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New Ideas for Business Recruitment

Have you been noticing that your recruitment strategy may be somewhat behind the times? Still using traditional ways to fill your vacancies, such as newspaper ads, college recruiting, job fairs, and the same old job board? Although these recruiting channels will produce some hires, there are much more effective ways to find the best talent for your company. Here are some recruitment strategies that you might want to consider going forward. 

 

Improve Your Employer Brand

Your employer branding is your business’s reputation as a place to work. It’s the way your company is perceived by your employees, not your customers. This is perhaps the most important element to consider if you want to attract, hire, and retain great talent. First-class employer branding is not easy to achieve because it requires significant investments of both time and money in your employees. However, it’s important to realize that today’s job seekers are not just looking for high salaries. They want a stimulating work environment and a great company culture. 

 

Make Use of Data

There is a business maxim that says you can’t manage what you don’t measure – and when it comes to recruiting, there’s a lot to measure, including: candidate response rate; application completion rate; qualified candidate rate; time to hire; cost of hire; and more. Using these metrics, you can learn what’s going well and what needs to be improved. 

 

Ditch CV Hiring

It takes a lot of time to read through hundreds of resumes and cover letters, and many applicants will have inflated their qualifications and experience. Instead, make it super easy for a candidate to apply online and then give them a short skills test or a series of tests. Software is available that will automatically pre-qualify candidates as they apply via the test. 

 

Use Niche Job Boards

You have to sink your recruiting line into the right pond to catch good fish. Niche job boards specialize in specific fields. You’ll get fewer candidates than with larger, more general websites, but the candidates may be better qualified for your niche job. 

 

Encourage an Employee Referral Program

Instead of searching through hundreds of applicants via job boards, you can recruit your own employees to do some searching for you. A referred employee is often a better quality hire because the person who has referred them has a good understanding of what qualities are needed to fill the vacancy. You should offer a reward if an employee brings someone great to your team. This incentive could be in the form of cash or extra days off.

 

  • Host a Meetup – Another way to involve your current employees in the recruiting process is to host a meetup or get involved in a networking event that’s already been organized. Send out some representatives from your company and let them spread the good word about working for you. Include some free merchandise to give out to attendees. 

 

Don’t Overlook Passive Candidates

If you don’t hire a top candidate quickly, they will be gone from the job market fast as another company snaps them up. However, the good news is that there is no shortage of passive candidates (i.e., people who aren’t actively looking for a new job). According to research, 85% of global employees would be happy to change their position for a better opportunity. Your mission as a recruiter is to get into your target audience’s line of sight via whatever means possible. 

 

Reach Out to Previous Employees

Rehiring someone who has worked for you before may be a good idea. A prior employee may be the perfect candidate for a different role or a new role higher up the ladder. Look for past employees who have acquired new skills and gained work experience while working for other companies. You can benefit from the training and experience gained while they were away.

 

Don’t Forget the Perks

Although perks might not be top of the list for someone considering the employer branding of your company, perks do show that you care about your employees. Here are a few suggestions.

 

  • Raising salaries once or twice a year when goals are met.
  • Offering a significant number of paid vacation days.
  • Opportunities to work remotely from home.
  • Provision of a free laptop to take home. 
  • Offering retreats every year. 
  • Payment for gym or other sports club memberships.
  • Reimbursement for new glasses or contact lenses. 
  • Free e-books on any work-related subject. 
  • Bring your dog to work day.

 

ELFI for Business Program

Our innovative program can help your company recruit and retain top talent. One feature of this program is a student loan solution for your employees. A high level of student debt is a big concern for young professionals. In fact, an ASA survey found that 86% of them are prepared to commit to a company for five years in return for some assistance in paying off their student loans. Click here for more information. 

 

Improved recruitment practices lead to better quality hires, shorter time to hire, shorter onboarding, lower turnover rates, and less recruiting expenses. Contact us to learn more on how we can help you recruit and retain employees through the ELFI for Business Program!

 

 

NOTICE: Third Party Web Sites

Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.

What’s So Great About an ELFI Personal Loan Advisor?

Personal loans to refinance student loan debt are becoming increasingly popular among college graduates. These loans often come with a fixed amount of time to pay them back. This means that if you’re in your twenties and just starting out on your career path, you want to be sure that your monthly loan payments are affordable. You also need to be aware that missing a payment could seriously damage your credit rating. So, doing the math where interest is concerned is incredibly important. Weighing all the refinancing options available to you can be difficult on your own, which is why working with one of ELFI’s Personal Loan Advisors (PLAs) is the best way to go. The appointment of a PLA is a unique feature of ELFI’s services. Your dedicated PLA can advise you on the following:

 

Your Student Loan Refinancing Term

Loan terms refer to how long the lender requires you to repay your debt. Most lenders offer student loan refinancing terms of five, seven, ten, fifteen, and twenty years. It can be tough to know which term is the right one for your situation, and selecting the most suitable term is important because your choice will determine how much you pay each month, as well as the total cost to you over the life of your loan. What’s more, you will be unable to change your repayment term unless you opt to refinance your loan once more at some point in the future. The bottom line here is that the term you choose is the one you’ll have to live with, so get the best advice before finalizing the deal.

 

The Impact of a Short-Term Loan on Your Financial Situation

If paying off your loan over five or seven years sounds appealing since you’ll be out of debt faster, you need to understand how picking a short term option could impact your debt in a few important ways.

 

You might get an awesomely low interest rate, because refinancing providers tend to match up the lowest rates with the shortest terms. While this isn’t guaranteed, your PLA can determine whether you qualify for the best available rate. A lower interest rate equates to a less expensive loan, and the faster you repay your debt, the less time the loan has to accumulate interest.

  • Example: You owe $30,000 at a 5.0% rate. If you pay it off over 15 years, you will pay $12,703 in interest. But if you pay it off over just five years, you’d only pay $3,968 in interest. (You can crunch the numbers for your own situation by using ELFI’s Student Loan Refinancing Calculator.)

However, there is a flip side to this. Paying back your loan faster means you’ll pay less interest, but you will also have higher monthly payments. Let’s return to the above example – your monthly bill on a 15-year term would be $237, but on a five-year term it would be $566. So, you need to be sure that you can cope with a higher monthly payment now and for the foreseeable future.

 

The Pros and Cons of Long-Term Refinancing

A longer repayment term of ten, fifteen, or twenty years will mean lower monthly payments. This could be a big help if you’re not yet in a high earnings bracket and are on a tight budget. However, you can always make additional or bigger payments to speed up repayment if you start making more money in the future.

 

A longer term generally comes with a slightly higher interest rate and will cost you more in interest over the years. However, choosing a longer payoff will provide you with some breathing space as you begin to establish yourself in your career. What’s more, the availability of more monthly income means the ability to use that money for other financial purposes, such as investing or building up an emergency fund.

 

Let Your ELFI Personal Loan Advisor Help you Choose

There’s no one-size-fits-all solution for student loan refinancing. You are a unique person with individual circumstances and needs. A refinancing plan could save you thousands of dollars, but it needs to be the right plan for you. One of our PLAs will be dedicated to you from the moment you apply and will work with you each step of the way to ensure your ELFI refinanced loan is the optimal fit for you. Your PLA will be your main point of contact at all times, so you won’t be given a random advisor every time you call to discuss. They’ll get to know you, your situation, and work to find a solution that fits you while walking you through the entire process. Our PLAs are always available by phone, text, or email and will make sure all documents are submitted in a timely manner. So give us a call and let’s get the ball rolling!

 

Learn More About Student Loan Refinancing With ELFI

 

Terms and conditions apply. Subject to credit approval.

How Does Student Loan Interest Work?

When you take out a student loan, you will not just be paying back the amount you borrowed – the lender will also charge you interest. The easiest way to think of interest is that it’s the cost paid by you to borrow money. Whether you take out a private student loan or a federal student loan, you will be charged interest on your loan until it is repaid in full. So, when you have finished paying off your loan, you will have paid back the original sum you borrowed (your original principal), plus you will have paid a percentage of the amount you owed (interest). Properly understanding the way that student loan interest affects your loan is imperative for you to be able to manage your debt effectively.

 

The Promissory Note

When a student loan is issued, the borrower agrees to the terms of the loan by signing a document called a promissory note. These terms include:

  • Disbursement date: The date the funds are issued to you and interest begins to accrue.
  • Amount borrowed: The total dollar amount borrowed on the loan.
  • Interest rate: How much the loan will cost you.
  • How interest accrues: Interest may be charged on a daily or monthly basis.
  • First payment date: The date when you are expected to make your first loan payment.
  • Payment schedule: When you are required to make payment and how many payments you have to make.

 

How Different Types of Student Loans are Affected by Interest Rates

  • Government-Subsidized loan: If you are the recipient of a government-subsidized direct loan, the government will pay your interest while you are in school. This means that your loan balance will not increase. After graduation, the interest becomes your responsibility.
  • Parent PLUS Loan: There are no government-subsidized loans for parents, and regular repayments are scheduled to begin 60 days after the loan is disbursed.
  • Unsubsidized Loan: The majority of students will have unsubsidized loans where interest is charged from day one. If you have this type of loan, sometimes a lender will not require you to make payments while you are still in school. However, the interest will accrue, and when you graduate you’ll find yourself with a loan balance higher than the one you started with. This is known as capitalization. 

Here’s an example: In your freshman year, you borrow $7,000 at 3.85%. By the time you graduate in four years, this will have grown to $8,078 – an increase of $1,078. Here’s the math: 7,000 × 0.0385 × 4 = $1,078 (Click here for ELFI’s handy accrued interest calculator.)

 

How is Student Loan Interest Calculated?

When you begin to make loan payments, the amount you pay is made up of the amount you borrowed (the principal) and interest payments. When you make a payment, interest is paid first. The remainder of your payment is applied to your principal balance and reduces it. 

 

Let’s suppose you borrow $10,000 with a 7% annual interest rate and a 10-year term. Using ELFI’s helpful loan payment calculator, we can estimate your monthly payment at $116 and the interest you will pay over the life of the loan at $3,933. Here’s how to determine how much of your monthly payment of $116 is made up of interest.

 

1. Calculate your daily interest rate (also known as your interest rate factor). Divide your interest rate by 365 (the number of days in the year).

 

.07/365 = 0.00019, or 0.019%

 

 

2. Calculate the amount of interest your loan accrues each day. Multiply your outstanding loan balance by your daily interest rate.

 

$10,000 x 0.00019 = $1.90

 

3. Calculate your monthly interest payment. Multiply the dollar amount of your daily interest by the number of days since your last payment.

 

$1.90 x 30 = $57

 

How is Student Loan Interest Applied?

As you continue to make payments on your student loan, your principal and the amount of accrued interest will decrease. Lower interest charges means that a larger portion of your payments will be applied to your principal. Paying down the principal on a loan is known as amortization.

 

How Accrued Interest Impacts Your Student Loan Payments

The smart money approach is avoiding capitalized interest building up on your loan while you are in school. This is because choosing not to pay interest while in school means you will owe a lot more when you come out. The more you borrow, the longer you are in school, and the higher your interest rates are, the more profound the impact of capitalization will be.

 

How to Find the Best Student Loan

When looking for the best student loan, you naturally want the lowest interest rate available. With a lower interest rate, the same monthly payment pays down more of your loan principal and you will be out of debt more quickly. Talk to ELFI about our private student loan offerings by giving us a call today!

 

Learn More About ELFI Student Loans

 

Terms and conditions apply. Subject to credit approval.

 

NOTICE: Third Party Web Sites

Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.