Why Some Workers Are Choosing Housing and Student Loan Benefits Over a Retirement Plan

In today's competitive job market, companies are going above and beyond to attract and retain top talent. One trend that is gaining popularity is offering non-traditional benefits to employees, such as housing assistance, student loan repayments, and commuting support. These unconventional perks are becoming increasingly important as workers and companies navigate the challenges of the rising cost of living.

Rethinking Job Benefits in the Face of the Cost-of-Living Crisis

Recent surveys have revealed a shift in employee preferences towards non-traditional benefits like housing assistance and commuting help over more traditional perks like extra vacation time. Companies are acknowledging this shift and are getting creative with their benefits packages to meet the evolving needs of their workforce.

John Newcome, a vice president at Kelly Benefits, notes that employees are seeking a holistic approach to benefits that goes beyond the basics like medical coverage. They are looking for benefits that address their overall well-being, including work-life balance, mental health support, and financial guidance.

The Rise of Housing Assistance as a Key Benefit

One of the most direct forms of non-traditional benefits is housing assistance. Companies are exploring various ways to support their employees in homeownership, from rental assistance to down payment programs. Some companies even go as far as offering loans to help employees secure housing at lower interest rates or sharing ownership of a house with them.

For example, Walmart assists qualified employees with buying or refinancing homes by helping with the process and covering part of the closing costs. Elon Musk's Boring company is taking it a step further by planning to build a subdivision for employees near Austin, Texas, offering homes at below-market rates with lease-to-own options.

Student Loan Repayment Assistance and Other Emerging Benefits

Aside from housing assistance, companies are also exploring other non-traditional perks to meet immediate needs. These include family planning benefits, mental health support, and even pet insurance. Student loan repayment assistance is gaining popularity, with some companies offering it as an alternative to retirement contributions.

Employers are finding innovative ways to provide student loan assistance, such as making matching contributions to employees' student loans each month. This approach allows employees to prioritize student debt repayment without sacrificing retirement savings.

Considering the Downsides of Non-Traditional Benefits

While non-traditional benefits can be appealing, there are potential downsides to consider. Employees need to weigh the immediate benefits against long-term financial security, especially when it comes to retirement savings. Accepting perks like health insurance supplements may also impact take-home pay due to added costs.

Remote Work and the Role of Non-Traditional Benefits

As companies look to bring remote workers back to the office, non-traditional benefits can play a crucial role in enticing employees. Surveys have shown that housing benefits and commuting assistance are key factors that could influence employees' decisions to return to the office.

Offering housing assistance or paid commuting options can make the prospect of returning to the office more appealing for remote workers. Companies that adapt their benefits packages to meet the changing needs of the workforce are likely to attract and retain top talent in today's competitive job market.

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By: cgaines@insider.com (Cork Gaines)
Title: Why Some Workers Are Choosing Housing and Student Loan Benefits Over a Retirement Plan
Sourced From: www.businessinsider.com/non-traditional-job-benefits-perks-housing-commute-student-loan-family-2024-4
Published Date: Tue, 23 Apr 2024 10:03:01 +0000