Erasing debt concept with a pencil and eraser eliminating the icon for owing money in credit cards or car payments and mortgages and managing a solution out of bankrupcy and into financial success.

Article taken from the LeadingAge Workforce Website

Challenge:
Jan Roth, Vice-President of Talent Resources at Christian Living Communities (CLC) always has sought a variety of ways to assist and retain her current team members. CLC is a learning organization that prides itself on a comprehensive orientation and training program, along with numerous other benefits. As such, helping team members pay off their student debt was well aligned with the organization’s value of promoting from within, distinguishing the organization in a difficult labor market and “putting more money in their team member’s pockets.”

Solution:
Roth created the “Team Member Student Reduction Program” in 2017, which allows current team members to apply for student debt repayment dollars through CLC.

Implementation Details:
Per the detailed memo, students who apply for debt repayment must do the following:

  • Work at least 24 hours per week and be an active employee.
  • Complete an application for funds
  • Provide evidence of debt and proof of payment
  • May not be a CLC scholarship recipient in the last 3 years (from date of application)
  • Must be in good standing (no record of a second written warning in the last 6 months)
  • Must have worked for CLC for at least 6 months

Note that Department Directors, Associate Executive Directors, Executive Directors and C Suite are not eligible for the program at this time.

The program pays the team member up to $100 per month over 12 months, and the lifetime award is $1,200. 

Factors for Success:

  • User-friendly application and payment process
  • Reimbursing team member through paycheck reimbursement and requiring proof of payment to vendor every month
  • Ongoing, frequent marketing of the benefit

Outcomes for 2017 and 2018:

  • CLC launched the program in late 2016 with 16 team members receiving funds through year-end 2018. Retention of those who have received funds over the 2-year period is 63% in 2017 and 100% in 2018 for an average retention rate of 81%
  • CLC spent $11,867 over the two-year period, far less than they would have spent for recruitment

Their next step is to offer the benefit to their Mid-Level Managers and Directors, who have heavy amounts of student debt. Practically speaking, this benefit was only possible because CLC was able to fund their scholarship benefit (a different program) through resident donations, thereby freeing those operational dollars. 

Need more information?
Contact Jan Roth at 720 974 3510 or jroth@clcmail.org

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