Young employees are a problematic audience when it comes to retirement benefit communication. They are also the most essential audience for HR to reach. To these workers, retirement is a long way off, and these team members have little extra in their paychecks to put toward retirement. HR teams must make a solid effort to appeal to young workers to get serious about retirement planning now.

These young workers wonder if they can retire at age 65. A considerable concern for many is paying back student loans. The stress of this often seeps into their performance in the workplace. However, HR can empower these young people with resources regarding student loan debt management and employer loan repayment assistance.

Information

The simplest and most affordable way HR can help young workers worried about retirement is by sharing information on what employees need to know about their student loans. HR can share online resources like loan payoff calculators. They can direct employees to student loan planning services, debt counseling and webinars that can assist. HR can do this by sending emails with links to the information.

Information is the most cost-friendly way for an organization to help. Young workers can benefit substantially from financial education resources, updates and guidance on student loans, budgeting tools and access to financial planners.

Employer Support

Young adults are attracted to employers who offer tuition support. Some employers offer loan repayment assistance, which is becoming increasingly popular. Companies can help employees pay back student loans through regular monthly payments. By doing this, employers can recruit, engage and retain more educated, productive and focused employees. Specific types of loan repayment assistance employers typically offer:

• Trading PTO/vacation time. If employees do not use all of their PTO or vacation time, they can cash in the remainder and apply it to a student loan instead of carrying it over.
• Matching contributions. Like a 401(k) plan, an employee can establish a student repayment program that allows employees to contribute their earnings toward their student debt, and employers can match the contributions at a percentage they are comfortable with.
• A signing bonus. When an employee first joins a company, the employer can offer them a lump sum payment upfront to put toward their student debt.
• Recurring payments. Perhaps the easiest way of offering student loan assistance is by making regular payments toward the debt.

Depending on the employer, young people can get help with student loans. Although only some will pay off the entire student loan balance, many offer some assistance. HR can provide its workers with information and tools for managing their student loans. If employer loan repayment assistance is available, these employers can offer help in numerous ways.

Exact Staff is the cost-effective, peace-of-mind way to staff your company. The team at Exact Staff is ready to provide your organization with quality employees eager to work.