or perk is to reduce the time, stress and cost of an employee having to deal with it on their own. For example, enrolling in life insurance through an employer guarantees a certain amount of coverage, eliminates having to do blood work, and the risk of getting your application rejected. The same convenience applies to health insurance, or choosing investments for your retirement. Going through an employer saves the time and stress of having to figure it out yourself.
When evaluating employee benefits, business and human resources leaders should ask themselves, what are the biggest stress points in my employees’ lives right now and how can I help save them time, stress and/or money? Solving for that increases loyalty and workplace productivity, because chances are your employees will be dealing with at least some of their challenges while on the job.