NEW YORK, May 1, 2018 /PRNewswire/ -- Financial technology company CommonBond today released the results of one of the most comprehensive employee financial wellness benefits studies to date. This research revealed the extent to which student debt affects employees' financial wellness, as well as how companies are meeting – or not meeting – the financial wellness needs of their employees.
The study included over 1,500 workers across five industries, in addition to more than 500 human resources executives. By comparing the perspectives of these groups, this research reveals the effects of student loan debt in the workplace, and how human resources teams can improve the financial wellness of their employees. Its key findings include:
- Student debt cuts across all age groups, including parents who are taking out loans for their children. Almost 75 percent of all workers have taken out loans to fund their own education, while 21 percent of workers expect to take out a loan for a child or other family member's education in the next five years. This debt has a serious impact on well-being: employees with student debt were nearly twice as likely to be stressed about their personal finances.
- Human resources executives prioritize benefits for employees without student debt. For employees with student debt, student loan repayment is the most-requested financial wellness benefit; however, human resources teams rank student loan repayment as their third priority.
- Employees do not think their benefits are as innovative as human resources executives believe. Seventy-one percent of human resources executives see their benefits offering as innovative, compared with 50 percent of employees.
- Student loan benefits attract talent, retain employees, and improve work performance. Seventy-eight percent of employees with current or future student loan debt want their employer to offer this benefit, and 65 percent of employees over age 55 in these categories want the same.
"From this study, we've learned that student loan debt affects a much larger proportion of the workforce than previously realized," said Leigh Gross, vice president, partnerships at CommonBond. "Our data also shows that financial wellness programs that feature student loan benefits can increase employee engagement and retention, regardless of age group. From this research, we hope to develop new initiatives that enable human resources executives to offer effective financial wellness benefits, and better engage top talent in this competitive marketplace."
CommonBond is a leader in higher education financing, with its CommonBond for Business™ platform offering the most complete student loan benefits solution for employers. CommonBond for Business includes an industry-first student debt evaluation tool, student loan financing and refinancing, and an employer-led student loan repayment benefit. The company has over 250 CommonBond for Business partners.
To download a white paper of this research, visit http://commonbond.co/the-missing-benefit/whitepaper.
CommonBond is a financial technology company on a mission to give students and graduates more affordable, transparent, and simple ways to pay for higher education. The company offers refinance loans to college graduates, new loans to current students, and a suite of student loan repayment benefits to employees through its CommonBond for Business™ program. By designing a better student loan experience that combines advanced technology with competitive rates and award-winning customer service, CommonBond has funded over $1.5 billion in loans for its tens of thousands of members. CommonBond is also the first and only finance company with a "one-for-one" social mission: for every loan it funds, CommonBond also funds the education of a child in need, through its partnership with Pencils of Promise. For more information, visit www.commonbond.co.