It's no secret that the cost of a college education continues to climb. In 1963, the annual cost of tuition at a 4-year public school was $243 ($2,482 when adjusted for inflation). Today's in-state tuition averages $9,750 annually, while out-of-state tuition is almost 3x higher. But the rising cost of pursuing higher education is beyond financial—it can affect students’ mental health long past graduation.

I’ve seen firsthand how Gen Z is particularly impacted by these stressors in the workplace. Your employees—especially young professionals—are likely struggling with the impact of student debt; in fact, one study reported that 54% of Americans have experienced mental health issues due to student loan debt. But there are ways businesses can help. Your support isn’t just good for your team, it’s good for your business: 73% of “financially stressed” employees said they would be attracted to another employer that cares more about their financial well-being.

Helping your employees navigate their student debt has the potential to increase retention and even bolster your recruitment.

Assess your entry-level salaries and encourage advancement.

The average monthly student loan payment is $200-$299—likely a substantial percentage of an entry-level salary. I recommend regularly assessing your entry-level salaries and determining if your business is keeping pace with market changes. Making sure that recent graduates can meet their basic financial needs is key to smoothing their transition from college to the workforce, leading to greater employee satisfaction and loyalty.

Equally important, investing in training and upskilling can help young career professionals picture their opportunities for advancement. Providing this kind of early support for young professionals is an investment that can pay huge dividends. It can increase employees’ investment in the business and build goodwill toward the organization, a huge advantage when they begin stepping into leadership roles.

I saw this personally before I sold my marketing agency in 2018. Our talent acquisition strategy focused on entry-level professionals, spent a ton of time on broad skills training and ultimately became the basis for the training that now empowers thousands of learners and employers through our company. When they were given the actionable support needed to thrive, these employees made incredible contributions to the company.

Cultivate financial literacy for your employees.

In a PwC survey, more than half of employees who worried about their finances said they spent at least three hours or more during their work week dealing with their personal finance issues or thinking about them. “Financially stressed” employees were also twice as likely to look for a new job.

You can support the financial wellness of your employees by:

• Sharing online resources, such as informational links or loan payoff calculators

• Offering on-the-job educational programs to improve financial literacy

• Connecting your employees to services like student loan planning or debt counseling

• Fostering a culture of participation and encouraging employees to support each other

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