In today’s competitive world, employees are the most valuable assets for any organisation. Despite offering several benefits such as wellness programmes, work-from-home options, insurance covers, leave benefits, etc, employee retention is still a major challenge for many organisations, as employees generally change jobs if they are offered better benefits by other companies. So, how can an organisation gain its employees’ trust and retain its talented workforce for a longer tenure? The first step to retain talent is to understand the requirements of employees. Many a time, employees put their papers down due to the financial stress they go through, consequently resulting in employees seeking for an alternative that can give them financial security. The employer, here, is required to come up with solutions that do not just alleviate the financial stress, but also play the role of a differentiator in retaining and increasing the productivity of the staff. Employee loans or corporate HR loans have emerged as one of the key differentiators in recent times. Here are some takeaways as to how these can provide an edge to organisations over their competitors:
Reduced financial stress among employees: During any financial contingency, people often approach family or friends. How about an organisation becoming a family or a friend in need for its employee? Yes, it is here that a number of organisations are playing a major role by providing a helping hand to their staff through innovative ways of providing financial assistance—in the form of employee loans or corporate HR loans, thereby helping them meet their financial emergencies.
Increased staff productivity: To avail a loan, employees often have to run helter-skelter from one bank or financial institution to another. It consumes a lot of time and effort, resulting in stress. This not just distracts employees from their work, but also reduces their productivity. It would be a great help if the employer can provide financial assistance to its staff at their desk. It will help businesses build loyalty, improve employee engagement and morale, resulting in better efforts being put by employees in their work, thereby increasing staff productivity.
Boost in business reputation: The success of a business highly depends on its reputation. A business that takes care of its employees and recognises in-house talent also builds a good reputation in the market and attracts better talent.
Reduced turnover: Studies have shown that employees not always leave the employer because of a low pay hike, but due to several other factors such as unpleasant work environment, inadequate infrastructure, inferior management, convoluted HR policies, etc. Continuous engagement with employees is very important to create a conducive work environment and produce employee-friendly outcomes. Standing with employees during their financial contingencies further helps businesses retain staff, thereby reducing the employee turnover. Businesses generally employ different techniques to retain their employees. Offering loans to employees at their desk can certainly help employers build trust and loyalty among employees. It will also ensure long-term commitment by the employee towards the employer.
Brahma Mahesh Khaderbad
The author is co-founder & CEO, FinMomenta, which operates in the online lending marketplace.
Views are personal