Student loans

A hotel chain attracts new employees by paying off their student loans

The hotel chain Postillion has implemented a new strategy to attract workers to the tight labor market in the Netherlands. The hotel chain will help employees pay off student debt. For each hour worked, Postillion will donate 2.50 euros to DUO, the agency that manages student loans, AD reports.

Erik-Jan Gijnaar, managing director of the hotel chain of eight establishments, asked the students of the hotel school in Maastricht to make recommendations to improve secondary employment conditions at Postillion. “They made it clear that the 18-26 age group is very concerned about their student debt,” he told the newspaper. “It makes it harder to get a mortgage for a house, for example.”

Therefore, Postillion concluded that student loan repayment assistance could be an attractive condition of employment. About 15 employees are already using the program, Gijnaar said. “In case of full-time employment, we reimburse 5,000 euros per year. We transfer it directly to DUO, indicating the employee’s citizen registration number. We don’t want to use this as a disguised pay raise.

Postillion is also working on better terms for employees without student debt. “We are reviewing pension plans for them again,” Ginjaar said.

The hotel chain currently employs around 325 people and is looking for another 50 employees across the company.