March 1, 2020Uncategorized
Today’s workers and professionals give special interest in having an employee benefits program that allows them to balance their work and personal life.
Large brands or SMEs around the world are implementing social benefit programs as a way to boost the company’s growth. Promoting an employee benefits program is the greatest tool for attracting, loyalty, and even directing the actions of employees based on corporate objectives.
A popular strategy is an employer paying student loans. In today’s era, the global student loan debt amounts to more than $2 trillion. It lends a devastating impact on personal finance of employees who are motivated to setup their careers but bear the burden of student loan repayment and high interest rates.
But companies are moving into this direction and there is good reason why. This articles covers why an employer paying student loans is important:
1. Constant motivation
Research from around the world has shown that job satisfaction for workers is one of the advantages of employer paying student loans. This translates into optimal performance and higher productivity.
Other practices, such as absenteeism and employee turnover, also reduce. Employee motivation also has an effect on workers’ health, through flexible hours, work from home, days off for birthdays. It is a way of personal compensation that commits the worker to give the best of himself.
2. Tax advantages
Consolidating an employee benefits program reports tax or liquidity benefits to companies. The legislation of most countries provides tax incentives to companies that promote these practices with their staff to improve the competitive position between them and, in turn, raise levels of work efficiency.
What is it about? The State provides economic benefits to companies that formally link an employee benefits program as part of their policies.
Although these benefits vary by country, they can be treated from the priority of credits from state agencies to enjoying tariff benefits in the importation of machinery and equipment.
3. Employee loyalty
Achieving employee loyalty and having the ability to retain talent is one of the objectives of the employer paying student loans. The worker is favored in aspects such as a good working environment and feels satisfied with the assessment they receive, creating a positive impact on their levels of commitment to the company.
Employee productivity must be viewed with corporate responsibility and is necessary for any company to increase its efficiency and business opportunities. If you increase the productivity of your employees, your company’s profitability will increase.
Employer paying student loans must take into account aspects such as:
- Continuing education
- The constant innovation of processes
- Open communication
- Good planning
Employers should foster the unitary feeling of workers and motivate them to do their best. Our labor productivity will be diminished if there is a negative work environment, or there are no adequate conditions to develop the work.
5. The attraction of new talents
Having a program of employee benefits and specifically student loan repayment in one of the resources that companies are currently using to strengthen the brand and attract new workers, mainly due to the expectations generated by these corporate policies in the personal and work life of the potential employee.
Another of the great challenges of a company is to get a worker, in line with our values and business culture, to become a talent multiplier agent by referring to us as a workable alternative.
6. Employee benefits program: positive impact
Companies must adopt the employee benefits program in order to achieve corporate well-being. Each worker looks for something different, according to their lifestyle and profession. Therefore, businesses and SMEs must take into account the increasing diversity of their employees and adapt these policies to reach different profiles.
Compensation programs should take into account segments that are in frank growth: families with minor children, single and young workers, divorced or married for the second time. No worker should be left out of the organization in these benefits.