By Jeff Oldham

Recent college graduates across the country are grappling with how to pay their rent, bills and, most crippling, the massive amount of student debt they’ve accumulated over the last four or more years. And it’s not just students that are saddled with college debt – it’s also the parents and guardians that put them through school.

Student loan debt continues to rise in the U.S. and now surpasses credit card debt. In fact, 44 million Americans hold $1.31 trillion in student loan debt, compared to the $779 billion in outstanding credit card balances (Federal Reserve Bank of New York). Those students, on average, hold over $35,000 in student loan debt, and much of it is “seriously delinquent” ($31 billion) or “newly delinquent” ($32.6 billion), meaning the debt is at least 30 days past its due date. Those are some sobering statistics to say the least. Left unchecked, the increasing amount of debt and the inability to pay it off will soon affect nearly every aspect of consumer finances.

It’s going to take a concerted effort to address this crisis.

Luckily for recent grads and parents, more employers are taking an active role in helping to pay down this debt. They are luring the best and brightest with promises of financial wellness benefits that reward tenure by paying down portions of student debt and assist in other realms of personal finance. In fact, Memphis just became the first major U.S. city to offer student loan repayment benefits for all full-time city workers.

It’s a brilliant strategy, as it not only helps attract talent. It also improves productivity in the workplace. According to a new report by the Center for Financial Services Innovation (CFSI), 85% of Americans are anxious about their financial situation, and their anxiety interferes with work. We’ve all been there, and we usually don’t like to talk about it. But for these newly minted grads, it’s the elephant in the room.

Financial wellness is a segment of benefits progressive employers are leaning into. And, in the future, it’s an area that will help employers differentiate and compete for the next generation of workers.

This extends beyond student loan repayments, though that’s receiving the most attention today and is the top benefit our customers and employers ask us about. There is a proliferation of benefits being offered, and these include income protection benefits like accident, critical illness and hospital indemnity and digital health benefits like telemedicine, in addition to more varied financial wellness benefits. In fact, the average employer on our platform now offers 15 types of benefits, and 20% of large employers offer at least 20 types.

By providing more than the average and diversifying their offerings, employers can give employees more choices and more protection, especially as Consumer-Driven Health Plans (CDHPs) become the norm and employees foot more of the bill. This proliferation of benefits is what will ultimately give employers the edge they need to recruit and retain employees.

Equally important, employers must educate their workforce on just how much they’re investing in them. Health care benefits account for at least 30% of headcount spend, and with the additional benefits offered this number will only increase. With wages relatively flat and health care costs rising, it may make the difference between signing on a new employee – and keeping them.