Why Employers Must Focus on Financial Wellness for Employees
Naidu owns a Hyundai automobile showroom and takes pride in the strong salesmanship of his favourite employee, Suresh. But recently Suresh had been slacking off. He no longer sported his trademark wide smile, was reticent with his colleagues, and his interactions with customers were looking forced. Naidu took him aside one day for a chat and found out that Suresh had been struggling to get a short-term loan. He wanted to renovate his house, which was in bad shape due to heavy rains. Banks had rejected him. He was hesitant to approach moneylenders due to unreasonable interest rates. Leaking pipes, peeling plaster, and the lack of money to repair any of it were giving Suresh sleepless nights.
The overall health of the employee is now a corporate responsibility and a crucial factor that has been shown to play a big role in productivity, retention, and engagement. And for India’s low to middle-income groups, health is wealth. Literally.
A 2016 study by risk and insurance advisory Willis Towers Watson showed that 56% of Indians are worried about being in a worse situation than their parents after retirement. Nearly 46% of employees surveyed expressed deep concerns about their current financial state.
In the case of low and middle-income employees the situation is exacerbated because the majority lack financial awareness, are excluded by banks when it comes to loans, and lack recourse to alternative structured resources. In their constant search for a higher income and better life they jump jobs frequently, which results in worrisome attrition rates. Clearly, investing in your employees’ financial wellness is an investment for yourself.
So what can you, as an employer, do to help? Here are a few ways in which you can provide financial support to your employees that will ensure a wholesome life for them and a profitable organization for you.
Make financial wellness a cause
Partnering with a financial advisor who is always at hand to discuss the problems that your employees have will enable them to make better decisions. A survey by ArthaYantra in 2017, showed that 72% of employees surveyed lacked financial awareness to strategically plan for retirement. Remedy this by holding financial wellness seminars and workshops targeted for different employee bands. Make sure you include families wherever possible as most financial decisions are hardly made alone.
Put technology to good use
A 2017 study by E&Y shows that India’s FinTech adoption rate is the second highest in the world at 52%. Now, there are apps for payments, securing and tracking loans, and credit score analysis among others. Partnering with these service providers will give your employees instant access to money when needed and will also help them manage it as well.
Make a gift of it
To emphasize the importance of financial wellness, make it a gift. Festivals are always a time when employees look forward to receiving sweets and bonuses. Why not incorporate financial wellness programs also as part of the celebrations? Not only will this ensure the future of the employees but that of your organization as well.
Special assistance for the lower-income band
The financial needs of an office assistant, junior customer relationship manager, and a marketing manager are vastly different. Particularly when it comes to loans. Providing special assistance for those in the lower-income category will help them avoid the consistent rejection they might face from banks and overcome their financial worries faster translating into improved performance at work.
After listening to Suresh’s story, Naidu signed up with PerkFinance, which he knew had employees like Suresh who earned more than Rs 15,000 per month as their customers. Within a few days Suresh was able to get a loan. He didn’t have to think about excessive interest rates and Naidu did not have to worry about repayments as it would simply be deducted from Suresh’s salary.
Today, Suresh is back to his normal, cheerful self. In fact, he has brought in more customers than he ever had before.
Employees are the heart of an organization. We, at PerkFinance, understand that very well. That’s why we make the process of borrowing easy and accessible to all. At zero cost and zero risk to you. Visit PerkFinance and contact us to know more.