Recruiting Employees With Student Loan Debt Assistance

The video discusses the growing student debt crisis, highlighting that it stands at $1.5 trillion. Companies like Abbott Labs are offering benefits by matching student loan payments with 401(k) contributions. This approach helps attract educated employees burdened with debt. The video explores tax implications, noting that contributions to 401(k) plans are not subject to income tax, making them attractive. It also examines how economic conditions affect these benefits and the challenges of removing them once implemented. The adoption of such programs varies across industries, with hospitality and financial services being more receptive. The video concludes by discussing how these benefits can support diversity hiring by attracting graduates from less prestigious universities.

What is the main benefit of Abbott Labs' approach to matching student loan payments with 401(k) contributions?

• It increases the employee's salary.

• It is not subject to income or employment taxes.

• It provides free health care benefits.

• It reduces the total student loan amount.

Why might companies hesitate to implement student loan benefit programs?

• They are not popular among employees.

• They are too expensive to maintain.

• They require extensive training for employees.

• They are difficult to remove once established.

How do student loan benefit programs potentially affect diversity hiring?

• They widen the pool by attracting diverse candidates.

• They favor graduates from elite universities.

• They discourage applications from minority groups.

• They limit the pool of candidates.

Which industry has shown surprising receptiveness to student loan benefit programs?

• Manufacturing

• Education

• Hospitality

• Retail

What role do specialized companies and websites play in the adoption of student loan benefit programs?

• They offer payroll and HR support for program implementation.

• They fund the programs directly.

• They provide financial support to employees.

• They replace traditional employee benefits.