Corporate HR loans that can help retain talent — People Matters

The most natural aspects that companies consider when thinking about employee well-being are the mental, emotional and physical aspects of financial well-being that are often overlooked.

In the wake of the pandemic, many organizations have renewed their focus on mental health. However, research suggests that worrying about money has a big impact on mental health. This impacts employee productivity as well as overall retention and engagement.

One of the toughest challenges facing businesses today is retaining employees and reducing attrition rates. Recent employee wellness reports have estimated that over 63% of an organization’s workforce burns out at work. Reports also suggest that over 83% of employees feel satisfied with their jobs if their organization offers a wellness program. More than 54% also want their organization to validate their financial decisions.

There is a lot of stigma around getting help for mental issues related to financial issues and employees may be hesitant or embarrassed to admit they need advice or help. It’s also because they tend to believe that finance is a private matter and don’t want to be noticed for their debt.

In times of emergency, employees usually have to run from pillar to post, from bank to bank and approach numerous financial institutions. When people face financial difficulties, they frequently seek loans from family and friends.

When an organization turns into a trusted friend or family member to its employees, it gains tremendous trust and respect in the minds of those who need it. Organizations can devise innovative methods of providing HR business loans and employee loans to ease their financial burden and help them through emergency situations.

Given this link between financial wellness and mental health, employers should consider offering a variety of financial wellness programs targeting employee retention, including:

  • Salary access on demand
  • Financial Literacy Sessions
  • Incentivize financial wellness programs to increase participation through reduced premiums and cash benefits

34% of India’s population is made up of millennials. They are often faced with life-changing events, such as getting married, starting a family, buying a house or financing their children’s education. Managing finances on a fixed income can often be difficult, especially among lower income groups. Financial stress can seep into their lives and disengage them from their professional activities as they constantly seek access to new funds to pay off old debts or pay for unexpected expenses.

Employers have a lot to gain when they have more engaged employees. By creating employee resource groups, directing employees to resources, and educating them to help them improve their financial well-being, which translates to better productivity and less stress, employers can solve this problem. problem.

Organizations must understand the needs of their employees 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 become one of the most important tools for employee retention in recent years.

Offering on-demand salary access also gives employees a sense of security. Having a calm and stress-free mental health is essential for an organization’s productivity and happiness. It also has an impact on the reputation of an organization.

As a company that provides business loans and financial assistance to its employees, one builds a good reputation, which attracts more goodwill and hardworking people. An organization that looks after the needs of its employees and provides financial assistance like business loans builds a good reputation in the market and makes current employees proud to work there. This increases their productivity and attracts better talent.

Employee loans also have a cascading effect on an organization’s turnover. Offering easy loans to employees at their desk and introducing new loan programs by integrating them into HR policy helps to secure long-term employee engagement.

Employees become more loyal and trust these employers, which helps increase productivity and reduce attrition rates. When an employer stands by their employees during financial contingencies, it is a supreme sign of trust and a supportive attitude from employers. This greatly contributes to employee retention and reduces employee turnover.

The provision of easy loans to employees at their workstations and the integration of new loan schemes into the HR policy make it possible to ensure the long-term commitment of employees. Employees become more loyal and trust these employers, which helps increase productivity and reduce attrition rates. When an employer stands with their 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.

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