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Retaining our Talented College and University Graduates in New Hampshire
For New Hampshire businesses and organizations, recruiting and retaining young, educated, and skilled workers is a challenging and expensive process. At the same time, college graduates in the state are faced with the second highest student debt load on average in the country.
The new Stay Work Play Incentive Program
addresses these needs directly by having employers contribute up to $8,000 to pay down federal college loans of newly hired graduates over the first four years of employment. In a recent survey of 1,500 NH college graduates who have student loans from the NH Higher Education Assistance Foundation, 85% said they would be interested in a loan forgiveness program to repay a portion of student debt in exchange for working in NH. New graduates - defined as those who have graduated within the past 36 months - will see this as a major benefit to staying in New Hampshire. The phased in approach is designed to enhance worker retention for employers, reducing their overall hiring and training costs.
The Stay Work Play Incentive Program is a major component of the 55% Initiative, a statewide effort led by the University System of New Hampshire to encourage more new college graduates to stay in state. In the fall of 2008, the incentive program concept was endorsed by the New Hampshire High Technology Council Board of Directors and the Governor's Task Force on the Retention of Young Workers.
This effort was unveiled publicly in early 2009 so it could gain some visibility with organizations that have an interest in offering this unique and powerful recruiting and retention benefit. Participating organizations must agree in writing to meet minimum standards of the incentive program, which are outlined below. An online form is available. The program would be implemented in conjunction with the launch of a new 'Stay Work Play' website that provides substantial information to college students, graduates and young professionals about the benefits of launching a career in NH and living in the state. Organizations that sign up for the retention program will be recognized on this website.
Besides having one of the highest student debt loads nationally, about 75% of NH graduates carry debt loads upon graduation. This effort can make an impact on student college debt in New Hampshire. If in four years, there are 75 participating organizations providing incentives to an average of three individuals and these employees remain with their organization for three years on average, a total of $1.26M would be awarded to pay down student debt.
The criteria for participation are as follows:
- The program is open to any company that employs individuals working
primarily in New Hampshire in an entry-level position (this is defined
as one for which students that have graduated within the last 36 months
would typically be eligible for).
- Those eligible to receive an incentive must have earned a two-year or
four-year degree from a NH college or university within the past 36
months and must have signed up for this program with a participating
employer.
- The incentive awards would be worth $8,000 and would be phased in
over a period of four years and meet the minimum dollar value per year
as outlined below (participating organizations have the option to make
awards above these totals):
Completion of Year 1: 20% of the total or $1,600
Completion of Year 2: 40% of the total or $3,200
Completion of Year 3: 70% of the total or $5,600
Completion of Year 4: 100% of the total or $8,000
- Payments would be made directly to the college loan provider for federal student loan (more information on the payment process and tax issues will be available online). Participating organizations are welcome and encouraged to provide benefits of a similar value to employees who have no debt or graduated from an out-of-state college, and to exceed the criteria cited above. However, additional efforts are not required to be part of the incentive program.
- The goal of the incentive awards is to reduce the student loan debt of the participants, retain more of our newly educated workers, and promote quality work opportunities with New Hampshire employers. This level of debt can help drive some students out of the state, and such an incentive could have a significant impact on that decision.
- Organizations that agree to participate in the incentive program will receive significant promotion and visibility as a result of their involvement. This includes but is not limited to direct promotion as part of the 55% Initiative, acknowledgement as participants on the planned website, direct links to the organization from the web site, visibility at special events and job fairs at colleges and universities, and use of a special highly recognized logo that identifies your organization as a participant.
- Participating organizations would report the number of employees that are taking advantage of the incentive, their annual retention rate, and the dollar value of the incentives paid out on an annual basis. Beginning in January 2011, this information would be reported in the aggregate as part of an annual campaign designed to demonstrate overall impact.
For more information, please contact Matt Cookson, associate vice chancellor for external relations at the University System of NH at matt.cookson@usnh.edu or at 603-862-0904.
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