A $250,000 'forgivable' employer loan breaks down to just $25,000 a year — and can come with a hefty tax bill
Key takeaways
- In fact, the Society for Human Resource Management (SHRM) (1) estimates that the costs of replacing a worker can range between 50% and 200% of the employee's salary.
- In light of this high price, it's not surprising that some companies take creative approaches to try to deter top performers from leaving.
- Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
A $250,000 'forgivable' employer loan breaks down to just $25,000 a year — and can come with a hefty tax bill Christy Bieber Wed, July 1, 2026 at 7:00 PM GMT+7 5 min read shutterstock.com When an employee leaves a business, the company pays for the departure. In fact, the Society for Human Resource Management (SHRM) (1) estimates that the costs of replacing a worker can range between 50% and 200% of the employee's salary. This includes direct and indirect costs like severance pay, recruitment, onboarding, training, lost productivity and temporary staffing.
In light of this high price, it's not surprising that some companies take creative approaches to try to deter top performers from leaving. For example, some businesses may even offer forgivable loans (2) to attract and keep talent. But how exactly do these work and are they a good idea for employees to accept?
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one