Orlando, Florida, is a dynamic and exciting city with much to offer its residents. From world-famous theme parks and a thriving job market to a diverse culinary scene and ample outdoor activities, there’s something for everyone. However, it’s important to consider factors like the cost of living, traffic, and the need for a car when deciding if Orlando is the right place for you. Not sure if O town is for you? Read on to find out what to expect if you’re considering a move to the Orlando area in 2024.
You know it from: Sisters, Sharknado 3, The Florida Project
Average 1 bedroom rent: $1,779 | Orlando apartments for rent, Orlando houses for rent
Average home price: $409,000 | Orlando homes for sale
Average cost of full-service moving services: $112/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Hospitality and Tourism, Healthcare, Aviation and Aerospace, Information Technology
Move here for: Water sports/recreation, the food scene, the weather
Be sure to bring: A bathing suit and sunglasses
1. Theme parks galore
Orlando is home to some of the most famous theme parks in the world, including Walt Disney World, Universal Studios, and SeaWorld. These parks attract millions of tourists each year, which means residents often have easy access to world-class entertainment and attractions. However, it also means that certain areas can be crowded, especially during peak tourist seasons.
Moving Tip: Locals often take advantage of annual passes and visit during off-peak times to avoid the crowds.
2. Must love thunderstorms, heat, and humidity
Orlando’s climate is characterized by hot, humid summers and mild winters. Summer temperatures often soar into the 90s with high humidity, making air conditioning a necessity. Thunderstorms are frequent in the afternoons during the summer months. On the flip side, winters are pleasantly mild, with temperatures rarely dipping below 50°F. This makes Orlando an ideal place for those who enjoy warm weather year-round.
3. A serious culinary scene
Orlando offers diners an incredible culinary scene, featuring everything from food trucks to fine dining. The city is known for its variety of international cuisines, reflecting its diverse population. Areas like Winter Park and Thornton Park are popular dining destinations, offering everything from trendy cafes to high-end restaurants. The annual Epcot International Food & Wine Festival is a must-visit for food lovers.
4. Growing job market
Orlando’s job market is booming, particularly in the hospitality, healthcare, and technology sectors. Major employers include Walt Disney World, AdventHealth, and Lockheed Martin. The city has also become a hub for tech startups and innovation, with the University of Central Florida fostering a strong talent pool. This growth has led to a competitive job market, with numerous opportunities for career advancement.
5. Cost of living is average but housing can get pricey
The cost of living in Orlando is right around the national average, with housing about 5% higher than the average. Popular neighborhoods like Lake Nona and Baldwin Park can be quite pricey. However, there are more affordable options in areas like College Park and MetroWest. It’s important to budget accordingly and consider commuting options if you choose to live in a more affordable suburb.
6. You probably need a car
Orlando’s public transportation system is not as extensive as in other major cities. The primary mode of public transport is the Lynx bus system, which can be time-consuming and inconvenient for daily commutes. The SunRail commuter train offers limited service but is expanding. Most residents find that owning a car is essential for getting around efficiently.
7. Water sports are a big deal
Orlando offers plenty of opportunities for outdoor activities and sports. Lake Eola Park in downtown Orlando is a popular spot for walking, jogging, and paddle boating. The city’s numerous lakes and parks provide ample space for kayaking, fishing, and picnicking. For those who enjoy golf, Orlando boasts several world-class golf courses.
8. One of the largest universities in the nation is in Orlando
Orlando has a robust education system, with numerous public and private schools rated highly by parents and educational authorities. The University of Central Florida is one of the largest universities in the country and offers a wide range of programs. Valencia College is another well-regarded institution, providing affordable education and transfer pathways to universities.
9. Summer gridlock is a thing
Traffic congestion is a common complaint among Orlando residents, especially during rush hours and tourist seasons. The I-4 corridor is notorious for its traffic jams, and navigating around theme park areas can be frustrating. However, the city is continually working on infrastructure improvements to alleviate some of these issues.
10. Your pets will love it here
Orlando is very pet-friendly, with numerous parks, trails, and even restaurants that welcome pets. Areas like Lake Baldwin Park offer off-leash dog parks where pets can roam freely. Many apartment complexes and rental homes are also accommodating to pet owners, making it easy to find a suitable place for you and your furry friend.
11. The arts and culture scene is top-notch
The arts and culture scene in Orlando is thriving, with numerous theaters, galleries, and music venues. The Dr. Phillips Center for the Performing Arts hosts a variety of performances, from Broadway shows to concerts. The Orlando Museum of Art and the CityArts Factory are great places to explore local and international art. Festivals and events, such as the Orlando Fringe Festival, add to the city’s cultural richness.
Moving Tip: The Orlando Science Center, Gatorland, and the Crayola Experience offer fun and educational experiences for children.
12. So many (nearby) beaches, so little time
Orlando is centrally located, making it easy to access both the Atlantic and Gulf coasts. Popular beach destinations like Cocoa Beach and Clearwater Beach are about an hour’s drive away. This proximity allows residents to enjoy beach outings without the need for long travel times.
13. Quality healthcare is easy to access
Orlando is home to some top-notch healthcare facilities, including AdventHealth Orlando and Orlando Health. These institutions offer a wide range of medical services and are known for their quality care. The presence of these healthcare giants ensures that residents have access to excellent medical attention when needed.
14. Sports enthusiasts rejoice
Orlando is a great city for sports fans, with professional teams like Orlando Magic (NBA) and Orlando City SC (MLS). The city also hosts various sporting events, including the annual Citrus Bowl and PGA Tour events. Kia Center and Inter&Co Stadium are popular venues for catching live sports action.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from The Orlando Real.
Charlotte, North Carolina offers a unique blend of Southern charm, college town energy, and big city sophistication. Known for its thriving job market, mild weather, and growing food scene, Charlotte is an attractive destination for both renters and buyers. Not sure if the Queen City is for you? Read on to find out what to expect if you’re considering a move to the Charlotte area in 2024.
You know it from: Days of Thunder, The Color Purple, The Eyes of Tammy Faye
Average 1 bedroom rent: $1,527 | Charlotte apartments for rent, Charlotte houses for rent
Average home price: $445,000 | Charlotte homes for sale
Average cost of full-service moving services: $112/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Manufacturing, Finance, Tech
Move here for: The job market, big city amenities with a small town feel, outdoor recreation
Be sure to bring: Baseball hat and boat shoes
1. Southern hospitality is a real thing in Charlotte
Charlotte residents are famously friendly and welcoming. Whether you’re at a local brewery, a neighborhood festival, or just walking down Tryon Street, expect to be greeted with smiles and warm conversation. This sense of community extends to neighborhood gatherings and public events, making it easy for newcomers to feel at home quickly. The genuine friendliness of Charlotteans is often cited as one of the city’s most appealing qualities.
2. Mild winters and hot, humid summers
Charlotte enjoys four distinct seasons, with mild winters that rarely see snow and long, hot summers. Spring and fall are particularly pleasant, offering comfortable temperatures perfect for outdoor activities. However, the summer heat can be intense, with temperatures frequently soaring into the 90s and high humidity levels.
Moving Tip: Beat the summer heat by embracing the local custom of escaping to the mountains or nearby lakes. Check out Salem Lake near Winston-Salem or the quaint town of Sylva. If you’re feeling fancy, Highlands and Cashiers are also popular.
3. Rapidly growing job market
Charlotte is a major financial and banking hub, home to Bank of America and the east coast operations of Wells Fargo. The city’s economy is diverse, with opportunities in finance, tech, healthcare, and energy sectors. This growth has spurred a high demand for skilled professionals, making Charlotte an attractive destination for job seekers. The low unemployment rate and competitive salaries add to the city’s appeal for career-driven individuals.
4. Diverse neighborhoods with unique charm
From the historic charm of Dilworth to the urban vibe of Uptown, Charlotte’s neighborhoods offer something for everyone. NoDa (North Davidson) is known for its artsy feel and vibrant nightlife, while South End boasts trendy eateries and the popular Rail Trail. Each neighborhood has its own distinct personality, making it easy to find a community that fits your lifestyle. Exploring these areas is a great way to discover what makes Charlotte special.
5. The craft beer scene is booming
Charlotte has a thriving craft beer scene, with over 30 breweries scattered throughout the city. Popular spots like Olde Mecklenburg Brewery, NoDa Brewing Company, and Sycamore Brewing attract locals and visitors alike. Beer enthusiasts will enjoy the variety of local brews and the lively social scene at these breweries. Many offer tours, events, and food trucks, creating a perfect atmosphere for casual outings.
6. Excellent outdoor recreation opportunities
With the U.S. National Whitewater Center, Lake Norman, and numerous parks, Charlotte offers plenty of outdoor activities. The Whitewater Center provides everything from whitewater rafting to rock climbing and mountain biking. Freedom Park and Romare Bearden Park are ideal for picnics, sports, and community events. These green spaces are perfect for those who enjoy an active lifestyle and connecting with nature.
Moving Tip: One of the perks of living in Charlotte is its convenient location. The Blue Ridge Mountains are just a few hours to the west, perfect for weekend getaways and outdoor adventures. To the east, the Carolina coast offers beautiful beaches and seaside towns. This accessibility makes it easy to enjoy diverse landscapes without long travel times.
7. Traffic can be challenging
The city’s rapid growth has led to significant traffic congestion, especially during rush hours. Main arteries like I-77 and I-85 can become bottlenecks, making commutes longer than expected. Charlotteans often strategize their travel times to avoid peak congestion. While public transportation is available, it’s not as extensive as in larger cities, so having a car is often necessary.
8. From collard greens to fine cuisine
Charlotte’s culinary scene is diverse and delicious, offering everything from Southern comfort food to international cuisine. Popular dining spots include Kindred in Davidson, Optimist Hall, and Haberdish in NoDa. The city’s food truck culture is also thriving, with weekly events like Food Truck Friday showcasing a variety of options. Foodies will appreciate the constantly evolving restaurant landscape and the emphasis on local ingredients.
Moving Tip: If you’re new to the region, we urge you to try Cheerwine, the polarizing soda that is either beloved or bemoaned by NC denizens.
9. Cost of living is relatively affordable
Compared to other major cities, Charlotte’s cost of living is quite reasonable. Housing costs, while rising, are still 10% below the national average. Utilities, groceries, and healthcare also tend to be less expensive. This affordability makes it possible to enjoy a higher quality of life without breaking the bank.
10. Strong education options
Charlotte offers a range of educational opportunities, from highly-rated public schools to prestigious private institutions. The city is also home to several colleges and universities, including UNC Charlotte and Davidson College. These institutions provide quality education and contribute to the city’s vibrant intellectual community.
11. The arts are a big part Charlotte’s culture
The arts are alive in Charlotte, with numerous galleries, theaters, and museums. The Mint Museum, Bechtler Museum of Modern Art, and Blumenthal Performing Arts Center are just a few highlights. The city also hosts events like the Charlotte Film Festival and Charlotte Symphony performances. Culture enthusiasts will find plenty to explore and enjoy in Charlotte’s dynamic arts scene.
12. Sports fans will feel right at home
Charlotte is a sports town, home to the NFL’s Carolina Panthers, the NBA’s Charlotte Hornets, and the NASCAR Hall of Fame. Bank of America Stadium and Spectrum Center host exciting games and events throughout the year. Whether you’re a football, basketball, or motorsports fan, Charlotte offers plenty of opportunities to cheer on your favorite teams.
13. Vibrant nightlife and entertainment
From lively bars and clubs in Uptown to cozy music venues in NoDa, Charlotte’s nightlife has something for everyone. The Music Factory and Epicentre are popular destinations for concerts and entertainment. The city’s vibrant social scene ensures there’s always something happening, making it easy to find fun and excitement after the sun goes down.
14. A green city with plenty of parks
Charlotte boasts an abundance of green spaces and parks, perfect for outdoor enthusiasts. Freedom Park, Romare Bearden Park, and the U.S. National Whitewater Center offer a variety of recreational activities. These spaces provide a welcome respite from urban life and are popular spots for picnics, sports, and relaxation. The city’s commitment to green spaces makes it easy to enjoy nature without leaving the city.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Charlotte Alliance.
As a city with deep roots in tradition and a dynamic spirit, New Orleans provides an experience unlike any other place in the United States. Famous for its vibrant music scene, world-class cuisine, and distinctive architecture, the city attracts people looking for a unique cultural experience. Not sure if the big easy is for you? Read on to find out what to expect if you’re considering moving to the New Orleans area in 2024.
You know it from: Bad Lieutenant, A Streetcar Named Desire, The Big Easy
Average 1 bedroom rent: $1,709 | New Orleans apartments for rent, New Orleans houses for rent
Average home price: $369,000 | New Orleans homes for sale
Average cost of full-service moving services: $140/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Oil & gas, tourism, logistics, aerospace manufacturing
Move here for: The food, the people, the music
Be sure to bring: Your appetite and social skills
1. The weather is a mixed bag of heat, humidity, and occasional hurricanes.
New Orleans experiences a subtropical climate, meaning hot, humid summers and mild, short winters. The city also faces an annual hurricane season from June to November, with the potential for severe storms. New residents should be prepared for high humidity levels, which can make summer temperatures feel oppressive. It’s important to have a plan for hurricane preparedness, including evacuation routes and emergency supplies. Despite the weather challenges, many find the year-round warmth preferable to colder climates.
Moving Tip: Scheduling your move in the spring, fall, or winter months will make it less sweaty. If your new home doesn’t have central air, you will need to invest in an air conditioner and moisture control solution.
2. The food scene is legendary for good reason.
New Orleans is renowned for its unique culinary offerings, from beignets at Café du Monde to po’ boys and gumbo at local favorites like Domilise’s. The city’s food reflects a blend of Creole, Cajun, and international influences, making it a paradise for food lovers. Weekly farmers markets, such as the Crescent City Farmers Market, provide fresh, local produce and seafood. Dining out is a social activity, with festivals like the New Orleans Wine & Food Experience celebrating the city’s gastronomy. The unique local cuisine and wide array of amazing restaurants make food one of the best parts of living in New Orleans.
3. Music is the heartbeat of New Orleans.
Live music can be found almost every night of the week, with iconic venues like Preservation Hall and Tipitina’s leading the way. Street performers add to the lively atmosphere, especially in areas like the French Quarter and Frenchmen Street. Festivals such as the New Orleans Jazz & Heritage Festival draw crowds from around the world. Whether you’re a musician or a music lover, the city offers endless opportunities to experience and enjoy live performances.
4. Public transportation is limited but biking and walking are popular.
While New Orleans has a public transportation system, including buses and the historic streetcars, it can be unreliable and limited in coverage. With a TransitScore of 44/100, many residents find biking or walking to be more practical, especially in neighborhoods like the Marigny and the Garden District. The city’s flat terrain and relatively compact size make cycling a viable option, and there are bike lanes on many major streets. Programs like Blue Bikes provide easy access to rental bicycles. Walking is also common, with many neighborhoods designed to be pedestrian-friendly.
Moving Tip: Some residents choose not to have a car in New Orleans because the weather is temperate year round, street parking is difficult in some neighborhoods, and insurance can be pricey. If you do have a car, follow the parking laws; if they threaten to tow they mean it.
5. Mardi Gras is a season of celebrations leading up to Fat Tuesday.
Mardi Gras is an epic celebration that takes over the city for weeks on end. The festivities include elaborate parades, balls, and parties, with krewes like Zulu and Bacchus hosting some of the most famous events. Residents often participate by joining krewes or attending multiple events, and many take time off work to fully enjoy the season. The city becomes a colorful, lively place filled with music, costumes, and revelry. For newcomers, experiencing Mardi Gras is a rite of passage and an unforgettable part of living in New Orleans. Just wear close-toed shoes. Trust us.
6. The job market is varied but can be competitive.
New Orleans has a varied job market, with strong sectors in tourism, healthcare, education, and the oil and gas industry. Major employers include Ochsner Health System, Tulane University, and Entergy Corporation. However, competition for jobs can be stiff, and it may take time to find the right opportunity. Networking is crucial, and many jobs are filled through personal connections. The city also has a growing tech and entrepreneurial scene, with initiatives like The Idea Village supporting startups. While opportunities are available, job seekers should be prepared to put in effort to secure employment.
7. The people are hands down the best thing about New Orleans.
Ask any NOLA resident and they’ll tell you that the best thing about this city is the people. New Orleanians are known for their deep sense of pride in the city and they love sharing it with newcomers. It won’t be long before you start to feel the same way about your new home. Neighborhoods often have tight-knit communities, with residents actively participating in local events and supporting local businesses. Areas like Bywater and Mid-City are known for their strong community vibes. The city’s festivals, second lines, and block parties foster a sense of belonging and connectedness. Get to know your neighbors. They can give you insight into how to navigate the best and the worst parts of life in NOLA. Newcomers will find that becoming involved in community activities is a great way to meet people and feel at home.
Moving Tip: New Orleanians are known for their friendliness and hospitality. Learn the local customs, social norms, and unique lingo. Expect to greet the people you pass on the street and hear things like “Where y’at?” instead of “How are you?”
8. The architecture is stunning and historically significant.
New Orleans boasts a rich architectural heritage, with a mix of French, Spanish, Creole, and American styles. The French Quarter is famous for its wrought-iron balconies and colorful buildings, while the Garden District features grand mansions and oak-lined streets. Preservation efforts ensure that historic buildings are maintained, contributing to the city’s unique charm. Walking tours and events like the PRC’s Shotgun House Tour offer opportunities to explore and learn about the architecture. Living in New Orleans means being surrounded by beautiful, historic structures that add character to everyday life.
9. The cost of living is relatively affordable.
Compared to other major U.S. cities, New Orleans offers a more affordable cost of living. Housing costs can vary widely depending on the neighborhood, with areas like the French Quarter and Uptown being more expensive, while Mid-City and Algiers offer more budget-friendly options. Utilities, groceries, and healthcare are generally in line with the national average. The city also provides numerous free or low-cost entertainment options, such as public festivals and parks like Audubon Park and City Park. Overall, residents find that their money goes further in New Orleans compared to many other metropolitan areas.
Moving Tip: The cost of living can vary significantly depending on the neighborhood. Research housing costs, utilities, and other expenses to budget effectively. Renting initially can be a good way to get a feel for the city before committing to buying property.
10. The city has a laid-back and casual vibe.
New Orleans is known for its relaxed and easy-going atmosphere. Dress codes are generally casual, and people often greet strangers with a smile. The city’s pace is slower compared to many other urban areas, allowing residents to savor life’s moments. This laid-back attitude extends to dining, shopping, and socializing, making it a great place for those who appreciate a more relaxed lifestyle. Local traditions like lazy Sundays with jazz brunches at Commander’s Palace contribute to this easy-going vibe.
11. There are numerous parks and outdoor spaces.
New Orleans offers plenty of green spaces for recreation and relaxation. City Park is a massive urban park with walking trails, botanical gardens, and a sculpture garden. Audubon Park, located in Uptown, features a zoo, golf course, and scenic picnic areas. The Lafitte Greenway provides a multi-use trail connecting Mid-City to the French Quarter. These parks are perfect for outdoor activities like jogging, biking, and picnicking. The abundance of outdoor spaces contributes to a healthy and active lifestyle for residents.
12. The city’s festivals are world-famous and frequent.
New Orleans hosts numerous festivals throughout the year, celebrating everything from music and food to culture and history. In addition to Mardi Gras, there’s the New Orleans Jazz & Heritage Festival and the French Quarter Festival. Smaller festivals, like the Po-Boy Festival and the Oyster Festival, focus on local cuisine and traditions. These events offer endless entertainment and are a great way to experience the city’s vibrant culture. For residents, there’s always something to look forward to on the festival calendar.
13. Charter schools are a big part of the K-12 education landscape.
New Orleans offers a range of educational opportunities, from public and private schools to universities like Tulane and Loyola. However, the public school system has faced challenges, including funding issues and varying quality across schools. Charter schools have become a significant part of the education system, offering alternatives to traditional public schools. Parents often research extensively to find the best fit for their children.
14. Each neighborhood has its own unique vibe and personality.
In a city as chock-full of personality as NOLA, it’s no surprise that each neighborhood has its own distinct character and charm. The Marigny is known for its artsy vibe and vibrant nightlife, while the Bywater offers a bohemian atmosphere with colorful cottages. The Garden District features grand historic homes and lush gardens, whereas Uptown is famous for its oak-lined streets and elegant architecture. Mid-City provides a more laid-back, residential feel with easy access to parks and local eateries. Choosing the right neighborhood depends on your lifestyle and preferences, but there’s a perfect fit for everyone in New Orleans.
15. The sports scene is lively and enthusiastic.
New Orleans residents are passionate about their sports teams, particularly the New Orleans Saints (NFL) and the New Orleans Pelicans (NBA). Game days are major events, with tailgating and watch parties bringing the community together. Ceasar’s Superdome is a landmark venue that hosts not only sports events but also concerts and other large-scale events. The city also has a strong college sports presence, with Tulane University and the University of New Orleans offering various athletic programs. Sports fans will find plenty to cheer about and numerous opportunities to join in the excitement.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from City Data.
In the evolving landscape of employee benefits, HR professionals are increasingly recognizing the importance of supporting their workforce in managing student debt. With the resumption of federal student loan payments last year, the nearing end of the federal on-ramp, and the introduction of innovative matching programs, there’s a pressing need for HR teams to stay informed and proactive. Here’s a closer look at the current state of student loan benefits and how HR can effectively implement these programs to enhance financial wellness in the workplace.
Understanding the Impact of Student Loan Debt
Student loan debt remains a significant burden for millions of Americans, with many employees seeking positions that offer not just a paycheck, but also help in managing this debt. Recent surveys, such as the Employee Benefit Research Institute’s 2022 Financial Wellbeing Survey , indicate that nearly three-quarters of employers are now offering or planning to offer student loan debt assistance or tuition reimbursement programs. This shift underscores the growing recognition that student loan benefits offer significant value — not just for workers but also employers. SoFi at Work’s 2024 Future of Workplace Financial Well-Being study found that employees spend a full 8.2 hours dealing with finances every week while at work.
Analyzing the currently available data from the Department of Education (ED), we found that while total loan forgiveness approved by the Biden-Harris Administration has jumped to $167 billion for 4.75 million borrowers , that still leaves roughly $1.73 trillion in student debt outstanding for 43.2 million borrowers. This means that there are still a significant number of individuals in the workforce and about to enter the workforce who will still be working on paying down their student debt.
This will be particularly felt in a few key talent segments. Older borrowers represent an increasing proportion of borrowers who carry federal student debts, both in terms of the number of borrowers and the amount they owe (14% of borrowers are aged 50-61 and have federal student debt with an average balance of $44.2K). Additionally, among borrowers under 40, first-generation borrowers are about three times more likely to be behind on their payments than borrowers whose parents also attended college.
HR professionals should also be aware of the upcoming end of the federal student loan “on-ramp” period and the grace period for 2024 graduates. Specific to this year, as federal student loan repayments resumed, the ED introduced a temporary “on-ramp” period until September 30, 2024. During this time, borrowers who fail to make payments do not face default. The program was aimed to assist borrowers who might find it challenging to resume payments after the pause of almost four years.
Shortly after the on-ramp ends, most of the graduating class of 2024 (those who tossed their caps in April, May, and June this year) will experience the end of the standard federal loan grace period. Most federal student loan types have a six-month grace period after graduation, leaving school, or dropping below half-time enrollment. This means these employees will likely start their repayment journeys in September, October, and November.
It is shaping up to be a busy Open Enrollment season!
Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support
Legislative Enhancements: The CARES Act and Secure 2.0 Act
The introduction of the CARES Act and the subsequent Secure 2.0 Act has provided HR teams with new tools to support their employees. Under the CARES Act, employers can contribute up to $5,250 annually per employee towards student loans on a tax-exempt basis through 2025. By enhancing Section 127 benefits, this provision not only aids employees but also offers payroll tax exclusions for employers, making it a mutually beneficial arrangement.
Further expanding the horizon, the Secure 2.0 Act, effective from January 2024, introduces the option for employers to match their employees’ student loan payments with contributions to their retirement accounts. Companies like Chipotle and Kimley-Horn have already adopted this innovative approach, allowing employees to address their student debt while enhancing their retirement savings, presenting a win-win scenario for financial wellness.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Implementing Student Loan Repayment Benefits
For HR professionals looking to implement or enhance student loan repayment benefits, several key considerations must be addressed:
Direct Educational Assistance Benefits (Section 127 Provisions)
• Determine the contribution level. While the maximum tax-exempt direct contribution stands at $5,250, companies can start with smaller amounts, such as $25 to $100 per month, which can still significantly reduce the interest burden for employees.
• Consider tenure and eligibility. Some companies may tie these benefits to tenure, requiring a certain period of employment before employees can qualify, which can aid in retention.
• Ensure compliance. While there are still several open questions for the IRS to clarify, it’s crucial to have a program document that complies with IRS regulations and coordinates with any other educational assistance programs offered by the employer.
Recommended: Understanding Educational Assistance Programs: A Comprehensive FAQ
• Understand the timeline for qualified student loan payments. When setting up a qualified student loan match, plan advisers and sponsors must be clear on the timing of when these payments may be reported. This is crucial because the timeline for these matching contributions differs from that of a traditional 401(k) deferral match. Understanding and communicating these timelines can ensure smooth implementation and compliance.
• Don’t exceed matching fund limits. When it comes to the level of matching funds that are available, it’s important to note that contributions that exceed the 402(g) limit, which is the maximum amount of money employees may defer to their 401(k) plan each year, may not be matched. For 2024, this limit is set at $23,000. The traditional 401(k) rule for matching, which allows matching only up to this limit, remains in effect. This ensures that the matching contributions are made within the legal financial thresholds.
By carefully considering these aspects, HR professionals can effectively implement student loan repayment benefits that help employees manage their debt and align with regulatory requirements and fiscal prudence.
The Role of HR in Facilitating Smart Debt Management Without a Formal Program
Beyond implementing direct financial benefits, HR can be pivotal in educating and supporting employees in managing their student debt. If your organization is not yet ready to implement Direct Educational Assistance Benefits or Qualified Student Loan Payment Matching programs, consider starting with providing resources like the SoFi at Work’s Navigating Your Student Debt Workbook and organizing workshops on student loan management. Both offerings can empower employees to make informed decisions about their repayment options.
In addition, the SoFi at Work Guide to the Restart of Federal Student Loan Repayments was developed explicitly to help borrowers reestablish their financial footing after the federal loan pause. This relevant guide provides essential information on smoothly transitioning back into making repayments. Additionally, it includes valuable resources and advice on budgeting, saving, and enhancing financial health overall.
Recommended: The Student Loan Crisis and Its Impact on Borrowers
The Takeaway
As we navigate a landscape where student loan debt remains a critical issue for many workers, the role of HR in facilitating debt management and financial wellness is more important than ever. By leveraging legislative tools and providing educational support, HR professionals can significantly impact their employees’ financial health and, by extension, their overall job satisfaction and loyalty. This proactive approach not only enhances the company’s appeal to top talent but also fosters a supportive workplace culture that recognizes and addresses the real-world challenges its team members face.
Photo credit: iStock/ArLawKa AungTun
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Navigating the complexities of educational assistance programs can be challenging for employers and employees alike. Recent legislation changes have expanded how employers can provide direct and indirect education assistance. Still, the new tax incentives offered by the Secure 2.0 Act and Section 127 can be confusing. While they sound alike, they take different approaches to the same problem.
In this article, we’ll provide a detailed FAQ based on section 127 of the Internal Revenue Code to help you understand how these benefits can be leveraged, whether you’re an employer, employee, or self-employed individual.
What Is an Educational Assistance Program?
An educational assistance program is a plan established by an employer to provide educational benefits to its employees. To qualify under U.S. Code § 127 – Educational Assistance Programs , the plan must be in writing and meet specific requirements. These programs are designed to support employees in furthering their education, covering expenses such as tuition, qualified education loans (as defined in section 221(d)(1) of the Code ), fees, books, and supplies.
Most importantly, these programs have the benefit that they are tax-free, up to $5,250 per calendar year. This means the benefits provided under this threshold are not included in the employee’s gross income nor reported as wages on their Form W-2.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Can Educational Assistance Cover Loan Payments?
Yes, under certain conditions. Payments on principal or interest of qualified education loans are considered educational assistance benefits if made after March 27, 2020, and before January 1, 2026. These payments must be for the employee’s education and not intended for a family member’s education. The total combined limit for these payments and other educational assistance is still $5,250 annually.
This section of the Code is most commonly referred to as the “CARES” provisions of Section 127, as these amendments were part of the broader Coronavirus Aid, Relief, and Economic Security (CARES) Act package. The CARES Act provision was set to expire at the end of December 2020, but Congress passed the Consolidated Appropriations Act before that happened, extending the tax break through the end of 2025.
The IRS discusses what qualifies as an eligible loan in more detail here.
Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support
Are There Restrictions on the Types of Courses Covered?
Per the Code, educational assistance benefits can not cover payments for the following items:
• Meals, lodging, or transportation.
• Tools or supplies (other than textbooks) that you can keep after completing the course of instruction (for example, educational assistance does not include payments for a computer or laptop that you keep).
• Courses involving sports, games, or hobbies unless they:
◦ Have a reasonable relationship with the business of the employer
◦ Are required as part of a degree program
An employer can further define what their program will or will not pay for as long as it meets the other requirements of the provision.
Recommended: Guide to College Tuition Reimbursement
Who Can Benefit From These Programs?
Educational assistance programs are intended for the exclusive benefit of employees. They cannot discriminate in favor of highly compensated employees or disproportionately benefit shareholders or owners. However, self-employed individuals and owners who meet specific criteria can also receive benefits, though not more than 5% of the total benefits provided can go to owners or their families.
Recommended: The Student Loan Crisis and Its Impact on Borrowers
What Happens if Benefits Exceed $5,250?
Suppose educational assistance benefits exceed $5,250 in a given tax year. In that case, the employer must include the excess amount in the employee’s gross income, subject to relevant business and income tax.
Both employers and employees should keep track of these benefits to ensure they are reported correctly. This is especially important for employees who change organizations within a given tax year, as the total assistance they receive can be at most $5,250, regardless of the employer paying it. Additionally, any “unused” amounts of the $5,250 annual limit cannot be carried over by the employer/employee to subsequent years or retroactively applied to previous years of employment.
Can Educational Assistance Be Used for Non-Employees?
Generally, educational assistance benefits are exclusively for employees. Benefits extended to spouses or dependents do not qualify under section 127 and must be included in the employee’s gross income unless they also qualify as employees.
How Do Employers Benefit From Offering These Programs?
Employers can deduct the costs of educational assistance up to the $5,250 limit per employee per year as a business expense. This helps employers support their employees’ pursuit of higher education and skill development while also benefiting from tax incentives. Education assistance initiatives can enhance the workforce’s expertise and knowledge, boost employee morale and productivity, and decrease staff turnover.
Recommended: How Student Loan Benefits Can Help Retain Employees
What Should Employers Include in an Educational Assistance Plan?
An effective educational assistance plan should clearly outline the eligibility criteria, types of benefits provided, conditions for receiving benefits, and procedures for claiming benefits. Employers may customize their plans to include provisions for part-time employees and/or prorate benefits based on employment tenure, or even grades received at course completion.
Here is an example plan document that outlines an Educational Assistance Program. Though it will have to be adapted to your organization’s unique needs and policies, this template can help you meet the written plan requirement.
The Takeaway
Educational assistance programs offer valuable benefits that significantly reduce the financial burden of furthering education. Both employers and employees stand to gain from well-structured programs that align with IRS guidelines. As these programs are subject to specific IRS rules and potential legislative changes, staying informed through reliable sources like IRS publications and updates is crucial for maximizing the benefits while remaining compliant.
For more detailed information or specific scenarios, visit the IRS website . You may also want to consult with a tax professional, who can provide guidance tailored to individual circumstances.
SoFi at Work can also help. We’re experts in the employee education assistance space. With SoFi at work, you can access platforms and information that will help build the benefits needed to create a successful and loyal workforce.
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Discover career growth strategies to boost your income, including negotiating raises and navigating promotions and mentorship.
What are some of the best ways to increase your income?
What are strategies for negotiating a higher salary and excelling in your current role?
Hosts Sean Pyles and Alana Benson discuss career growth techniques and salary negotiation strategies to help you understand how to maximize your earnings and achieve financial stability. They begin with a discussion of the importance of increasing your income rather than solely focusing on cutting expenses, breaking down the long-term financial difference that seemingly small increases in your income can make over the course of your career.
Then, “The Job Doctor” Tessa White joins Alana to discuss how to excel in your current role and position yourself for promotions and raises within an organization. They discuss the necessity of understanding the true expectations of your role, measuring your contributions through tangible metrics and effectively communicating your value to your organization. Additionally, they explore the importance of informal mentorship and how to enhance your skills by observing and learning from those who excel in specific areas.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
You’ve heard it one million times, “Just cut out the daily Starbucks run and you’ll be rich.” But more often than not, your financial situation is going to be better aided by fixing what’s coming into your budget versus what’s going out.
Tessa White:
If you’re, say, 35 years old and you negotiate an extra $5,000 for your job, it’s not just $5,000 because in lifetime earnings, that’s several hundred thousand dollars in lifetime earnings. And if you invested that difference, it’s even more.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Alana Benson:
And I’m Alana Benson.
Sean Pyles:
This episode kicks off our Nerdy deep dive into what we are calling investing in your income. Another way to say that is investing in yourself by seeking out more ways to make more money.
Alana Benson:
Yeah, Sean, you alluded to this at the beginning, but there’s just so much advice out there giving people flack for spending on straight-up normal stuff like going to Starbucks, or getting some tacos at a food truck instead of making them in your kitchen. And yes, technically all of these things can have a negative impact on your bottom line, but like, you have to live.
Sean Pyles:
Absolutely. And I mean, we’ve had a foot in this camp on the show advising people to take a hard look at their expenses and see what they can pare back in an effort to get themselves to a better financial situation. We haven’t told people to forego a morning latte, but there certainly is a time and place for examining your spending habits. That said, there is another way to affect that bottom line.
Alana Benson:
Exactly, and that is to just make more money.
Sean Pyles:
Yes. Okay. So Alana, you pitched this series to us. What prompted you to start thinking about this?
Alana Benson:
I’ve talked about this on here before, but before I started working at NerdWallet, I worked at a small company where I was making less than $30,000 a year with no benefits. So I actually tried to negotiate to $32,500 and I was told that I was “greedy and selfish.”
Sean Pyles:
Wow. The gall you must have had-
Alana Benson:
I know. How dare I?
Sean Pyles:
… to ask for that much more money, yeah.
Alana Benson:
But it messed me up for a long time. And to any listeners who have been told something similar, I want to tell you right now that you are not any of those things. I had to check my bank account every time before I went grocery shopping at that job, and I felt stressed about money all the time. And then when I finally started working at NerdWallet, overnight I went from that stressed out lifestyle to being able to save for retirement and a down payment on a house, which was just like a fever dream before then, and then it was a reality.
Sean Pyles:
Right. Well, we wish everyone could work for NerdWallet, but for those who are looking for other ways to have that kind of income jump, let’s talk about what they need to be considering.
Alana Benson:
Yeah, Sean. And this is not to say that this is easy. These are a little more difficult, they may not happen overnight, but there are some really critical factors that make increasing your income almost imperative if you want to meet particular financial goals. If that’s buying a house, if you’re making a college fund, investing for retirement, these are all the things that you usually do after you fill out your emergency fund, or you pay down high-interest debt and cover your day-to-day expenses. And by those metrics, it just makes it really hard for a lot of people to ever get to the point where they can afford to save and invest for those long-term goals. And for a lot of folks, increasing their income is literally the only way they’re going to be able to afford to invest for retirement.
Sean Pyles:
Right. And increasing your income can also be far more effective than reducing expenses, particularly for those who don’t have many expenses left to cut.
Alana Benson:
Yeah, exactly. So here’s an example. If you’re making $50,000 a year, the money you actually get on your paycheck after taxes, and generally this is without state taxes and everyone’s tax situation is different, but that would come to about $42,000 a year or $3,495 per month. The average monthly mortgage payment in the U.S. is $1,768. Now factor in groceries, bills, car payments, and other necessities, and the truth becomes something that we already know, which is just that life is really expensive and most of us are not making enough to cut it, let alone save for the future, or just make enough to enjoy life and take a vacation every now and then.
Sean Pyles:
Yeah. And the average millennial owes about $6,500 in credit card debt and those in Gen Z owe more than $3,000. Cutting your daily coffee habit and getting rid of streaming services simply cannot make up the differences here. And these numbers aren’t new, but they’re sometimes presented with little information about what we can do about them. Increasing your income is one of the biggest ways you can make a dent in those numbers.
Alana Benson:
Exactly. So over this three-part series, we’re going to talk about how you can get started increasing your income, some concrete steps you can take regardless of whether you want to change jobs or not, and what you can start to do once your income does increase. We’ll be talking about everything from sprucing up your LinkedIn profile to working with a career coach, negotiating, and whether that’s for a raise at your current job or a salary bump at a new one.
Sean Pyles:
All right, well we want to hear what you think too, listeners. To share your thoughts around ways to boost your income, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D, or email a voice memo to [email protected].
So Alana, who are we hearing from today?
Alana Benson:
We are going to the doctor for a checkup, Sean.
Sean Pyles:
Oh, no. What’s the copay going to be?
Alana Benson:
Well, hopefully nothing, because today we are talking with The Job Doctor, also known as Tessa White, who spent a good chunk of her career heading up HR departments, mostly for tech companies. She’s now founder and CEO of The Job Doctor and author of The Unspoken Truths for Career Success.
Sean Pyles:
That’s coming up in a moment. Stay with us.
Alana Benson:
Tessa White, welcome to Smart Money.
Tessa White:
Hello. Thank you for having me.
Alana Benson:
In this series, we are really focusing on ways to increase your income in kind of any form. So what would you say is the easiest way that people can increase their income?
Tessa White:
Well, I think they need to be very mindful that they are their best advocate for making money. The company’s not going to magically go in and decide that they need to pay them more money, because a company’s always going to err on the side of they’ll take as much as you’ll give. So making sure that you’re advocating for yourself is probably the greatest way that you make money.
Alana Benson:
Tessa White:
Yeah, salary negotiation, asking for money, which is uncomfortable for people to do sometimes. Understanding what the value of your role is or the position that you’re applying for versus just kind of going with the first thing that people ask. I mean a little bit of discomfort on the front end of negotiating on behalf of yourself really has a massive impact on the back end.
If you’re, say, 35 years old and you negotiate an extra $5,000 for your job, it’s not just $5,000 because in lifetime earnings, that’s several hundred thousand dollars in lifetime earnings. And if you invested that difference, it’s even more. So you need to look at it a little bit differently and say, “Every penny that I can negotiate on behalf of myself is the new basis for which other offers come in and other raises is based off of.” And it really does have a cumulative effect that’s significant.
Alana Benson:
I want to go back to something that you said about increasing the value where you’re at. Some people may have tried to negotiate or they’ve hit a financial ceiling for some ways, but how can you get extra experience at your existing job? For example, if you want a role in management in the future, maybe take on some mentoring to work towards that. For people who negotiating isn’t really on the table right now, how can people get some of that extra experience?
Tessa White:
First you have to know what to ask for. One of my recommendations is that you mimic a top-performer plan. Companies typically put people in this nine box, and they have these top performers and nobody knows who they are except the top performers. They get all these extra things. Some of those extra things are exposure to experiences which are very valuable to you. That might be sitting in on an executive meeting and just seeing how things operate.
And the thing about corporate America is your manager needs help. There’s always more to do than people to do it. And so if you ask for your own top-performer plan, you can actually ask for and be very direct with your manager to say, “Can I give part of a presentation in this executive team meeting? Can I run this little piece of a project that is holding us back that we need to get over the finish line? Can I sit in and listen to how a meeting operates? Can I help develop a dashboard for our departments so that we can show progression in some of the key objectives?”
So there’s lots of different ways you can do it, but the key is you have to ask because most managers are not really great at putting together growth plans for people. They’ve got a lot of people and it gets very murky what they need. But if you actually go to your manager, and direct it and say, “Can I do this one thing? Can you help make this one thing happen or these two things happen,” then your odds go way up and your credibility goes up in the organization, your visibility goes up. And therefore, your promotability goes up.
Alana Benson:
I love what you said about visibility because I think that is so, so important, especially a lot of people are now working in remote environments and so you don’t really get that face-to-face time. And so what are some ways that people can kind of increase their visibility? Kind of like you said, talking about a presentation, but just ways to get exposure and then how does that value come back to them?
Tessa White:
Well, let’s start with something that I think people might find interesting. I’ve sat in on hundreds of promotion meetings where they decide who gets the promotions that year. And almost without fail it’s like a broken record. The people that don’t get the promotions, people will say, “Well, they sound great, but I don’t know who they are. I haven’t worked with them.”
One of the big keys to getting the promotions is visibility across the organization and being able to collaborate well with other departments. And it’s really important that when people know you, you have a greater chance of getting the promotion, and when you intersect with them. So that’s the first thing is that having that exposure is really important.
One of the first practical things that I would do in a job is to go talk to the people that intersect with my role and say, “Tell me what do you expect out of this role? What are the problems that I am helping solve for you and where are your pain points?” And I would get very, very aligned with what those people and constituents need because the job on paper is not the real job. It never is. And this helps you determine what the real job is and how you win, more importantly, how you align yourself to win. So I would be having those conversations at least twice a year because that’s what’s going to point you towards how you actually work on the things that are going to get you promoted in a company, and how are you going to get visibility for you and what you do.
Alana Benson:
I think about that a lot where I work in terms of even just posting on Slack and making sure that I post regularly in the channels that my boss, and my boss’ boss, and even my boss’ boss’ boss are because that visibility is so important. So they say, “Oh, I know who this person is, I know what they’re working on. I know they’re doing X, Y, and Z.” So what are some other ways to make sure you’re getting that managerial attention that could potentially lead to a raise or a promotion?
Tessa White:
I’m a big believer in planting seeds in an organization with other managers and other places in the organization so that you know what’s coming. Managers are planning six months, eight months in advance, sometimes a year in advance of what they need and what’s coming. And you need to be talking with them about how are you going to be evolving, what are the big problems you’re trying to solve? What are big initiatives and things that are going to help you over the next couple of years move into the next level of efficiency? And when you understand those things, then you get a better idea of how you fit into the ecosystem and you also get a better idea of maybe where you want to go in the future. And then you can begin to craft the kind of experiences that you need so that you will be somebody that they can pay attention to.
I would absolutely treat your company like a big homework assignment. And I would be trying to listen to the quarterly reports, listen to the CEO. What are the big objectives that we’re trying to accomplish? And it helps you establish that narrative. Because I get mad when people come and say, “I interviewed but it didn’t work very good,” or, “I don’t think they understood my value.” And I say, “If you don’t understand your value proposition, I promise you the company won’t.” It really is your job to figure out what your value proposition is, and in order to do that you have to have information.
Alana Benson:
So when you go into those meetings, it’s so hard to kind of know what your value is or what people call your market value. So how do we figure that out? How do you essentially see if there’s space to grow in terms of pay in your existing role? How do you figure out what you should be getting paid?
Tessa White:
Well, that’s a lot of different questions. Let me start with value proposition, first of all. It’s kind of a big word, but how do you know what value you bring to an organization? This is a really hard thing for people. But if you think about leverage, that’s what you want to have as leverage to get what you want. Leverage at its core is “I have what you need.” And so if you can define what is it that I see the company needs, where are they going and what have I done so far that shows I have that skill, and you can then turn it into numbers.
“I was able to come into my department and move the needle on these particular criteria,” then you have more leverage. But what most people do is they say, “I’m really good at working with customers.” Well, that’s, in and of itself, doesn’t mean anything. But if you say, “My customer service scores are 20% higher than most of the other people in the department,” or, “I was able to decrease call time by X and increase customer satisfaction by X,” then you actually have something that the company understands and you’re speaking their language.
So part of your job in determining your value proposition is saying, “How am I solving problems for the company? And then how do I turn what I’ve done into metrics or numbers?” That’s why I tell people, “You should go to work every day and be measuring. If you don’t have a department metric that tells you am I doing good or am I not doing good, figure out what it is and start measuring things. Because those numbers become so critical to how you position yourself for a company.”
Alana Benson:
There’s two things, figuring out what the company kind of needs from you and what you can bring to it, and then obviously what can the company do for you?
Tessa White:
Well, your market value, it’s like a house. When we put a house up for sale, we don’t have some neat, perfect numbers to what its value is. What we know is that other houses sold at this amount that were similar, and the same is true with compensation. What other companies are willing to hire this role at is a pretty good indicator that you can bring that helps determine the value of a role.
But the other thing that you have quite a bit of control over is being able to tell the company, “Here’s how I solved the problems in my last company and here’s how I’ll solve them for you.” So for recruiting, for example, let’s just take a general example. If I said, “I’m a really good recruiter, and I was able to manage a recruiting team and fill 200 positions in a year,” that doesn’t, in and of itself, mean anything. But if I understand that a company has low resources and they don’t have a lot of money to put towards recruiters, I could say, “In the last company, I turned every employee into a recruiter in our company because we didn’t have a lot of funds. And we rolled out this employee referral program that made every employee a recruiter and it increased the number of applicants that we were bringing into the company month over month by 60%.”
Then all of a sudden the company goes, “Scrappy. I need scrappy. I’m a company that doesn’t have a lot of money. I need creativity. Look what that person was able to do.” And all of a sudden your leverage went up, which means your compensation probably goes up because you have what the company needs.
Alana Benson:
Yeah, I think it’s so important to think about what are the problems that need to get solved here? And sort of apply yourself to those, and be moldable, and be able to say, “Yeah, I can help you with that.” I feel like that goes so far and feeds into the visibility thing that we were talking about earlier because then you become known as someone who can fix problems.
Tessa White:
It’s everything because on resumes, again, one of my pet peeves is a resume will say, say you take an HR person and they say, “I’m a 25-year professional who has been able to manage talent management, training and employee relations.” Well, every single resume says that, but the minute that I can tap into how do I solve the problems and I say, “I’m the person that you’d hire if you need to go fast and put in place infrastructure so that you can go public or so that you can have a high merger acquisition strategy,” for example. If I say that, then I’ve just tapped into how to solve a problem that that particular small company needs.
Alana Benson:
So much of this is difficult to do and every company is different. And I think it’s so important to get help and support along the way as you’re trying to not only be better in your role but be making more money. So what can you tell me about how you can use mentorship to further your career and help you increase your income? What can mentorship look like and how do you find a mentor?
Tessa White:
I think every single person needs to have not just a mentor, they need to have a handful of mentors, and it’s available to everybody. What most people, the mistake they make is they think they need to go up to somebody and say, “Will you be my mentor?” When in fact, the best mentorships that I know of are where you identify people who have really good skill sets in an area.
For example, everybody should have a mentor that they can look to for how do you manage people, how do you get conflict over the finish line, and how do you do it in a way that’s productive rather than destructive? Everybody should have a mentor around data and data analytics or presentations and how to give a good presentation or run a meeting. You should identify people who do that well, watch them. You don’t even need to ask, “Will you be my mentor?” Watch them. Watch what they do in that area.
And then for example, before you go give a meeting, say, “I’ve been watching you. You give really good presentations and I’ve tried to use some of the principles I see that you utilize. Will you take a look at this presentation and tell me what you’d change? Can I just give it to you? Spend 10, 15 minutes to run over the high level?” That’s how you have mentors that make a difference for you is you find people that do good things, you watch them very closely, and then you ask them when the time is right to help you make sure you’ve done that thing right. And I think that’s available to everybody. You don’t have to have a company program to do it. You don’t have to have somebody necessarily saying they’ll be your mentor. Just pick people, watch them.
Alana Benson:
So it doesn’t need to be nearly as formal as what a lot of people think of when they think of entering a mentorship relationship? It can be as simple as, “I saw you do this. You’re great at it. Can you help me with this one presentation?”
Tessa White:
Exactly, or this one conflict. “I have a high conflict situation and this is how I was thinking of handling it. How would you do it?” Exactly. I think that’s far more productive.
Alana Benson:
To that point, obviously a mentorship and mentoring relationship is different than working with a career coach, but how can you find a career coach who can maybe help you and how do you navigate that search? There’s obviously a wide spread of what people charge for career coaching services. Are there any certifications that people should look for when it comes to working with a career coach to make sure they’re working with someone who knows their stuff?
Tessa White:
There are plenty of different certifications, but I don’t think that one is necessarily better than another. I think it’s a lot like finding a regular therapist. You need to find somebody that you vibe with. You need to find somebody who’s been around the block and has some experience.
Probably my biggest beef with career coaching as an industry is that a lot of people with five years of career experience are calling themselves a career coach. You need somebody who has seen lots of situations in lots of different circumstances and watched how those situations play out. And I think when you have somebody that has either been in your industry or has been around the block for a while, they’re going to be able to give you a much better idea of the different choices that you have, and more importantly, the likely different outcomes of those scenarios if you handle it different ways. But somebody with five years of experience simply doesn’t have enough experience or enough behind the scenes in really high-stakes situations to be able to give, I think, information that is really, really helpful or useful.
Alana Benson:
And so aside from a lack of experience, is there anything else to kind of look out for in this industry?
Tessa White:
I would find people that know my industry. For instance, tech is a different flavor than blue collar. If I took advice from a career coach that’s a high-tech career coach and I’m in a blue collar environment, that advice is not going to play as well because there’s just different flavors to different industries. So you try and find somebody that’s the best match to the environment that you are working in, I think, and then you make sure that that person has a lot of experience as well.
Alana Benson:
Is there anything that I didn’t ask you about that seems particularly important for people to think about if they’re trying to increase their income in a role that they’re already in?
Tessa White:
I will tell you that there is a trend that I’m seeing that I think is really valuable to understand. There’s a lot of change happening right now, a lot of layoffs and a lot of people leaving companies. But those people who stay through, I call it a red zone of a company, usually have tremendous opportunities that come their way because of the people that leave and the gaps that that creates. And even though it may be an uncomfortable period of time to try and do more with less, learning how to work through red zones of companies is really teaching you to innovate and is teaching resilience. And that skill set is extraordinarily valuable.
People who stay in companies often end up with the increases and the promotions that they want because of the vacancies that are left. And so I would tell people don’t think that the grass is greener just by leaving a company through a red zone. A red zone can be a tremendous gift to you, and particularly people who are okay with taking promotions that are lateral and they learn the ecosystem of a company, that has delayed value. While it may seem like you’re going backwards or standing still if you’re not getting big raises, if you understand the ecosystem of a company by working in different departments, over time that makes you incredibly valuable to a company. And I’m seeing people use that as a career strategy that ends up paying dividends. If you look at it in a long-term, like a four-year horizon, is huge. Even when they leave that company, the ability to understand the different departments and how they work together is something that’s very, very valuable.
So don’t discount the red zone of a company and think, your brain’s going to tell you this is the wrong company, the wrong time, it’s terrible, it feels uncomfortable. But discomfort doesn’t mean you’re in the wrong company, it simply means you have to learn to do things differently. And it really is the trigger for innovation. And if you can stay through that red zone, it can be incredibly valuable to you.
Alana Benson:
Well, Tessa White, aka The Job Doctor, thank you so much for talking with us today and we really appreciate your time.
Tessa White:
Yeah, thank you so much for having me.
Sean Pyles:
Alana, I so love how you and Tessa talked about what I sometimes think of as the theater of the workplace or narrative building around your job. And I don’t mean to be flip or diminish the real work that goes into building any career, but if you aren’t good at presenting the story of your work, building a compelling cast of characters through your colleagues and advocates who support your work, and getting people excited about what you are doing, it’s going to be a lot harder to get those big opportunities in your career. Tessa described it as “planting seeds,” and I kind of think about it as foreshadowing, set building, and fleshing out your narrative arc.
Alana Benson:
Totally. And there’s so much that goes into what we do at work, and how we can grow and eventually make more money. And if you’re looking for inspiration on where exactly to figure out what type of experience you should be getting, try looking at job listings for jobs you’ll eventually want but maybe aren’t qualified for now. That will clue you into where you should start looking. For example, if you’re in a job that doesn’t currently give you management experience but you’re looking to work as a manager in the future, you could give informal mentoring a try.
Sean Pyles:
So try thinking from your future resume’s perspective. Try to think from your future resume’s perspective. What experience do you need to have to check a box on a job openings list and how can you get it now?
Alana Benson:
Yeah. And once you identify what areas you want to get more experience in, there are thousands of online courses you can take for free or for just a small amount of money to exercise those skills. You can learn how to code, you can learn about AI, how to use spreadsheets, and pretty much anything else you can think of. So think about what courses could help you out in your current role or help make the case to give you a promotion.
Sean Pyles:
And this is a great time to look at other roles again and see what particular skills they’re looking for. If you’re looking for jobs in IT support, for example, you can take a Google certification course for that. Some companies even offer financial compensation for furthering your education. So be sure to ask your manager if there are any funds available to help you pay for the education costs.
Alana Benson:
That’s a great call.
Sean Pyles:
So Alana, tell us what’s coming up in episode two of the series.
Alana Benson:
Next up, we are going to hear from an expert from LinkedIn about how to best optimize your profile so you can make the most out of a job search.
Andrew McCaskill:
I think that the number one thing that I would say to folks if you’re trying to make your profile more visible and more searchable is over 40% of recruiters say that they are searching for talent based on skills. And so you really have to put your skills in your summary, and use skills and skills language.
Sean Pyles:
For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-N-E-R-D. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
Alana Benson:
This episode was produced by Tess Vigeland. Sean helped with editing. Kevin Berry helped with fact checking. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Sean Pyles:
Here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Alana Benson:
And with that said, until next time, turn to the Nerd
Victor Ciardelli beamed as his mortgage company, Chicago-based Guaranteed Rate, launched a “financial wellness” and “personal well-being” app last fall before a live audience in Times Square with wellness celebrity Deepak Chopra.
“Something we are passionate about at Guaranteed Rate is caring about people and their overall well-being,” Ciardelli said in a video of the event posted online. “We wanted to make sure that we did something to help people in their general stress and alleviate pain.”
But in the days following the launch of the app, which offers home loan applications and other financial services alongside yoga classes and nutrition advice, Ciardelli wasn’t happy. Yelling at executive leadership on company calls, he referred to his employees as “failures,” complained that the team did not show him from a particular camera angle and said “Marketing is a f−−−ing disaster,” according to two executives who were on the calls.
Despite Ciardelli’s public remarks on the importance of personal well-being, many former employees told the Tribune they experienced or witnessed persistent verbal abuse and a misogynistic environment while working at Guaranteed Rate. As part of a Tribune investigation, reporters interviewed nearly 80 former employees and reviewed court records, internal company emails, written exit interviews and text messages.
Many of the former staff members who spoke with the Tribune described Ciardelli, the company’s president, CEO and founder, as a boss who was quick to berate, swear at and demean employees.
“Every person that works directly under Mr. Ciardelli is terrified of his potential anger outbursts,” one former assistant wrote to human resources after she was let go from the company a couple of years ago, according to an email reviewed by the Tribune.
Some former employees who spoke with the Tribune said they were driven to seek mental health care because of the work environment at the company; one former worker said she contacted a suicide hotline last year.
Multiple women who used to work at Guaranteed Rate, meanwhile, described working in a sexualized atmosphere where some male loan officers and managers made sexually explicit remarks to female employees, hit on them in the office or at work events, and commented inappropriately on their appearance — even, in one case, encouraging a woman to use her looks to help close a loan.
In February, a woman who used to work as a loan officer at Guaranteed Rate filed a lawsuit against two high-producing loan officers at the company, alleging sexual harassment and gender discrimination. Her complaint alleges one of the male loan officers sexually harassed her at a corporate event, that the other loan officer pressured her not to report the incident to human resources, and that for the remainder of her employment the man who made the remark used “gender-based and demeaning slurs to refer to” her and other women at the company.
Other former employees said they did not bring their complaints to human resources because they thought Ciardelli or other executives and managers meddled in the department’s business and might retaliate, with at least two former employees saying they’d observed how company leaders protected certain staff members. Others said they did complain but felt the department didn’t take the information seriously.
In response to a detailed list of questions from the Tribune, Ciardelli and Guaranteed Rate vehemently denied all of these allegations, describing the company as a positive workplace environment where women in particular are supported. The firm went to remarkable lengths to dispute the allegations, including sending the results of a worker satisfaction survey it conducted and forwarding more than 80 testimonials from current and former employees. Among them were five of Ciardelli’s current or former assistants, as well as numerous male and female executives praising his leadership and support.
The company also retained an outside law firm that, even before receiving the reporters’ list of questions, threatened to sue the newspaper for defamation.
Guaranteed Rate, whose corporate headquarters is in Chicago’s North Center neighborhood, has grown tremendously since its founding in 2000 to become one of the largest mortgage lenders in the country based on loan volume, according to industry news and data provider Inside Mortgage Finance. Its name has adorned the White Sox stadium since 2016, and as recently as 2018, Guaranteed Rate was named a Chicago Tribune Top Workplace — a distinction based on surveys conducted by an outside company, with no input from editorial staff on the selection.
Guaranteed Rate CEO Victor Ciardelli prepares to throw out the ceremonial first pitch at a White Sox home game in August 2016. The ballpark would be renamed after his company later that year. (Chris Sweda/Chicago Tribune)
Jason Scott, a former top-producing loan officer and director of VA lending, which provides home loans to military veterans and active-duty service members, at Guaranteed Rate said his earlier years at the company — when lower mortgage rates fueled industry growth — were positive. But Ciardelli’s outbursts and verbal abuse of employees grew more noticeable, he said, when rising interest rates started to erode those gains, especially after the boom years of the COVID-19 pandemic.
“I think crazy success just brings out who the real people are,” said Scott, who reported to Ciardelli in his director role and now works for CrossCountry Mortgage, a competitor of Guaranteed Rate. “What did you sacrifice to get there? Did you sacrifice your soul or your core values?”
Many other former employees who spoke with the Tribune did so on the condition they would not be named in this story, saying they feared Guaranteed Rate would sue them. Guaranteed Rate has filed lawsuits against former employees to claw back signing bonuses; it also has sued competitor New American Funding and former employees who have hired former Guaranteed Rate workers, accusing them of unlawful poaching.
Ciardelli declined to be interviewed without his attorney for this story. In response to written questions provided by the Tribune, he and the company suggested the criticism of Guaranteed Rate came from disgruntled employees who could not succeed in a demanding work environment within a challenging industry, or from people who now work for a competitor and therefore would benefit from disparaging the company.
“We hold ourselves and our team members to an incredibly high standard and are not apologetic about that,” Ciardelli said in his written responses, sent through the outside law firm retained to handle communications with the Tribune. “We also recognize … that to achieve great success, one must embrace a full ownership for their actions, both successful and otherwise to achieve growth and most important optimally serve our customers. We promote a transparent culture that supports all our team members toward that goal and welcome constructive criticism. As a result, we are not for everyone.”
Ciardelli specifically denied berating staff, yelling at executives after the app launch or ever calling employees “stupid” or “failures.” He quoted the company’s chief operating officer, Nik Athanasiou, as saying: “I have worked with Victor for 15 years. No one is in more meetings with him than me. I do not ever recall an instance where Victor was abusive toward another employee.”
Ciardelli also pointed to the company’s anti-discrimination and anti-harassment policies and said neither he nor any other executive interfered with human resources.
In response to questions from the Tribune about women’s complaints, including being subjected to sexually explicit comments and working in a “boys club” atmosphere, Ciardelli wrote that such allegations are “simply not true.” The company “has not, does not, and would not objectify women or put them in uncomfortable personal or professional situations,” he wrote.
Ciardelli also highlighted the large number of female loan officers working at the company, their professional success and the testimonials from female employees. When the Tribune asked to speak with four of those women, only one — Rola Gurrieri, the company’s New Jersey-based chief fulfillment officer — agreed to be interviewed without outside counsel or management present.
Regarding the lawsuit filed by former Guaranteed Rate loan officer Megan McDermott, the company told the Tribune it had “found no evidence supporting Ms. McDermott’s allegations of sexual harassment or gender discrimination” after conducting a “comprehensive investigation.”
Guaranteed Rate also sent a general statement detailing the company’s business philosophy, which includes a “fierce commitment to excellence.” Employees who do not “meet our core values or our quality standards” find it challenging to maintain job satisfaction at the company, it said.
“Many of these employees walk away not feeling good about the company which is a natural emotion when faced with a reality that their standards and the company standards are not aligned,” the statement said.
But many of the former employees who spoke with the Tribune described a cutthroat work culture they said could be frightening and upsetting, with several attributing that culture to Ciardelli’s laser focus on making money and growing Guaranteed Rate.
A sign is installed at the White Sox stadium in October 2016 to proclaim its new name: Guaranteed Rate Field. (Zbigniew Bzdak/Chicago Tribune)
The former assistant who emailed human resources asked not to be identified in this story, fearing it might jeopardize her current job or trigger retaliation from Ciardelli. In that email, the woman wrote that she was “constantly on edge and terrified to have an interaction with Mr. Ciardelli” and that she had “consoled each assistant on his team that endured the wrath of Mr. Ciardelli’s behavior.”
“I hope that my experience will open your eyes,” she wrote.
Flying too close to the sun
In an interview with the Tribune in 2014, Ciardelli made plain his ambition to grow the company.
“If you can’t handle it, you shouldn’t be here,” Ciardelli said. “Instead of feeling like, oh, we care about people’s feelings and all that, it’s all about results.”
In the same article, Ciardelli said he worked constructively with his employees when issues arose at work. “There’s no drama involved; there’s no yelling,” he said. “Let’s fix the issue and move on.”
But multiple former executives and employees told the Tribune Ciardelli regularly yelled at and verbally attacked executives and other employees in person and on company calls, sometimes in front of hundreds of people, with the calls following the app launch just one example.
Some former and current employees told the Tribune they tried to avoid Ciardelli because they were scared of his temper.
Scott, the former director of VA lending who worked at Guaranteed Rate from 2017 until he resigned in 2022, splitting his time between offices in Hawaii and Colorado, called Ciardelli a “bully.”
Scott told the Tribune that, during one call, Ciardelli took an executive “to the woodshed and just eviscerated him verbally,” saying things such as “I can’t believe you are this stupid.”
“(Victor) throws the grenade and then he leaves the room,” not giving people a chance to explain or talk through the issue, Scott said.
At the time of Ciardelli’s 2014 Tribune interview, Guaranteed Rate had 2,500 employees nationally, 1,050 of whom were based in Chicago, according to Tribune archives.
The company grew to employ 9,708 people nationwide at its peak in 2021, Guaranteed Rate told the Tribune in May. Part of the company’s growth stemmed from its acquisitions of other mortgage companies: Manhattan Mortgage and Superior Mortgage in 2012 and Stearns Lending in 2021.
Victor Ciardelli, shown in 2014 at Guaranteed Rate’s headquarters, told the Tribune that year that he had ambitious plans for the company and “if you can’t handle it, you shouldn’t be here.” (Abel Uribe/Chicago Tribune)
Guaranteed Rate also partners on mortgage services with some of the largest real estate companies in the country. Including the people working in those partnerships, Guaranteed Rate had 14,264 employees at its height in 2021.
Like other mortgage companies, Guaranteed Rate has suffered a significant decline in business over the last two years, stemming from mortgage rates that have more than doubled from their record lows during the pandemic.
As mortgage rates soared in 2022 and 2023, the firm implemented thousands of layoffs, with only 3,871 workers remaining as of April, or 5,756 among all its companies, excluding contractors, as of May, according to the company.
Yet Ciardelli’s volatile behavior predated the stressful times in the housing market, according to some people who worked for Guaranteed Rate. Many people who “fly too close to the sun” — a metaphor some employees used to describe working directly with Ciardelli — eventually leave, they said.
People who work in personal and executive assistant roles for Ciardelli rarely last long in their jobs, with many leaving after less than a year, former employees said. Some referred to Ciardelli’s assistant position as a “revolving door,” and the LinkedIn profiles of multiple former assistants show short stints with the company.
More than two dozen executives and senior loan officers have left the company over the last decade, with a significant exodus occurring in the past two years. Multiple former executives and loan officers — including Scott — told the Tribune they left because of Ciardelli’s verbal outbursts and what many described as a workplace where they felt bullying and misogyny were tolerated. Most now work for competitors.
Ciardelli and other executives sometimes would disparage people who left the company, according to Scott.
“I would be like ‘Guys, did anybody ever think about reaching out to them before they left and having an exit interview with them?’” Scott said. “You are talking about a person that was a top producer here that you loved them as long as they produced, and now that they leave, they are an enemy? … They are leaving for a reason.”
In Ciardelli’s written responses to Tribune questions, he said allegations of a toxic work environment or bullying on his part are “not aligned with Guaranteed Rate or my leadership.” He said neither he nor other executives have disparaged former employees when they left the company.
In response to a question about assistant turnover, Ciardelli wrote that he has worked closely with five “primary” assistants since 2000. “As is the case with any demanding support roles, there has been some turnover with secondary and tertiary assistants, but nothing that is abnormal or unexpected,” he wrote.
One testimonial sent to the Tribune was from Melissa Czaszwicz, who said she worked for Ciardelli as an executive assistant in the early 2000s. She wrote that she had a positive experience working closely with Ciardelli, who she said was especially supportive when she had children.
“Never did I witness anything inappropriate or out of line,” said Czaszwicz, who still works at Guaranteed Rate.
‘Mental health has suffered’
Some former employees who spoke with the Tribune said they were driven to seek mental health support during and after their time at the company because of the negative work environment they experienced at Guaranteed Rate.
Most of those who shared their experiences worked for an executive who has a close working relationship with Ciardelli. Former workers said this executive also verbally abused staff and was prone to volatile mood swings.
One told the Tribune she texted and called a suicide hotline last year while working at the company because of verbal abuse from the executive; she shared the texts she sent with the Tribune.
In her resignation email, sent to the executive and to the human resources department last year, she wrote: “My mental health has rapidly declined due to the way I have been treated and spoken to in the last couple of months.”
Another employee from the same team wrote in a 2019 resignation letter sent to the executive, human resources, Ciardelli and others that his “mental health has suffered.”
Founded in 2000, Guaranteed Rate grew to become one of the largest mortgage lenders in the country but has suffered a decline in business as mortgage rates have soared in the last two years. (Brian Cassella/Chicago Tribune)
In the resignation email and in an interview with the Tribune, the former employee said his boss gave him the runaround when he asked for time off to attend his mother’s chemotherapy appointments and complained to other employees about his requests.
Other employees discouraged him from requesting leave directly from human resources, warning him he would be fired if he went around the executive, according to the email.
Alyssa Ortiz, another former employee, said working with this executive was like being in an “abusive” relationship, being yelled at one minute and being invited for drinks the next.
“Everyone has gotten … chewed out and left crying,” said Ortiz, who worked for Guaranteed Rate from 2017 to 2019.
Ortiz told the Tribune that human resources and Ciardelli had been notified of this executive’s verbal mistreatment of employees but did nothing. She and about a dozen other former employees told the Tribune they felt Ciardelli protected this executive because of their working relationship.
In a written exit interview from 2020, one employee from the same department described how the executive would discuss former employees’ exit interviews with current employees.
“This created a fear for us to go to HR for anything moving forward,” the employee wrote.
Ciardelli said the company was not aware of any incident in which an executive read former employees’ exit interviews aloud; he said Guaranteed Rate “would never support this practice.”
Dozens of employees have left the executive’s department since 2017, according to interviews with former workers and LinkedIn profiles. The executive has since been promoted, the executive’s LinkedIn profile and the company’s website show.
In 2018, the head of human resources at the time took away the HR representative working with the executive’s department because of “risks” the executive posed to the company, according to an email reviewed by the Tribune.
“I can’t in good conscience keep allowing (the executive) to drag other employee (sic) into … schemes,” the former HR head wrote. “And by schemes I mean risky bull−−−−.” The department would have no assigned human resources representative after that, according to the email.
In correspondence with the Tribune, Guaranteed Rate described the company as a positive workplace where abuse and harassment are not tolerated and where complaints to human resources are taken seriously.
“We are not perfect by any means, but we do work hard to listen to our employees and make sure they feel supported,” a company spokesperson wrote in an email to the Tribune in April. “Most of all, we have no tolerance for any form of bullying, harassment or mistreatment. It is not who we are or who we want to be.”
Some of the employee testimonials provided by Guaranteed Rate expressed similar sentiments. For example, Mohamed Tawy, a branch manager and senior loan officer who has been with Guaranteed Rate for three years, wrote that the culture at the company is the best he has experienced in his 15-year career.
In an interview with the Tribune, Tawy said: “As a top producer … and I’m also a minority myself, I haven’t felt anything or seen anything that makes this company in any way negative for anybody that’s different. … I’ve seen here all that matters is that you do a good job, your production is good and that you follow the protocols and the rules, and I’ve seen people succeed with that more than any company I’ve been with.”
The Guaranteed Rate spokesperson also shared the results of an employee experience survey conducted in February. According to the company, the average rating for the culture at Guaranteed Rate was 8.49 out of 10, with nearly 75% of 3,745 employees responding. Those ratings were based on employees’ stated level of comfort providing feedback and/or concerns, how much they felt supported by the company in maintaining a healthy work-life balance and their sense of Guaranteed Rate’s commitment to promoting diversity and inclusion.
The email from the spokesperson said the company received “a countless number of positive comments and appreciation for their leaders, teams and our overall culture.”
In response to Tribune questions, Guaranteed Rate said in May that the survey was anonymous and it was analyzed by its “employee experience team.” The company did not provide the Tribune with a complete set of responses from the survey, but it volunteered that employees used the word “toxic” to make a negative comment about Guaranteed Rate in only 14 of the more than 5,000 written responses provided to three open-ended survey questions.
‘Mortified and disgusted’
Megan McDermott, a single mother of three, met her supervisor at Guaranteed Rate, Jon Lamkin, in person for the first time at a corporate event in December 2015, according to the lawsuit she filed in February.
When Lamkin heard the age of her oldest child, the suit alleges, he said: “You should have known better than to let some guy’s d−−− c−−− inside you.”
According to her lawsuit, McDermott reported the comment to Joseph Moschella, a regional manager and senior loan officer at Guaranteed Rate who was responsible for McDermott’s region while she worked at the company. Moschella, the suit alleges, “pressured” her not to make a formal complaint of sexual harassment to human resources.
McDermott told the Tribune she was “mortified and disgusted” after Lamkin made the comment.
“The irony here is that Jon should have known better than to treat an employee the way he did rather than telling me I should have known better to become a single mother at 20 years old,” McDermott said, “which is vile. … He set the tone the first day I met him of the power Joe and Jon had over my career.”
Megan McDermott, shown in March in New Jersey, has filed a lawsuit alleging she was “subjected to a sexual and gender-based hostile work environment” at Guaranteed Rate and did not receive the same opportunities, treatment and pay as male loan officers. (Brian Cassella/Chicago Tribune)
As McDermott went on to become a top-producing loan officer for Guaranteed Rate in New Jersey, her suit alleges Lamkin subjected her to abuse by “regularly screaming at her and using gender-based and demeaning slurs to refer to” her and other women at the company.
Her lawsuit alleges she was “subjected to a sexual and gender-based hostile work environment” by Guaranteed Rate, Lamkin and Moschella. Her suit also alleges McDermott did not receive the same opportunities, treatment and pay as male loan officers, which some other female loan officers told the Tribune reflected their own experiences as well.
McDermott did not lodge a complaint after Lamkin’s comment because she “believed she would be retaliated against” if she did so, the suit states. When she did report to HR around 2019 that Lamkin had engaged in “abusive behavior,” the department “failed to do anything to investigate or curtail Defendant Lamkin’s behavior,” the complaint alleges.
“Joe encouraged me not to go to HR because of the damage it would do to Jon’s career,” McDermott said. “Ultimately, all that they were worried about was Jon, his reputation and his career versus reporting inappropriate behavior.”
Guaranteed Rate told the Tribune in its May response that Lamkin’s comment was “nothing more than a single off-color joke,” that McDermott accepted an apology from Lamkin and that Moschella “encouraged” McDermott to contact human resources if she was “still upset.”
The company said it “could not find any record of Ms. McDermott making any form of complaint to the company’s human resources department in 2019, either verbally or in writing.”
McDermott told the Tribune she helped build Guaranteed Rate’s business in north Jersey from the ground up and said she loved the work until she found out she was not being treated equally as a woman.
“I believe management did not want to see me succeed, didn’t take me seriously and made decisions that negatively affected me and my children financially,” said McDermott, who now works for CrossCountry Mortgage, a competitor. “I ultimately left GR because I could no longer work in an environment where I was not valued and leadership felt that they could exploit me.”
Moschella and Lamkin are still employed at Guaranteed Rate. They did not respond to a Tribune request for comment. Guaranteed Rate told the Tribune in May that it had investigated McDermott’s allegations of sexual harassment and gender discrimination and found that “there is no evidence that Mr. Lamkin or anyone else at Guaranteed Rate ever created a hostile work environment for women.”
Guaranteed Rate also said in a statement that it complies with state and federal equal pay laws. The company said an “outside law firm” had reviewed its 2023 pay data and found it compliant with state equal pay laws.
In his written responses, Ciardelli highlighted the high percentage of female loan officers at the company in comparison to its competitors and said “our women originators thrive more than at any mortgage company in the industry.”
Employee statements provided through Guaranteed Rate’s attorneys included testimonials from dozens of women. Some noted the existence of the company’s employee resource group for women, GROW, while others cited the presence of women in leadership roles throughout the company.
“In addition to my professional growth I’ve experienced, I am equally grateful for the respect and dignity with which I have been treated as a woman in the workplace,” Jaime Kinman, a senior loan officer, said in her statement. “In an industry where gender biases still exist, I have never once felt marginalized or overlooked because of my gender.”
Gurrieri, the company’s chief fulfillment officer, said in an interview with the Tribune that she “never one time” experienced misogyny at the company.
“I got promoted when I’m six months pregnant,” she said. “That’s unheard of.”
Gurrieri, who has worked for Guaranteed Rate for more than six years, described Ciardelli’s leadership style as “extremely passionate.”
“There’s never been a day where I ever felt disrespected or not appreciated,” she said.
According to a former top executive who reported to Ciardelli for many years and a former human resources employee, a handful of loan officers at Guaranteed Rate were known sexual harassers, making women feel uncomfortable with inappropriate touching and unwanted advances in work settings.
But that behavior was rarely addressed, the former workers believed, because the men were friends with Ciardelli or were high-producing loan officers — each responsible for bringing in tens of millions of dollars in loan volume. Some of these loan officers still work at Guaranteed Rate.
Ciardelli called these allegations “simply not true” and said they were contradicted by the employee testimonials provided through the company’s attorney.
“They are also inconsistent with the recollections and experiences of multiple former HR professionals,” Ciardelli wrote.
A ‘sex-driven’ culture
In interviews with the Tribune, multiple former employees described a “boys club” atmosphere at Guaranteed Rate; Scott, the former director of VA lending, said there was “a lot of misogyny.”
Jessica Moreno, a former Chicago employee who started at Guaranteed Rate at age 23, said she was the first in her family to get a corporate job. Within a year of starting her job, she said, she was paying the mortgage on her family home.
But in her department, Moreno said she experienced a “sex-driven” culture.
“All the guys were just like, tongues on the floor,” said Moreno, who worked for the company for about four years starting in 2014. Her workplace was “like a men’s locker room, and women were in it,” she said.
Jessica Moreno, shown in April in Arizona, worked for Guaranteed Rate for about four years starting in 2014. She said male co-workers and managers hit on her and made comments on her appearance. It was “like a men’s locker room, and women were in it,” she said. (Brian Cassella/Chicago Tribune)
Male co-workers and managers would hit on her and make comments on her appearance, calling her pretty, Moreno said. Comments made at Christmas parties or happy hours could be crasser, she said.
“You’ll get, ‘Oh, I’ve always wanted to f−−− you,’” she said.
Moreno said she once overheard a male manager describe a woman who had interviewed for a job as a “fox.” Another time, she said, a manager invited a female massage therapist to the office; Moreno remembers male co-workers commenting on the therapist’s body, too.
Soon after she’d started at Guaranteed Rate, Moreno said, she met with HR to make a complaint about a manager who swore at and belittled her. The HR representative brushed off her concerns in that meeting, she said.
“After that, I felt so discouraged to never even speak up again,” Moreno said.
Moreno ended up leaving her position before taking a job working for a Guaranteed Rate loan officer; she said she was terminated after clashing with the loan officer’s assistant.
Some female former employees of Guaranteed Rate said they understood looks to be a currency within the company.
One former Chicago employee said a manager encouraged her to text a selfie to a client after hearing the client flirt with her over the phone and say he’d be inclined to speed up the loan process if he knew what she looked like.
The employee said she sent the selfie, and the manager then pushed her to go along with the client’s harassment until the loan closed, she said.
After receiving the photo, the client responded, “As pretty as you are I can’t believe some man hasn’t run off with you just howling away,” in a text reviewed by the Tribune. Later on, after sending her forms, the client texted her: “You said I would get another pic when I sent you the forms so?”
The employee said another manager in her division would frequently flirt with her and comment on her appearance. He once texted her to “stop losing weight damn it” and another time texted her that she “broke (his) concentration,” according to texts reviewed by the Tribune.
Another former Chicago employee remembered a manager telling her, while she was pregnant with her first child, “Whatever you do, don’t get a C-section — you’ll never wear a bikini again.” The employee went out on maternity leave days later. She said she did end up needing a C-section and remembers the manager’s comment echoing in her head as she was wheeled back for surgery. Two people the woman told about the incident at the time corroborated her account in interviews with the Tribune.
Several former employees in the marketing department, including two men, told the Tribune Ciardelli made comments about workers’ ages. One employee got Botox and fillers after Ciardelli told employees they were “too old” and likened the marketing department to his “grandmother’s mortgage company,” according to former marketing department employees.
In his written responses, Ciardelli said “Guaranteed Rate is committed to fostering an environment that promotes diversity, equity, inclusion, and accessibility. We maintain a comprehensive set of employment policies aimed at providing a work environment free of unlawful harassment and discrimination, where all employees treat one another with dignity and respect.”
Guaranteed Rate’s corporate headquarters is in Chicago’s North Center neighborhood in a building with a rooftop gathering space. (Brian Cassella/Chicago Tribune)
A spokesperson said in the April 1 email sharing the employee survey results that the company had launched “even more initiatives to ensure we have a positive work environment,” including anti-harassment training, training for the human resources team “to take proper and appropriate steps and best practices for investigating and responding to employee complaints” and reminders to employees on how to report harassment or abuse.
“Our executive team has emphasized to Human Resources that all complaints should be investigated, and any form of harassment and misconduct should be dealt with swiftly – and all managers and employees who are not acting in accordance with our values be rooted out of our organization,” the spokesperson wrote.
In the company’s May responses, it said these initiatives were launched in 2023 and were to “expand and enhance” the existing training program.
All Guaranteed Rate employees must complete “harassment and discrimination prevention training” upon being hired and on an annual basis thereafter, according to the company’s May response. The company said Guaranteed Rate has an “anti-retaliation” policy that prohibits retaliation against employees who report alleged harassment or discrimination or participate in an investigation into the conduct. The company also noted it has an ethics hotline through which employees can make anonymous complaints.
“We respect and treat all employees equally no matter their sex, color, or creed,” Ciardelli wrote.
In the last 10 years, Guaranteed Rate has not settled any lawsuits involving claims of a hostile work environment, according to the company. Guaranteed Rate’s response stated that within that time frame, the company settled six claims involving allegations of a hostile work environment, including arbitration cases as well as claims filed with the Equal Employment Opportunity Commission and state and local agencies. The majority of those claims were brought by male employees, and one was resolved in Guaranteed Rate’s favor, the company said.
Guaranteed Rate employees are asked to sign mandatory arbitration agreements when they are hired, but sexual harassment claims and claims filed with the EEOC and similar state agencies are not subject to arbitration, according to Guaranteed Rate’s May responses.
‘Positive thinking’
Publicly, Ciardelli presents himself as a champion of a positive work environment — an image the company has encouraged employees to promote.
In an email sent in February by a company executive and obtained by the Tribune, employees were encouraged to share a Forbes article featuring Ciardelli; the email provided step-by-step instructions for posting it on social media.
The story, published Feb. 7, was titled “Guaranteed Rate Founder Is All In On ‘Positive Thinking’ This 2024” and described his leadership style as “Chicken Soup for the Mortgage Industry.”
“I communicate the power of positivity and gratitude to everybody around me: employees, friends, family members, everyone,” Ciardelli was quoted as saying.
Less than 24 hours after it went live, the article disappeared from the Forbes website. The site provided no explanation, but one former Guaranteed Rate employee told the Tribune former workers had written to the author about factual inaccuracies.
On Feb. 8, a Guaranteed Rate executive sent another email encouraging employees — again with step-by-step instructions — to delete any social media posts linking to the article.
“We are working with Forbes to resolve and will let you know when it will be reinstated,” the email said. “We apologize for the inconvenience, and we will send out a new link as soon as it’s available.”
The Forbes contributor declined to comment for this story. Forbes told the Tribune the article was taken down because it did not adhere to the company’s “editorial guidelines” and did not respond to further questions.
The article has yet to be republished, but Guaranteed Rate still wants people to read it. The company shared it in a PDF on its LinkedIn page.
Inside: Learn what 20 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $20 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is $20 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $20.50 an hour annually?
In this post, we’re going to detail exactly what $20 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
Knowing 20 dollars an hour is how much a year will help you with your budget and spending.
If that is something you want too, then keep reading. You are in the right place.
$20 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $20 per hour as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $20 = $41,600
$41,600 is the gross annual salary with a $20 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s Breakdown How That Number Is Calculated
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $20 times 2,080 working hours, and the result is $41,600.
That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
So, $20 an hour is just above $40000 a year and just shy of $43000 a year.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $20 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $20 times 1,040 working hours, and the result is $20,800.
How Much is $20 Per Month?
On average, the monthly amount would average $3,467.
Annual Amount of $41,600 ÷ 12 months = $3,467 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $17 an hour, you average an extra $520 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,733.
How Much is $20 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $20 = $800 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $400.
How Much is $20 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $800 and double it.
$800 per week x 2 = $1,600
Also, the other way to calculate this is:
40 hours x 2 weeks x $20 an hour = $1,600
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $800.
Learn how to create a biweekly budget.
How Much is $20 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $20 per hour = $160 per day.
If you work 10 hours a day for four days, then you would make $200 per day. (10 hours x $20 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $80.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
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$20 Per Hour is…
$20 per Hour – Full Time
Total Income
Yearly (52 weeks)
$41,600
Yearly (50 weeks)
$40,000
Monthly (173 hours)
$3,467
Weekly (40 Hours)
$800
Bi-Weekly (80 Hours)
$1,600
Daily Wage (8 Hours)
$160
Net Estimated Monthly Income
$2,647
**These are assumptions based off simple scenarios.
Paid Time Off Earning 20 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $41,600 per year.
This is the same as the example above for an annual salary making $20 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $20 times 2,000 working hours, and the result is $40,000.
40 hours x 50 weeks x $20 = $40,000
You would average $160 per working day and nothing when you don’t work.
$20 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $41,600
Federal Taxes of 12%: $4,992
State Taxes of 4%: $1,664
Social Security and Medicare of 7.65%: $3,182
$20 an Hour per Year after Taxes: $31,762
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$31,762 ÷ 2,080 hours = $15.27 per hour
After estimated taxes and FICA, you are netting $15.27 an hour. That is $4.73 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $15 an hour wage is much different.
Understand the difference between gross pay vs net pay.
$20 An Hour Salary
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $20.01-20.99.
Learn how to budget on a low income.
This is super helpful if you make $20.19 or $20.25.
You are probably wondering can I live on my own making 20 dollars an hour? How much rent can you afford at 20 an hour?
We have figured out how much is $20 an hour annually is $41,600.
Using our Cents Plan Formula, this is the best case scenario on how to budget your $20 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $20 an hour was $15.27 after taxes. That would average $2,647 per month.
According to the Cents Plan Formula, here is the high level view of a $20 per hour budget:
Basic Expenses of 50% = $1323.40
Save Money of 20% = $529.36
Give Money of 10% = $264.68
Fun Spending of 20% = $529.36
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $20 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $20 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$277
Savings
15-25%
$693
Housing
20-30%
$983
Utilities
4-7%
$139
Groceries
5-12%
$243
Clothing
1-4%
$26
Transportation
4-10%
$139
Medical
5-12%
$173
Life Insurance
1%
$17
Education
1-4%
$35
Personal
2-7%
$64
Recreation / Entertainment
3-8%
$113
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$820
Total Gross Income
$3,467
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving are less.
Deep Dive: What Is A Good Salary For A Single Person in Today’s Society?
Can I Live off $20 Per Hour?
At this $20 hourly wage, you are close to double the minimum wage. Things should be easy to live off this $20 hourly salary.
However, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
Can you truly live off $20 an hour annually?
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 20 dollars per hour. No going into debt for me. I will start saving money.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $20 an hour?
Yes, you can do it, and as you can see that it is possible with the sample budget of $20 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $20.50 will add up over the year. Even better $21 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $20 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I need in my life to do what I want when I need to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
There are so many legit ways to make 300 dollars fast today!
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially sounds happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in about seven months. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Related Questions:
Tips to Live on $20 an Hour
In this last section, grasp these tips on how to live on $20 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $20 an hour. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $20/hr salary. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $20 an hour minus all the taxes, FICA, social security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money with the 100 envelope challenge and this is why you are doing it.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn that a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
Find ways to make $1000 in a day.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $20 an Hour
You can find jobs that pay $20 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant – Get free training NOW!
Customer service representatives
Bank tellers
Freelance writers
Restaurant Kitchen staff
Truck driver
Uber /Lyft driver
Security guard
Movers
Warehouse workers
Companies that pay more than $20 per hour: Costco, Wayfair, Amazon, Best Buy, Target, In ‘N Out Burger, Wells Fargo, Disney World, Disney Land, Bank of America, JP Morgan, Cigna, Aetna
$20 Per Hour Annual Salary
In this post, we detailed 20 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 20 dollars an hour annually…
$41,600
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 25 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $25 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is $25 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $25.50 an hour annually?
When you finally start earning $25 an hour, you are happy with your progress as an hourly employee. Typically, this is when many hourly employees start to become salaried workers.
In this post, we’re going to detail exactly what $25 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
Knowing 25 an hour salary is helpful for budgeting and allocating your spending.
If that is something you want too, then keep reading. You are in the right place.
$25 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $25 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $25 = $52000
$52,000 is the gross annual salary with a $25 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $25 times 2,080 working hours, and the result is $52,000.
That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
That is just above the $50000 salary threshold, but lower than the 60K salary, which is desired to become middle-income worker.
Work Part Time?
But you may think, oh wait, I’m only working part-time. So if you’re working part-time, the assumption is working 20 hours a week at $25 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $25 times 1,040 working hours and the result is $26000 per year.
How Much is $25 Per Month?
On average, the monthly amount would average $4,333.
Annual Amount of $52,000 ÷ 12 months = $4,333 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $20 an hour, you average an extra $866 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $2,167.
How Much is $25 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $25 = $1,000 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $500.
How Much is $25 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,000 and double it.
$1,000 per week x 2 = $2,000
Also, the other way to calculate this is:
40 hours x 2 weeks x $25 an hour = $2,000
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,000.
How Much is $25 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $25 per hour = $200 per day.
If you work 10 hours a day for four days, then you would make $250 per day. (10 hours x $25 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $100.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
$25 Per Hour is…
$25 per Hour – Full Time
Total Income
Yearly (52 weeks)
$52,000
Yearly (50 weeks)
$50,000
Monthly (173 hours)
$4,333
Weekly (40 Hours)
$1,000
Bi-Weekly (80 Hours)
$2,000
Daily Wage (8 Hours)
$200
Net Estimated Monthly Income
$3,308
**These are assumptions based on simple scenarios.
Here are the jobs that pay $25 an hour.
Paid Time Off Earning 25 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $52000 per year.
This is the same as the example above for an annual salary making $25 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling a family emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $25 times 2,000 working hours, and the result is $50,000.
40 hours x 50 weeks x $25 = $50,000
You would average $200 per working day and nothing when you don’t work.
$25 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $52,000
Federal Taxes of 12%: $6,240
State Taxes of 4%: $2,080
Social Security and Medicare of 7.65%: $3,978
$25 an Hour per Year after Taxes: $39,702
This would be your net annual salary after taxes. Less than $40000 per year!
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$39,702 ÷ 2,080 hours = $19.09 per hour
After estimated taxes and FICA, you are netting $19.09 an hour. That is $5.91 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
$25 an Hour Budget – Example
You are probably wondering can I live on my own making 25 dollars an hour? How much rent or mortgage payment can you afford on 25 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $25 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated that $25 an hour was $19.09 after taxes. That would average $3,208 per month.
According to the Cents Plan Formula, here is the high-level view of a $25 per hour budget:
Basic Expenses of 50% = $1654.25
Save Money of 20% = $681.70
Give Money of 10% = $330.85
Fun Spending of 20% = $661.70
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $25 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $25 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$217
Savings
15-25%
$650
Housing
20-30%
$1,213
Utilities
4-7%
$217
Groceries
5-12%
$329
Clothing
1-4%
$22
Transportation
4-10%
$195
Medical
5-12%
$217
Life Insurance
1%
$22
Education
1-4%
$33
Personal
2-7%
$65
Recreation / Entertainment
3-8%
$130
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,025
Total Gross Income
$4,333
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
25 an hour Salary
Many times, you don’t make exactly 25/hr. You may make $25.18 or $25.66. So, here is a handy calculator to figure out your exact hourly salary wage.
At this $25 hourly wage, you are more than likely double the minimum wage. Things should be easy to live off this $25 hourly salary.
Yet, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $25 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.
Can you truly live off $25 an hour annually?
You just have to have the desire to spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I have aspirations and goals to increase how much I make. This is the time to start diversifying my income into multiple streams and start investing. I am going to stretch my 25 dollars per hour.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $25 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $25 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $25.50 will add up over the year. Even better $26 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work.
Making $25 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially to becoming financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $25 an Hour
In this last section, grasp these tips on how to live on $25 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $25 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $25 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $25 an hour minus all the taxes, FICA, social security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn that a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher-taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Here are resources now for you to pay off your debt:
Jobs that Pay $25 an Hour
You can find jobs that pay $25 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant – Get free training NOW!
Freelance writer
Class A Truck Driver
Managers
Entry Level Marketing Jobs
Data Entry Clerks
Customer service managers
Bank tellers
Maintenance workers
Freight broker – Learn how easy it is to start!
Administrative assistants
Athletic Trainers
Event Planners
Security guard
Movers
Warehouse workers
Companies that pay more than $25 per hour: Costco, Wayfair, Amazon, Best Buy, Target, Wells Fargo, Disney World, Disney Land, Bank of America, JP Morgan, Cigna, Aetna, etc
$25 Per Hour Annual Salary
In this post, we detailed 25 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 25 dollars an hour annually…
$52,000
This is right between $51000 per year and $53k a year.
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
The big effort we have is a GPT. But we also own our own point of sale system. We’ve always owned our own loan application — it’s something we’ve built. We own it, we control it and we customize it for the best usage.
SW: What does your tech team look like?
CB: My tech team is hybrid. I have my expertise in technical analysis on-shore here, and then I use some overseas developers to do the actual coding. But all of the other product design and execution and rollout happens out of our offices.
SW: What differentiates your tech?
CB: Because I only have one client, I’m able to do the most customized thing that helps our business the most. Our team’s success is we’re very close to sales and operations. I’m not removed in some sort of headquarters building somewhere. I get my best ideas from my salespeople and from my ops people. So, the fact that I can collaborate with the users to get their ideas embedded into the solutions for NFM, that’s what makes it successful.
SW: How do you think about security?
CB: We put together a plan that is focused more on business continuity. I mean, obviously, we have all sorts of things set up to defend ourselves, and many tools. But we put a lot of effort into making sure we can get up and running again quickly if something happens.
SW: What keeps you up at night?
CB: I want to be best in class. So, our new point of sale system, we want to be better than anybody else. I’m competing with the companies that are at number one, two, three and four, not with number 25.
SW: How are you leveraging artificial intelligence?
CB: We’ve been talking about AI for a while, but in April of 2023 I formalized a two-year plan that consists of a three-pronged approach. So, the first is certainly the GPT side — LLM (large language model) solutions. The second area was, how do we build a system for the loan originators? So, our loan app has [Microsoft] Copilot features. And the third prong was, how do you introduce AI in the manufacturing process?
We were invited by AWS [Amazon Web Services] to attend their event and present on AI for lending. We have our own GPT that links to all our data, and is proprietary, that privately and securely can hit the internet — not because you got an account, but I’m going directly through private, single sign-on from within my enterprise.
But I also have allowed our company to have GPTs with specific company content, so we can have our own non-QM GPT, and a GPT that goes into our HR, and I can ask those GPTs a question. So, I’m giving our users proprietary, private GPT capability inside my enterprise on our SharePoint, to ask questions of our own code.
And we took that idea to the next level, where not only can you safely ask questions on our own content, but we can also query and do data mining at the same time. So, I can ask a question: ‘Show me all the loans that I closed six months ago above 6%,’ and I get my list. And then on that list, I can say ‘Oh, for this person, write an email to this borrower based on this data.’ That’s been in production since November and people are using it. I have, on average, 350 daily hits internally of our users hitting our GPT.
SW: What’s left on your two-year road map for AI?
CB: We are just releasing a new version of our online loan application that has Copilot features for our loan officers, where it’s not making decisions for the loan officer, but it’s assessing the app as it’s coming in in real time, and giving them critical information where they can move the loan approvals faster. And then we’re working on introducing AI-enabled OCR (optical character recognition), so we can real-time compare documents using AI to catch things.
SW: What part of these new AI capabilities is exciting to you?
CB: The GPT. The ability for me to write a query right and ask it to give me my loans, and then write an email. Or to ask for files and a status update — it pulls my data out of that file and it writes an email to the borrower or to the referring Realtor about the status. I’ve just saved 15 minutes. And our people are doing that right now.
But I think where it’s exciting is for the loan officer. You are coming up with this content securely — you’re not posting anything to the internet. And this is not customer-facing. But if I can make my people 50% or 60% or 70% more productive, that’s the pick-up for me. And I can do all this on my phone — I don’t have to be on my computer
I’m a true believer that the winners of this world are the people who embrace these technologies. And we’re looking to make this available to other lenders, because our friends in the industry are asking for it, so we’re looking at that too.