Other benefits to help employees manage debt include:

Student loan repayment assistance: The same Northwestern Mutual study on debt also found that 17% of Gen Z and 10% of millennials cited personal education loans as their top source of debt. To help combat this financial stressor, employers can offer student loan repayment assistance through either direct repayment or discretionary programs. Direct repayment programs allow employers to put a set amount of cash payments directly toward an employee's student loans. A discretionary program allows employees to spend benefit dollars each year on wellness benefits or extra vacation days – or in this case, toward student loan repayments.
Matching contributions: Like a retirement plan, employers can match a percentage of their employees' debt repayment contributions to incentivize employees to allocate more of their income toward paying off debt.
Flexible work arrangements: For smaller companies that might not have the funding to offer direct assistance with employees' debt, implementing flexible work hours or work locations are low-cost ways to help employees save money on commuting costs. This flexibility is also beneficial for employees who may need to work multiple jobs to help pay off debt.

#2: Don't just provide employees with the tools, teach them how to use them

Even if employers offer a comprehensive financial wellness package, some employees may not reap the full benefits of such a program. It's one thing for employers to offer the benefits, but it's another thing entirely to take proactive steps to make sure their employees know how to use them – another thing that can set employers apart.

Instant Insights /

Stuck in debt: 3 steps employers can take to help employees achieve financial freedom

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