Companies may be inclined to shy away from helping employees with debt management, seeing it as an unnecessary risk. But it's a risk Kristen Carlisle believes can create real rewards.
As the general manager of financial benefit provider Betterment at Work, Carlisle is using technology to reach employees and help them get a handle on their finances, most recently with the 2022 launch of a student loan management platform.
Carlisle shared how employers can take a bigger role in their workforce's financial futures, and how she keeps pushing forward in an ever-changing environment.
In an uncertain market, why should employers get involved with employees' financial health?
If you look at the forest through the trees, in a few years these will be the benefits that people demand. Employees with a Betterment 401(k) plan can link their student loan accounts to easily visualize key information, receive personalized recommendations, view repayment projections, and more. Employers can contribute to their employees' loan payments directly, and employees can deduct payments directly from their paychecks.
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President Biden just announced the cancellation of up to $20,000 in student debt for qualifying borrowers. How does this affect your work?
There will still be significant amounts of outstanding debt across the country. A survey we conducted last fall found that 57% of employees believe their employers should play a role in helping them pay down their student debt, whether via direct financial support or digital tools to help guide them through the process.
I anticipate we will see more movement, like tax incentives, to enable employers to offer student loan support benefits, rather than a complete erasure of debt altogether.
What drives you to keep delivering new solutions?
My family, honestly. I have a bevy of nieces and nephews, and I think a lot about the challenges that they may face in the future.
