Organizations are seeking new ways to attract and retain employees during what some economists and human resource experts are calling “The Great Resignation.” People are leaving their current jobs in record numbers in search of better compensation and a more flexible work/life balance.
One way that companies can stand out is by offering unique and meaningful benefits to employees. An avenue to consider is a financial wellness program, which helps reduce financial-related stress for employees while enhancing the organization’s benefits package.
A well-rounded financial wellness program includes offering tips and tools related to education savings. When it comes to solving the student debt crisis, the pressure is on. Nearly 43 million Americans, or 1 in 8 people, have federal student loan debt, according to the U.S. Department of Education. Student loan debt can postpone life milestones, such as buying a home or starting a family. The stress of being in debt may also get in the way of productivity at the office. It’s a trillion-dollar problem but incorporating education savings into a financial wellness program can offer a portion of the solution.
Select an education savings program
A 529 plan is a tax-advantaged education savings tool that can help families of various means prevent or minimize future student debt. Many 529 plans offer free education – in person or virtually – to employers and their employees on the benefits of higher education savings.
The largest provider of 529 plans, Virginia529, offers its free Virginia529@work service to help organizations empower their employees in reaching and achieving their financial goals. The service has been adopted by large and small organizations alike, and the response has been overwhelmingly positive.
“We believe in the importance of a well-rounded financial wellness program, which is one of the reasons we provide employees the opportunity to learn about savings for higher education,” said Ana Agud, manager of work/life programs at Virginia Tech. “Our employees know this is an important topic and truly appreciate that we schedule education sessions for them.”
For organizations interested in adding an education savings program to their employee benefits package, here are a few simple steps to consider:
Set your organization’s goals
Document the goals you are trying to achieve along with the measurable ways you can gauge effectiveness. Is the primary goal savings awareness? Helping reduce employee stress?
“We want employers to understand why education savings is important. We want to make sure they are picturing the long-term results for their employees,” said Jackie Ferrado, community relations manager at WA529.
“This is a benefit for the future, not in the moment – and it’s a continuous work in progress. We work closely with human resources organizations to connect with HR teams. We try to present the program as a package that will help families understand 529s – from new parents to grandparents – whatever season their family is in.”
Connect with the 529 program employer contact
Some 529 programs have dedicated contacts who can serve as a resource for the employer. For Tami Foster, employer program director at CollegeInvest in Colorado, managing relationships with her HR contacts is key.
“There is not enough talk about the importance of 529s. We have 900+ employers that we work with across the state. Everyone is stressed about saving for education, and we break down the information into bite-size pieces.”
In Colorado, for every dollar an employer contributes to an employee’s CollegeInvest529 account, the employer receives a 20 percent tax credit, up to a maximum of $500 per employee per year. An employer could give up to $2,500 per employee and receive a $500 tax credit for each person.
“We offer two options: providing education to employers to share with employees on where to start with education savings, or the next level, how employers can contribute to employee 529 accounts – either route can help improve employee well-being,” Foster said.
Spread the word
Make it known to current and potential employees that your organization cares about individual financial wellness by offering a 529 session, including details in your internal communication, or updating your benefits package. For Shontelle Rivers, who manages work life/wellness programs at TSA, this has been critical:
“Virginia529 college savings webinars and presentations have been exceptional. The information provided to us has inspired and empowered our workforce to save for continued education, no matter the paygrade. There’s a proposed savings plan for everyone on every level, no matter where you are in continuing your education and career planning.”
Plan for the future
How do you envision your organization’s education savings efforts evolving in the future? Be creative and repetitive and find different ways to share the information with employees at different stages in their lives.
“We use brochures for our new hires and all expectant mothers get a savings brochure. During the pandemic, we have adopted and hosted webinars for all employees,” said Rita Jensen-Jaouhari, director of benefits & HRIS and assistant director of human resources at Virginia Hospital Center.
“Our contact at Virginia529 provides customized support for our program. We have promotional materials to post on our employee portal for all employees to access and we schedule a blend of communications, on-site education sessions, benefits fairs and webinars.”
When employers step up to support education savings, it helps the organization, the employee, and the community by lessening the burden of debt and empowering individuals to achieve their financial goals.
Merrill Milani joined Virginia529 in 2019 as a Relationship Marketing Strategist. In this role, she is responsible for building partnerships with employers, who want to educate their employees about saving for higher education and offer Virginia529 as a financial wellness benefit. Milani has her B.A. in Psychology from the University of California, Irvine, and her M.B.A. with a Marketing concentration from San Francisco State University.
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Chris Graham
