Marmot Benefits
Deirdre Getty

Deirdre Getty

Sep 25, 2024

With Debt Relief Benefits, ROI Beats Cost Every Time

Employer Solutions

With Debt Relief Benefits, ROI Beats Cost Every Time

Employee Benefits are much more than a big ticket item that employers need to accept. Instead, they can be a powerful statement about how the organization views and values its employees. Smart organizations use employee benefits to their advantage, so the results are mutually beneficial. Their secret: They focus on their return on investment not the cost.

Unless it’s the cost of employee turnover which runs into the billions for Canadian employers. Debt relief benefits can help with that, we have a 98% retention rate with our student loan benefit, three years after enrolment.

Or maybe it’s the cost of employee financial stress which leads to the high cost of lost productivity as employees worry about money and finances. Debt relief benefits save employees thousands of dollars on the cost of their student loans and erase years of monthly student loan payments. It’s a fact.

It could even be the high cost of benefit offerings that no longer serve the best purpose. Debt relief benefits serve all generations in the workforce - from Gen Z with its massive student loan burden to all the other working generations with student loan and/or mortgage woes. A debt relief offering engages about10-15% of a workforce, you can count on it!

By committing to employees’ financial well-being, employers stand to enhance their brand, build trust and create loyalty among their most valuable asset – their employees. For $30 per year per participating employee, employers enjoy returns that far outweigh the price they pay.

A Closer Look at the Numbers

  • This is the Plan Sponsor Cost to run a student loan repayment program in a 100-person company with 12 employees participating:

    • Active Participants: 12

    • Annual License Fee: $2,000

    • Annual User Fees: $360

    • Total Annual Cost: $2,360

  • To arrive at and measure the ROI, we use common assumptions:

    • Voluntary turnover rate: 15.5%

    • Potential employees leaving: 15

    • Average salary of departing employees: $60,000

    • Number of employees who stay for debt relief benefits: 1

  • Calculating ROI: Retention is a complex issue. Yet we know from studies and Marmot’s own client/user data, that student loan benefits have proven to retain employees longer. Based on our conservative estimation that one employee would stay for the debt relief and savings, here is the calculation to determine employer ROI for the benefit.

    • ROI: savings divided by the total annual cost

    • ROI: $15,000 ÷ $2,360 ×100

    • Plan Sponsor ROI: 635.59%

  • Analyzing the Returns: Debt relief benefits are a cost savings, creating incredible rates of return for plan sponsors who offer them and leading to both tangible and intangible benefits for the organization.

    • Debt relief benefits save our customers money

    • Debt relief benefits save our users money and time

    • Debt relief benefits create better outcomes for employers and employees.

  • Make the Investment:

    • Reach out to Marmot Benefits to explore how debt relief benefits can produce better outcomes for your clients, their employees and ultimately your business

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