The most natural aspects that corporate consider when they think about employee well-being are the mental, emotional and physical aspects of financial wellness that are often overlooked.
In the wake of the pandemic, many organisations renewed their focus on mental health. However, research suggests that money worries severely impact mental health. This impacts employees' productivity and overall retention and engagement.
One of the most difficult challenges that businesses face today is retaining employees and lowering attrition rates. Recent reports on employee well-being have estimated that over 63% of an organisation’s workforce burns out on the job. The reports also suggested that over 83% of employees felt satisfied at their jobs if their organisation offered a wellness program. Over 54% also desired that their organisations would validate their financial decisions.
There is a lot of stigma around getting help for mental issues from financial problems and employees may be hesitant or embarrassed to admit that they need guidance or help. This is also because they tend to believe that finance is a private matter and don't want to be noticed for being in debt.
In times of urgent needs, employees usually have to run from pillar to post, bank to bank, and approach numerous financial institutions. When people face financial difficulties, they frequently seek loans from family and friends.
When an organisation transforms into a dependable friend or family member for its employees, it gains enormous trust and respect in the minds of those in need. Organisations can devise innovative methods of providing corporate HR loans and lending to employees in order to alleviate their financial burden and assist them in navigating through emergencies.
Given this connection between financial wellness and mental health, employers should consider offering various financial wellness programmes targeted at employee retention that include:
- On-demand wage access
- Financial literacy sessions
- Incentivise financial wellness programmes to increase participation by way of discounted premiums and cash benefits
34% of India’s population consists of millennials. They often face life-changing events such as getting married, starting a family, buying a house or funding their children’s education. Managing finances on a fixed income can often be challenging, especially among low-income groups. Financial stress can crawl into their lives and disengage them from work activities when they are constantly on the lookout to access fresh funds to repay old debts or pay for unexpected expenses.
Employers have much to gain when they have more engaged employees. By setting up employee resource groups, directing employees to resources and educating them to help with employees’ financial wellness, resulting in better productivity and less stress, employers can address this issue.
Organisations must understand their employees' needs in order to ensure their retention and, more importantly, to be a catalyst in increasing productivity and satisfaction. This is where Corporate HR loans have emerged as one of the most important tools for employee retention in recent years.
Offering On-demand wage access also gives employees a sense of security. Having calm and stress-free mental health is critical for an organisation's productivity and happiness. This also has an impact on an organisation's reputation.
As a company that provides corporate loans and financial assistance to its employees, one builds a good reputation, which attracts more good-willed and hardworking people. An organisation that looks after its employees' needs and provides financial assistance such as corporate loans builds a good reputation in the market and makes current employees proud to work there. This boosts their productivity and attracts better talent.
Employee loans also have a cascading effect on the turnover of an organisation. Providing easy loans for employees at their desks and introducing new loan schemes embedding them within the HR policy helps to ensure long-term commitment from employees.
Employees become more loyal and trusting of such employers and this helps increase productivity and lower attrition rates. When an employer stands by its employees during financial contingencies, it is a supreme sign of trust and a supportive attitude from employers. This goes a long way in employee retention and reduces employee turnover.
Making easy loans available to employees at their desks and incorporating new loan schemes into HR policy helps to ensure long-term commitment from employees. Employees become more loyal and trusting of such employers, which aids in increasing productivity and decreasing attrition rates. When an employer stands by its employees in times of financial difficulty, it is a supreme sign of trust and a supportive attitude on the part of the employer. This contributes significantly to employee retention and reduces employee turnover.