High employee turnover in the service industries—particularly food service—traditionally made it difficult to offer 401(k)s to employees, something SECURE 2.0 is looking to change.
The student loan match program and financial wellness initiatives are generally receiving a lot of attention, mainly due to the former’s introduction in 2024, which is designed to help with the latter.
One major corporation, Chipotle Mexican Grill, needs help with what it calls “burrito season,” its busiest period annually, running from March through May. It’s also looking for more employees to reach its domestic goal of operating 7,000 stores.
The company, which currently employs 110,000 workers, wants to add 19,000 more by offering financial wellness and mental well-being support through a new Employee Assistance Program and enhanced benefits to target Gen Z, which accounts for 73% of its workforce.
The benefits are designed to help employees:
- Pay off student debt while saving for retirement: Utilizing SoFi’s Student Loan Verification (SLV) service, once an employee becomes eligible for Chipotle’s 401(k) plan match, the company will match up to 4% of an employee’s salary through contributions to their 401(k) if they make eligible student loan payments. The benefit solution, launched in response to Congress’ approval of the Securing a Strong Retirement Act (SECURE 2.0), “allows employees who qualify to no longer have to choose between paying off student debt or saving for retirement—they can do both,” according to the company.
- Build credit through high-tech banking: Chipotle employees will have access to Cred.ai, featuring a high-tech Visa card that offers security features, faster access to paychecks, and Cred.ai’s “Credit Optimizer,” which Chipotle said helps build and boost credit scores automatically, even for employees who already have good credit.
- Manage their financial wellness: Chipotle’s partnership with SoFi will also give employees access to the SoFi at Work Dashboard, a leading financial well-being education platform, which includes an assessment of the current financial outlook, followed by suggestions and tools to improve.
- Access mental health resources: Chipotle’s New Employee Assistance Program (EAP), SupportLinc, part of CuraLinc Healthcare, includes six free sessions with a licensed counselor or mental health.
“Empowering our talent is embedded in our company’s culture,” Ilene Eskenazi, Chief Human Resources Officer with Chipotle, said in a statement. “As we push toward our long-term goal of operating 7,000 restaurants in North America, it’s crucial that we listen to and adapt to the needs of our team members so they can grow with us.”
