The Estée Lauder Companies is aiming to retain and recruit top talent by offering a student loan assistance program as part of its employee benefits package.
“We know that student loans are an increasing burden for current and potential talent at The Estée Lauder Companies, and the launch of the Student Loan Contribution Program is an example of how the Company is executing its goal of being the best home for talent—offering benefits that relieve the stresses of everyday life and allow employees to focus on their careers and passions,” said Latricia Parker, Executive Director, Global Benefits, The Estée Lauder Companies.
According to CEW and 24 Seven’s 2017 Beauty Job Market Report, 76 percent of talent said they would like their company to provide tuition reimbursement/paid continuing education, ranking higher than a pension plan (59 percent) and matching 401k (54 percent).
The move will make ELC competitive at attracting talent, especially millennials, as a 2016 study by Citizens Financial Group, Inc. indicated that college graduates under the age of 35 spend 18 percent of their current salaries on student loan payments and 60 percent anticipate that they will be paying off their student loan debt into their 40s. Notably, 65 percent of ELC employees who have taken advantage of the opportunity are millennials (age 35 or below).
To launch the program, the Company has partnered with Tuition.io, a student loan payback platform, and will contribute $100 towards an eligible employee’s student loan every month, with a $10,000 lifetime maximum contribution.
Currently, student loan contribution programs are only offered by 4 percent of U.S. companies and ELC is one of the only luxury companies to offer its employees this type of benefit.