Driving deeper employee engagement with
student loan benefits

With a workforce of more than 40,000 associates across its corporate offices, retail stores, and distribution centers, American Eagle Outfitters, Inc. (AEO) strives to offer benefits that create meaningful impact at scale.

“We recognize that our workforce’s needs are continuously evolving, so we’re continuously looking for ways to keep up with those needs — and even get ahead of them,” says Josh Zorich, Total Rewards Analyst at AEO. “Of course, we were aware that student debt is an issue at most companies in the US. But because our median employee age group is mid- to late-twenties, we realized that an especially large portion of our associates are impacted by student debt. Because of that alignment, we were confident that this benefit would make an impact, and therefore be a good investment for the company.”

It didn’t take long for that prediction to come true: the benefit was an instant hit among AEO associates, especially among those that qualify for the retailer’s monthly student loan repayment contribution offering.

“Eligible associates jump to sign up as soon as they hear about it,” Josh says of the repayment contributions, which are offered to full-time associates who have completed at least two years of service to the company.

“It’s not uncommon for folks to start reaching out to me in the months leading up to their employment anniversary to make sure they’re set up to get enrolled as soon as they pass that threshold — they’re just that excited about the contributions,” Josh says.  “We’ve been able to use that proactivity and excitement to drive engagement with the core Candidly platform too, since all associates are eligible for that offering, regardless of how long they’ve been with the company,” he adds. “Across the board, the feedback we’re getting is overwhelmingly positive and appreciative.”

AEO associates’ enthusiastic response to Candidly is a promising sign for the company’s retention and recruitment efforts, Josh says. “Our associates recognize that most employers aren’t offering this type of benefit yet, and that really helps set us apart.”

For Jen Simpson, enrolling in her employer’s student loan repayment contribution benefit was a no-brainer. “I signed up as soon as the benefit became available. Any free money I can get to help with my student loans, I’m absolutely jumping on that opportunity.”

Jen says that the combination of AEO’s monthly contribution and the tools offered in the Candidly platform has helped optimize her repayment strategy — especially when it comes to finding a balance between prioritizing higher-interest loans and chipping away at her overall balance.

“I have student loans from multiple lenders, so being able to get a full picture of all of my loans and interest rates in one place helps me figure out which loans I want to target first,” Jen says. “The employer contribution helps me make faster progress on my repayment, and the rest of the Candidly platform helps me understand how much extra payments will save me in interest in the long run, even if it’s just an extra ten dollars a month.”