20th January 2016
If you found out that one of your employees was going to sell an organ to pay off their student debt what would you do?
I’m sure most would offer counsel to understand how they’ve reached that decision but shockingly one in three graduates have indicated that they would consider doing it.
Part of the issue surrounds student debt communication, and post graduate employees not knowing enough about how much they owe and their commitment to repay.
Over 33% of the UK population now has some form of student debt, and three quarters of graduates will reach their fifties and still owe money.
What duty do you have as an employer?
Employers have a big part to play when it comes to student debt, both from a legal but also a moral standpoint. From a legal side of course payroll teams will have to take monies owed directly from employee salaries via PAYE, so getting that right is important. However it goes much deeper from a moral and motivational standpoint.
Some of your graduate employees may well worry about the debt they owe due to ignorance of what’s involved in the repayment process. They may be unaware of the nature of the debt, how their repayments change as they earn more, and when they either finish repaying or have the debt written off. A good employer will ensure this sort of information and support is freely available.
Good communication is key
Providing support will build trust and loyalty, and may help with employee retention. IRIS FMP Payroll Services have produced a handy infographic that explains everything your employees need to know, available here.