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Breaking Stereotypes: The Future Of Finance And Tech Is (And Will Be) Women

Work culture in organizations is gradually moving towards diversification and inclusion. The current times are witnessing gender stereotypes bring identified and shattered in the wake of gender sensitization and diversity. Organizations across the globe are making concerted efforts towards the goal of equality of opportunity. Still, equality at workplaces is a far fetched dream. Take for instance the case of the US, where: 

Yet they earn lower salaries and fill up fewer seats in male-dominated professions like technology and finance. Fortunately, these stereotypes – those of women typically avoiding math, science and often all things logic – are on the verge of shattering.

A study conducted by the global research organization Catalyst stated that among Fortune 500 companies, the companies which had the highest number of women directors on board have shown better financial results and those having at least three women on their board have stronger-than-average results.

Gender Stereotyping deeply impacts the psyche and confidence of the female workforce. As per research, by the age of 6 years stereotypes regarding intellectual ability take root in girls. Girls identify themselves less with STEM subjects (Science, Technology, Engineering, and Mathematics). At the workplace, women find a less conducive environment to hold leadership and skill-based jobs, share their ideas in discussions concerning these subjects. 

Indian Scenario: Tech

The current Indian scene has begun a positive, and hopefully soon – pretty picture: 

  • Women representation in corporate jobs has increased from 21% to 30% in a span of five years, as posted in  Zinnov-Intel Gender Diversity Study 2019
  • Females are represented higher in non-technical roles at 31%, while in technical roles their share is 26%. 
  • Only 11% of the C-suite positions are held by the women, they were represented at  20% in mid-roles and 38% in junior roles. 
Women's Day

If these stats are compared with the global figures, Indians are surely taking strides in leaps and bounds to cut across cultural misfits and gender Stereotyping issues. As per a NASSCOM study of IT professionals and middle management from companies of Europe and India, 35% of the people with specialist technology roles are women in India as compared to a mere 17% female representation in Europe. 

Several organizations like Oxfam India through its campaign Bano Nayi Soch are all in for progressive ideas that subvert the norms of patriarchy.   

In 2016, Facebook initiated recruitment practices focused on bringing in black and female workers into their workforce – in who now make up 36% of its workforce. Sheryl Sandberg, COO of Facebook and the only woman on their board posits the concept of ‘leaning in’ in her recent book as the idea of being ambitious in any pursuit.  

Kiran Mazumdar Shaw, the CEO of Biocon and the first woman billionaire entrepreneur, reiterates that there is no dearth of talent in meritorious women and even though a small minority, they are well respected and worthy of inclusion. 

Indian scene: Finance

Women are considered excellent investors, but female representation in the finance sector remains meager. A CFA Institute Gender in Investment Management study shows a mere 11% representation of women investment professionals in the industry.  Research across the globe has proved how a culturally rich and diverse workforce delivers optimum results and lower risks for investors. Experts cite several pros of getting the women included in the workforce. 

  • Firstly, female inclusion will tend to bring in newer perspectives into the industry that can usher in a new revolution in the industry. Quality of output and decisions will definitely see improvements. 
  • Gender diversity can lead to innovations and rethinking of the old investment strategies that are sure to impact investment outcomes. 

Several initiatives have been taken to improve the involvement of the females at all levels. For instance, Young Women in Investment, India’s first initiative seeks to create female awareness and interest in the investment management industry. The initiative focuses on presenting investment as a long term viable career option to the women. The success and support of this initiative have definitely paved the way for the inclusion of females in the future of finance. 

Initiatives to Break Stereotypes

While we’re doing well, there can be several initiatives that can make the future of tech and finance into a substantial female-centric arena: 

  • Tech can be leveraged to advance gender parity and women empowerment in a number of ways. The development of the gig economy is offering a contingent workforce that is sure to lessen such gaps in the future. 
  • Unlearning the biases in our mindset and doing away with gender stereotypes will be a daunting task that would demand our attention towards sustainable and all-inclusive economic growth. 
  • A survey conducted by Unilever showed that 77% of men and 55% of women felt that men are best suited for high-stake projects. Such views deeply impact gender parity issues. Marketers and media need to stop the sexist portrayal of women. 
  • Social, political and cultural fronts should take it upon themselves to curb these formative practices of stereotyping and expose both the genders to all kinds of non-traditional fields like tech or finance to let them make their decisions rationally. 
  • There is a dire need to bridge the skill gap among women by taking advantage of digitization and tech innovations. The global “talent shortage” is currently at 38%, with the top ten hardest jobs to fill in STEM professions. The focus has to shift to building competencies and skillsets among women. 
  • Another key area of concern is the online representation of women. There are 250 million fewer females present online as compared to males. Connecting and bringing greater access to regions with no internet can bring about unforeseen opportunities and can even act as catalysts synthesizing women’s inclusion in tech and finance. 

The instilling of the right temperament among the youth holds prime importance as the majority of them make their career choices by the age of 26 as per a survey. Women do not lack in tech or finance skills and knowledge, what they lack is the proper nurturing environment enabling them to fulfill their dreams sans any bias or stereotyping. Once the institutions of today get in sync with gender equality and diversity themes, the potential and opportunities awaiting women in tech and finance can be attained.
And we can surely hope for a feminine era in finance and technology awaiting us in the near future. 

“You are fierce, bold and daring! Also, the best when it comes to caring.”
Happy Women’s Day!

Featured

Spouse In The Same Office: A Closer Look At The Implications for HR

Compiled By: Sandeep Raghunath
About Sandeep: He is the Head of Human Resources at EarlySalary, with 10+ years of international experience in HR across industries.

It is perfectly natural for a professional to fall for another if they’re working in the same office, or are spending a significant amount of time together. Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction. While they may be frowned upon, relationships within an office setting are far from uncommon. Some partners even often end up getting married. 

In this context, however, the HR function isn’t expected to remain out of the loop. Organizational policies, cultural sensitivities, etc – there are many factors influencing the HR functions’ role in managing professionals with a spouse in the same office. How can they approach this? Let’s look at some important aspects.

Disclosure of relationship

It is vital to maintain an environment where it is known that keeping a relationship or marriage secret is not in the interest of the company and can have larger implications. According to Sarah Churchman, head of diversity and inclusion and employee well being at PwC, the only way to manage relationships is for the couple to be totally out in the open. “If they don’t inform us, someone else in the department will. Not because they are necessarily behaving in an inappropriate manner, but simply because they may fear a problem with favoritism.”

Some enterprises have a policy in place allowing for managers to be demoted, transferred or even dismissed in the case of the manager being in a relationship with their direct report without disclosing the same. It is, therefore, essential that an office couple is made to sign out a disclosure form with the HR Department. This allows for a line of communication between the office and the parties involved and also serves as a formal notice of their relationship. It also prevents misinformation and rumor-mongering in the workspace which hampers productivity. 

Different organizations have varying HR policies on how they deal with a spouse at the same office. If a company is strictly against work relationships, one of the spouses can be dismissed, though it would not be a popular move and discourage transparency. “You can’t legislate against office romances or indeed falling in love, and an outright ban would be totally unworkable,” says Churchman.

It is imperative for a company to have a policy on office relationships and furthermore ensure that all employees, especially spouses, get familiar with these and abide by them at all times during work hours. This includes coffee breaks, lunch breaks, business trips, etc.

Personal life and Professional life

The need to maintain a professional relationship between spouses in the same office space is vital. Often, the hardest battle in managing office relationships is inculcating the need to strike a balance between personal life and professional life. According to a research “on flirting at work” conducted by Amy Nicole Baker, an associate professor of psychology in University of New Haven, and an author on workplace romance papers, it was found that people who frequently witness other colleagues flirting often feel less valued by the company and have a decline in job satisfaction. This feeling of discomfort can also lead to many quitting their jobs. In order to prevent others from being uncomfortable and thus putting oneself under the radar. 

Spouse In The Same Office: A Closer Look At The Implications for HR
“Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction”

Public displays of affection and flirtatious conversations can disrupt the working of the office and reek of unprofessionalism. It is essential to treat your spouse like a regular colleague within office hours and even in work parties, off-sites and other such events which are an extension to the office workspace.

Senior-Junior Relationship

In the case of a senior and subordinate getting married, the need for professionalism is critical in order to prevent conflict of interest. According to most office guidelines – it is necessary for the senior spouse not to be involved in the appraisal or evaluation of their partner. The two must not work together in the same department in order to curb the space for favoritism and nepotism within the workspace. There is also a potential threat to the security of confidential client information and the risk of information leaks.

To avoid the occurrence of favoritism, one spouse should be transferred to another department, and ideally, no couples should work together in the same department.

Divorce

The unfortunate scenario of a married couple splitting up can have deep repercussions on their work ethic, their behavior in the office as well as the office environment itself. The disclosure form should specify what would happen to both the parties in case of this occurrence. The way two ex-partners are treated in the office also deserves attention. They might act in a more isolated nature and may be unable to maintain good performance. This situation is a nursing ground for potential blame-game and office politics. This difficult period of the employees’ life should be battled with care and acceptance. They might not need advice and might need someone to listen to them in order to clear their mind and concentrate during work hours. In case of poor performance, they should be nudged towards the direction of working better and given gentle reminders instead of indifferent statements like “Your divorce is not our problem.”
Perhaps an Employee Assistance Program to help deal with such traumatic instances is worthy of consideration from employers.

Featured

Can Millennial Stress be Resolved by Financial Wellness?

Stress is an issue bigger than ever for millennials, who are rushing ahead with their worklife, finding little time to enjoy the intricacies of life. They are not only toiling themselves with projects, preparing reports and meeting targets, but also when off the work they busy themselves worrying about their debt, savings and expenditure.  India has been, off late, a very volatile economy with companies shutting down production and filtering out chunks of employees. As such millennials are forcing themselves to work in return for poorly paid salaries and unsatisfactory job environments. In most of the cases, they are not able to manage their day-to-day expenses and have to revert to debt; while in other cases are confused about their financial course.

A whopping 76% of Millennials say they are experiencing financial stress, up 23 percentage points from 2018, according to the PwC 2019 Employee Financial Wellness Survey.

Financial stress is the top contributor in affecting employee health and morale followed by their jobs and relationships. Matching your salary with your expenses is only the tip of the iceberg, when cash flow and debt issues add to the worries. Employees are worried that they are not able to save enough and will face or are facing a financial crunch. Let’s look at the major issues hounding today’s millennials in terms of finance:

Past concerns  

With higher education becoming more expensive each year, an increasing number of new employees enter the corporate sector already laden with the burden of huge debt in the form of education loans or personal loans. As per Workplace benefits report 2017, 40% of millennials say that they left high school and college unprepared for the real world. As such they look upon their employers for the necessary guidance and help related to a majority of topics around financial wellness. 18% of millennials want more help with their student loans.

In some cases, these debts may be gifted down from one generation to another. A son may have to pay off a home loan or some other debt incurred by his father. These circumstances dilute the finances and millennials find it difficult to lay away the stress.

Present concerns

According to the 2017 Workplace Benefits Report, a significant number of Millennials say they feel unprepared to manage their finances and need help with topics across the financial wellness spectrum, including saving for retirement (43 percent), general savings help (40 percent), paying down or managing debt (34 percent), saving for major expenses (36 percent) and budgeting (31 percent). 

Peer pressure, maintaining the status quo and lavish lifestyles often lead millennials to the brink of a financial crisis if they do not plan their finances well in advance. Many are highly ignorant about how to proceed with investments; banks or mutual funds, long term or short term, commodity or shares, and a lot more. About 43% feel that they require more help with investing, 40% wanting more information on how to save taxes and 21% feel that they want to save more. It’s an additional issue when they require funds in a lump sum for unforeseen expenditure or a major purchase. They either trap themselves in instalments or else fall in a debt trap. 63% of Millennials consistently carry balances on their credit cards and two out of five have trouble making minimum monthly credit card payments.

Future Concerns

Besides provident fund schemes, gratuity and a few other benefits, employees aren’t assured adequately about their future. They remain concerned about their retirement and pension, their children’s education, medical expenses and a lot more. Pension schemes are offered by insurance firms, but which one is best suited remains a matter of concern. Career opportunities and growth also impact future and present decision making. Not surprising then that employees, especially millennials, find themselves to be dependent on their employers.

Why should employers take up financial wellness programmes?

Financial stress not only impacts an employee on a personal level, but his working capabilities and mental faculties get impacted too. Stress can be behind severe health concerns that may lead to employee absenteeism, employee turnover, and dissatisfaction. The issue of financial health becomes of utmost importance to keep the solubility of the firm intact on one hand and to achieve common organisational goals on the other. As per a survey, an employee spends 12 hours on an average each month stressing about their finances. 

Bank of America Merrill Lynch report says that the lack of confidence in financial matters affects Millennials’ workplace behavior. On average, employees spend 3 work hours each week (12 hours per month) dealing with financial stressors.

A well thought of and structured wellness programme may act as a tonic for the employees’ financial health:

#1 Making an in depth study of employee concerns before finalising on the mode the financial programme is critical. Not everyone shares the same crisis, and not everyone will desire third party approvals or advice before taking decisions. A financial assessment is essential before you initiate the program and want it to succeed. This can be an eyeopener for those employees who may have been unaware of the causes of their financial stress and will make them ready to adopt the new financial course.

#2 Educating employees about financial health and other resources should be taken care of as well. This can be one through seminars, online courses, or even lectures and classes conducted by an expert or professional.

#3 The employees must be educated on healthcare costs as well. It doesn’t hurt to take this opportunity to promote healthier lifestyles as well. This can save them a lot in the long run. Group insurance schemes and health insurance schemes should be encouraged as a norm in the organisation.

#4 Financial debt management, especially the management of student loans, is another area of focus. Employers, if possible, could even consider taking it upon themselves to sort out the education loan or debt of the employees as a gesture of goodwill. This can be offered as an employee benefit as well. Executed right, the company can go a long way in earning the reputation of being the best in class when it comes to their employees’ welfare.

#5 Then comes the basic question of managing the current expenses such as installments, deductibles, premiums and other expenses. There are several paradigms involved in financial planning and it can be overwhelming for a millennial who has just been placed on his job.

Encouraging employees to take part in these programmes and letting them get involved through participation, and one on one discussion will assist them in reducing their financial stress. The overall focus of the employee can shift to organisational task boosting his productivity and overall efficiency. At the individual level, it will boost their confidence to manage their current expenses and plan for their future expenses in advance. Financial wellness programmes can, therefore, help in improving employee health and quality of life. A healthy and financially sound human resource can be an unending source of profitability and efficiency for any enterprise.

How India Moved Amidst The COVID-19 Pandemic: The Migration of White-Collared Professionals

Compiled By: Balakrishnan Narayanan
About Bala: He is the head of analytics at EarlySalary, with over 15 years of extensive experience within the banking and finance industry. At EarlySalary he is responsible for building machine learning and analytical capabilities within the risk, marketing, and customer analytics. For Bala’s passion for solving complex business problems, in 2019, he got listed in the top 100 Data Scientists in Asia at Machinecon, Singapore.

COVID-19 has no doubt disrupted almost all economies globally, and the livelihood of millions of people across the world. Like any other concerned enterprise, we’ve been curious to know the precise impact of this on our customers, and their response to the situation. But simply drawing conclusions based on concepts and ideas could turn out to be a wildly inaccurate move. To paraphrase the distinguished statistician – Edward Deming – without data, we’d just be another person with an opinion. So we, at EarlySalary, figured that this would be an ideal time to conduct a study on how much this ordeal has affected white-collared migrant professionals (individuals moving to other states or cities for their job), backed by real data. It’d help us draw useful insights and conclusions on our customers, and position ourselves to serve them in better, quicker and more efficient ways. We decided to analyze our active customers, spanning across multiple industries in an attempt to understand how people working in various key cities from various industries have responded and reacted to the COVID pandemic. Here’s what we found:

Customer Demographics

Ours being a service for salaried folks, our study focused on salaried individuals primarily from metro cities, and other key cities – like Bangalore, National Capital Region, Hyderabad, Mumbai, Chennai, Pune, Ahmedabad, Kolkata, and Jaipur, among others. These customers were predominantly from 9 industries, namely: 

  • IT & ITES, BPOs 
  • Banking and financial sector
  • Manufacturing and engineering
  • Healthcare
  • Manpower and recruiting
  • Insurance
  • Education
  • Retail, automobile and 
  • Online platforms/ startups
Covid-19

From the data we collected, we noted that the majority of the migrant professionals belonged to IT & ITES, manufacturing and engineering, and the automobile industries.

Here are some of the findings of this analysis

  • 22% of our customers were able to move back to their hometowns before the lockdown came into effect on the 25th of March 2020.
Covid-19
  • People moved all across the country: from an operational base of 19 cities, our customers have moved to over 200 cities.
  • Bengaluru, NCR, Pune, Chennai, and Hyderabad saw the most number of people moving away from the state. Delhi, Mumbai, and Kolkata retained most of their people.
Covid-19
  • Our analysis showed that young people, who are at most 25 years old, were the ones who migrated and moved the most. 
  • The migration rate of people who are 35 yrs or above is comparably less than half of that of 25 years or lesser. A fairly interesting trend.

City-wise Bifurcation of Customers’ Movement Patterns

Bengaluru

During this pandemic, customers moved out of the state, but primarily to other southern parts of India. The city also saw the most movement, which is likely due to most customers here being in the IT & ITES sector. Top cities of the movement included Mysore, Coimbatore, Chennai & Hyderabad.

Pune

The migrant movement happened only within the state of Maharashtra, to and from cities like Nashik, Mumbai, Aurangabad, Sholapur among others.

NCR

We observed movement to majorly towards the other Northern parts of India like Jaipur, Agra, Lucknow, and Kanpur among other cities but geographic spending is very large.

Hyderabad

Movement from Hyderabad has been mostly within 100 kilometers and within state limits. 

Chennai

Movement from Chennai has also been limited to southern India, although some movement across states has been noticed.

Our Thoughts

The age factor: It’s interesting to note that younger people exhibited a tendency to travel long distances during this period, as compared to relatively older folks. This may be because of the tendency of people to settle down and build a home in the same city as their work when they start to get older.

Localized activity: It is also interesting to note that a majority of the migration patterns are primarily restricted within set zones and regions. This points towards the tendency of people to not usually move to different zones of the country to seek job opportunities, but rather restrict themselves to one part of the country.

Sectoral insights: The IT & ITES sector features the maximum number of people migrating back to their hometowns. This may be, in part, due to the readily available option to work from home without facing as much hassle as some of the other industries. It also explains why cities like Bengaluru and Hyderabad, home to this sector, witnessed the most migration. Similarly, this looks like an opportunity for these towns to now become smaller tech hubs or mini-hubs in days to come. On the same lines, lenders’ ability to collect will now need to be increased from key metros to now to the entire length & breadth of the country.

The COVID-19 pandemic has induced severe changes in customer behavior, business outlooks, and credit patterns. The primary priority of the customers will currently be necessities and essentials as opposed to lifestyle upgrades. While customers continue to work from home, and businesses across all sectors looking for a way to enable remote working in some form or the other, to the extent possible, it is highly likely that the customer base will no longer be concentrated primarily in metro or key cities, but rather tend to be much more diverse and spread across all over the country. To all of them, and everyone else too – the EarlySalary team is here for you, at your service.

6 Expenses You Can Easily Finance With An *Instant Personal Loan*

Instant personal loan apps are re-sculpting the pillars on which the loan industry stood. One of the necessary commodities to thrive in any era is money. In a fast-paced time like today, where time is money, these loan apps are literally saving you opportunity costs by offering personal loans at quick speeds. Now a question may arise – can this money really be effectively utilized for your needs? Here are 6 expenses you can easily finance with your instant personal loan.

#1 Medical Emergencies

Instant Personal Loan

Medical emergencies can come knocking on our doors at any time. While healthcare continues to improve for the vast majority of people,  developments, the cost of medical treatment unfortunately also seems to be on an upwards trajectory. Expensive tests and pricey treatments can cost an arm and a leg. An instant personal loan can prove crucial in uncertain moments though, with quick cash disbursement offered by instant loan apps that provide personal loans for medical bills. For instance, back here at EarlySalary we take pride in being the protective shield for our customers during any medical crisis by helping them with cash loans as high as Rs 2,00,000. Getting a medical loan in India has never been this easy.

#2 Travel expense

Instant Personal Loan

Everyone craves for a weekend getaway from the daily worries of life, even when there’s a pandemic keeping us home. Trips, whether undertaken solo or with a group, are enriching with experiences that most of us cherish. You have the freedom to visit fascinating and exotic locations both nationally and internationally. But the cost of a trip can burn a hole in your pocket. Expenditure right from tickets, hotels, and accommodation to food and other rented accessories can be an exorbitant affair. Instant personal loans come to rescue here. By getting an instant travel loan online, you can easily solve all your travel-related money apprehensions. Also availability of extra cash through travel loans at low-interest rates can also support you in making your trip more lavish and soul-pleasing. 

#3 Appliances and Digital Gadgets 

Instant Personal Loan

You’re reading this on a digital gadget, of course. Whether it’s a smartphone, tablet, or laptop, all these categories of items have continued to evolve and improve rapidly over the years, with new exciting and enthralling updates becoming an annual event. But their obscenely high prices can deflate our desire to enjoy their intriguing features. Instant personal loan apps assist you hereby financing your expenditure to buy these essential tools. Now loans for digital gadgets can assist you in owning the latest model of your desired gadget. The advancement in technology has gifted mankind with multiple home appliances such as refrigerators, AC, TV for comfortable living. Additionally, kitchenware such as a mixer, oven, or microwave is now also accessible via loans. Quick cash loans for home appliances through instant loan apps help you in buying these gadgets as well. 

#4 Vehicles

Instant Personal Loan

Owning a vehicle equates is liberating, offering the freedom to be anywhere without relying on public transportation. Plus, a vehicle can greatly empower us in times of an emergency. Owning a vehicle is far from a luxury, but rather a necessity. Sure, the high prices of vehicles can leave you dejected and unmotivated. But instant personal loan apps jump to your aid here as well. Quick personal vehicle loans from EarlySalary offer the necessary funds to gather complete payment or the down payment on your favorite vehicle. 

#5 Education

Instant Personal Loan

A developing society and world require skilled and educated masses as its foundation. And of course, on an individual level, being educated can open portals to opportunities that markedly enhance the quality of life. Therefore, the parental desire to ensure the best available education for their child not only has emotional justification but a fairly rational basis too. But a limited salary income might hinder the realization of this desire. An Education loan becomes an end to your problems in such cases. Through instant personal loan apps, you can get student loans with flexible EMIs and use the loaned amount to deposit fees for your child. For instance, EarlySalary offers interest rates working out to be as low as Rs.10 per day.

Quick education cash loans can also be invested in courses or programs to enhance one’s skill set. At a time where being multi-skilled is an admirable quality, this virtue can be effectively utilized to unravel greater financial opportunities. 

#6 Daily and Monthly Expenditure

Instant Personal Loan

A monthly budget can be severely disrupted due to unchecked expenditures. For a salaried individual, this can turn excruciating if the date for a paycheck is far away and an empty balance stares back at you. The necessity to pay the monthly rent along with the need to buy daily needs like groceries and milk while facing a money crunch is agonizing. Informally borrowing money to fund these needs can be a difficult situation. At a point like this, you require a medium where you get easy instant cash loans with no questions asked. In other words, you require instant personal loan apps. For instance, at EarlySalary if you are eligible for loan sanction, we have a policy of no questions asked. The money is quickly disbursed to your bank accounts. You are then free to utilize your advance salary loan amount the way you like. 

EarlySalary takes pride in calling itself your month-end partner. Through our best instant loan app in India you can get your desired loan amount quickly and has selflessly. We provide quick personal loans to salaried individuals in cities such as Delhi, Mumbai, Banglore, Hyderabad, Jaipur to name some. 

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:
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Impulsive shopping habits hurting your budget? Introducing Shopping Loans

The idea of a satisfying shopping experience lies not in denying yourself of anything but in curbing the habit of impulsive spending. Many of us who use retail therapy to uplift our mood without thinking about money while shopping, later end up feeling guilty about ruined finances. 

Our emotions play a big role in our shopping decisions and this is what marketers around the world aim for when they work on promotional strategies. Hence, to resist and to keep more money in your pocket to fulfill your needs and wants, create a backup option to splurge when you want to. Here in this blog, we share strategies to help you beat the urge to spend mindlessly and balance your budget.

1. Plan the purchase 

The first step towards cutting down on unnecessary impulse shopping is staying within means with a list, and not randomly roam around the aisles looking for “bargains”. Understanding your sudden urges to refuse to buy something on an impulse will make you a smarter consumer and help you keep more of your money.

2. Differentiate between needs and wants

Whenever you are bitten by the shopping bug, ask yourself if the potential is a legitimate need or a want that can be fulfilled later. Spending decisions should be made with open eyes and mind. The golden rule is to remember that if you buy things that if you keep buying things that you do not need, you would soon end up selling things that you need. 

3. Time rule

Be patient and maintain a cooling-off period. If you see something that you like, make yourself wait for it. Take a walk, process all the information when your emotions have cooled and you’re thinking more rationally. If it would be for an impulse buy, you would forget about it, but if it was essential, you’ll remember it. 

4. Allot a portion of your budget to splurge

Budgeting depends on our saving behavior. If you successfully break the chain of hurtful impulse purchases that can cost you dearly in the long term, then you can comfortably give yourself a splurge budget. Clearance sales can be tempting, but no one wants to blow the monthly budget before the appraisals, would you?

It’s Ok to Make Impulse Purchases Sometimes

Impulsivity can become a problem if it starts to control your actions beyond rationality. However, sometimes it is fine to give in to your wants. With the growth in fintech, now you can easily avail an instant cash loan online. Online borrowing options such as a personal loan from EarlySalary can provide instant shopping loans without any documentation. 

Just download the EarlySalary app, upload your address proof, identity proof, and last three months’ salary slip. Your shopping loan will be credited in your bank account within 24 hours of your loan application. EarlySalary provides shopping loans at an interest rate as low as Rs 9/day and with flexible repayment terms and no prepayment charges.

Tie-ups with Amazon and Flipkart make your next online purchase affordable with flexible EMI options from EarlySalary. These loans can be used to shop anything ranging from fashion to smartphones, electrical appliances to gadgets, and a lot more. You can transfer your limit to the Flipkart wallet or Amazon Pay by redeeming gift cards, avail exclusive EarlySalary discounts during sales, and grab the latest deals.

Always borrow the amount that is sufficient enough to meet your current needs or requirements. In a world full of choices, it is easy to fall prey to decision fatigue and impulse shopping. Remember, each decision has a cost. Weigh your options and then put them in context!

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:
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Remote Working Tips For Parents Working From Home During Covid-19

With our world turned upside down due to arguably the worst pandemic in history, all of us are struggling to keep going with our lives. The national lockdown has changed the way everything around us works, with a stunning proportion of organizations now looking to formally adopt a work-from-home structure for the long term. Life in lockdown is the new normal.

Even though there is a huge degree of flexibility that comes with the option of working from home, there are several allied problems that come along with it too. With schools being shut down all across the country in the wake of this outbreak, most parents working from home have been struggling with managing work commitments along with effective parenting and taking care of other chores.  All members of the family are stuck within the confines of their four walls, with the work-life balance out the window. 

However, the problem may not be as bad as it may seem and can be tackled efficiently if parents working from home take the following things into account:

  • Your partner is your best companion 

In a lot of families, with both the parents having their work lined up, it is critical that a sense of understanding is achieved wherein the task of taking care of the kids is equally divided. With chores clearly demarcated, it will be easier to manage both work and the kids. Both parents can mutually decide upon different working hours which would mean that at least one parent will be available for the kids while the other can work peacefully for that duration. 

  • Having a clear routine for kids as well as work 

Understandably, this time is no easier for the kids. With the schools closed and exams postponed indefinitely, there is a sense of chaos that prevails even in their lives. So, it would be helpful to have a proper time-table or a routine in place for them so that they are able to retain some sort of normalcy while not being a hindrance to the parents’ work. 

As a consequence of the kids following a set pattern for their lifestyle, the parent can effectively take care of the kids without undermining your work commitments. This can be done by opting for work timings during the late afternoon or early evening during which the kids are asleep or busy with some work after having their lunch. This way, they will not come in the way of the work, which can be dealt with, swiftly. 

  • Share your concerns and chores with the children 

With little or no external help for managing day-to-day chores at home, managing efficient work from the home session is more challenging than ever. To make things easier, you could share a few of the household responsibilities with your kids. It can be something as simple as watering the plants in the garden or organizing their bookshelf. This will surely take off a little load from you while delegating a task to the child to keep them occupied. 

Parents working from home
“Try and explain to the children as and when you are engaged with some important work. This way, you’ll be able to manage both your commitments – personal and professional – better.”
  • Encourage a hobby 

This may be an ideal time for parents working from home to encourage their kids to develop a skill or a hobby. Reading, playing an instrument, gardening, or cooking, developing a positive hobby will help channelize the children’s energy in the right direction and have a positive impact on their lives as well. Today, several online courses are also available which can not only stimulate and maintain interest from young ones but also help in their overall mental development.

  • Communicate clearly 

Having a clear discussion with your family about the issues that may be arising at present is important, now more than ever. This will not only ensure that they are dealt with in the most efficient manner, it will also mean that you can expect understanding from your kids when it comes to your office work. Try and explain to the children as and when you are engaged with some important work. This way, you’ll be able to manage both your commitments better. 

Last but not the least, it’s important to acknowledge that these are unprecedented times. The world needs to heal and so does every one of us. Don’t think of this as the only opportunity you’d ever have to showcase your productivity. Kick-off your shoes enjoy the slower pace of life for a while. Also, make sure to use this lockdown as an opportunity to spend some quality time with your near and dear ones. Take a break from your work and strengthen those family bonds, or focus on personal growth!

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Unsecured Loans Are Surging in Popularity. Here’s Why

If you have been following financial news anytime in the past couple of years, it is pretty evident that unsecured loans are gaining back some of the popularity they used to have in the yesteryears. The case used to be that the unsecured loans of those times lured people with low incomes to apply for loans that they couldn’t afford to repay. High-interest rates and a cruel penalty for non-repayment characterized the unsecured loans of the previous era. This often led to a vicious debt trap, from which people weren’t able to redeem themselves. That’s all changed now, and unsecured loans are now more than just viable. They’re popular.

So what has changed in a few years that has caused such a massive surge in the popularity of unsecured loans? Let’s find out!

Formalisation of The Sector

While it is true that unsecured loans are becoming popular, it would be more accurate to say that unsecured loans from established institutes have become popular. Banks and financial institutions have considerably changed their stance on unsecured loans in the past few years, allowing an increasing number of people to afford cheaper loans than what was possible before. Unsecured loans from loan sharks largely still remain unpopular and are used only by people without proper awareness, especially in rural areas. However, with the slow, but the steady formalization of the unsecured credit sector, people have largely gravitated towards unsecured loans, particularly instant loans online.

Development of Credit Scores

The development of credit scores provided by Transunion CIBIL, also called the CIBIL score, along with credit scores provided by other organizations is one of the more important reasons behind the change in the attitude of banks and financial institutions towards unsecured loans. Of course, the risk component that banks face on unsecured loans is considerably high, especially without collateral or security that they could fall back on in case of default. CIBIL scores, and other similar scores, give banks an idea of how credit-worthy an applicant is. This has made the risk analysis for the banks much easier, and with a reliable score to fall back onto, created a much better environment for the institutions to start allowing unsecured loans.

The Boom of Credit Cards

Credit cards are definitely an extremely important part of our day to day lives. The ability to purchase and enjoy now, and pay later which is a phenomenon brought in by the credit cards. It greatly improved the consumer lifestyle and mindset at large. Previously, lifestyle upgrades, or any upgrades for that matter, needed a lot of planning and saving up over a considerable amount of time. This hindrance, all of a sudden, is non-existent, and thus people flocked towards credit cards, and by extension,  unsecured loans. The massive popularity of credit cards sometimes led to consumers sometimes overdoing this and ending up having to pay a considerable sum as interest (around 3% per month is the industry average). This considerably costly interest penalty calls for a warning on getting too friendly with credit cards, but they remain a useful instrument in our daily life. 

Fintech Solutions & Online Loans: The Best Type of Unsecured Loans 

With the rapid rate of growth in technology, it has become possible for people to share data instantly without geographical barriers. This also means that it is now possible to apply for loans, upload the necessary documents, get the loans approved, and get the money transferred to your bank account possible within minutes. This also means no is wasted in physically going to a bank. The best part, however, has to be the cheap interest rates offered by Fintech companies. EarlySalary, the best instant loan app in India, offers quick and hassle-free loans with minimal documentation requirements and interest as cheap as INR 9 a day. Fintech solutions like instant loan apps have definitely made a lot of lives easier, and we have already compiled a list of the best instant loan apps available in India. We are immensely proud to be one of the reasons that unsecured loans, and by extension, people’s lifestyle has grown in our country.  

It is currently a strange world, with a lot of panic and stress caused due to the COVID pandemic. However, we are happy to announce that our services will continue running 24*7 for everyone in need of them. EarlySalary operates entirely online and will continue to support you throughout this dire period. Feel free to contact us if you’re in need of any financial assistance.

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What Will Blockchain Do To The Credit Market?

Compiled By: Anil Sinha
About Anil: He is the Head of Engineering at EarlySalary, with over 15 years of experience, Anil is passionate about technology and has strong Leadership skills driven by core human values. He has worked on various techno-functional leadership roles with hands-on code and delivered complex products in the space of distributed data processing, especially related to trade processing and risk analytics.

Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential
-Marc Kenigsberg, Founder Bitcoin Chaser 
Referred to as the next big thing after the internet, blockchain technology has amassed an ardent following across the globe, and Marc Kenigsberg rightfully substantiates the immense potential of this phenomenal technology. The rather attractive adoption curve of cryptocurrencies, especially by Bitcoin, the bellwether of the crypto industry, is a testimony to the revolutionary capabilities of this new generation miracle. 

The blockchain is often referred to as a ‘disruptive’ technology. The experiments on the integration of the blockchain in different industries, such as healthcare, insurance, telecom, or real estate have exhibited its potential in breaking traditional methods and establishing a new reformed way of operating. The results, early on at least, have been promising. They indicate the inevitable creation of a more transparent and decentralized model across industries. Of course, this is completely distinct from the ongoing private and centralized systems in place. 

One of the key industries where the blockchain-aware, and the enthusiasts, are expecting a paradigm-shifting change is the credit industry. Over the years, the credit market has undergone evolutionary (and revolutionary) changes with new innovations, and regulations in response to those innovations. In my view, the shift of the credit market from moneylenders to banks, which in turn work under the supervision of governments and global organizations has sculpted the modern economy. The statement that credit is a key component in the smooth functioning of the economy is wholly true since any economic turmoil is always felt first in the credit industry. 

Before we discuss the extent of impact blockchains will have on the credit market, we need to understand the current scenario in the credit industry. The credit market has undergone a significant transition from its early stages. The evolution of credit gave birth to the bond market, the credit-card market, and commodity loan markets such as a car or home loans. Their presence is critical since these spinoff financial industries keep modern economies afloat.

The evolution of the credit market has propelled the expansion of other industries as well. The intertwined nature of industries amongst themselves is therefore obvious. If integrating the blockchain with other industries delivers positive results, we can safely expect that the effect on the credit market will be equally positive. 

Coming to the blockchain-credit market association, I can’t imagine the kind of chaos that would ensue if the credit market based on any virtual internet-based system malfunctions and goes offline. Or a scenario where a malicious virus incision in system tampers records. The successful journey of cryptocurrencies so far indicates zero incident of downtime. This is by design since the blockchain is decentralized. Plus, the immutable nature of the distributed ledger system safeguards everyone’s data. Blockchain technology offers a reliable system for the credit market to operate. This is crucial, since a downtime, or any major fraud, can initiate a global market crash. In light of these features of blockchain, here are a few trends we might witness with a merger of blockchain technology with credit market:

Block-chain in Credit Market
Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential “
-Marc Kenigsberg, Founder Bitcoin Chaser 
  • The incorporation of blockchain technology in the credit market could catalyze growth in the adoption of cryptocurrencies. Since paper money can’t be loaned in a blockchain network, virtual money will triumph in a post-blockchain-based credit industry.
  • Perhaps an outcome I’d be most excited about – the blockchain, by nature of being decentralized and immutable, could help us with insights into borrowers, their credit-worthiness, and much more. If borrower data were to be stored on blockchains, transparency would be consistent, and instant, for all lenders. As a result, delinquencies may fall, and interest rates may stabilize to more attractive levels as systems become efficient. 
  • The far reach and spread of blockchain users across the world may lead to mass participation in an international credit market. Borrowers would be relieved of the high-interest rates that may have persisted locally, since availing a loan internationally would now be possible.
  • Approval of credit requires collateral to proceed.  Once the credit is allowed through blockchain, the required collateral can be made available to the creditor on the distributed ledger through tokens. This system will give rise to the tokenization of real-world assets. 
  • In the post-blockchain-merged credit market, we’d be likely to witness a rise in the private credit sector. Users with surplus cryptocurrencies would be able to credit them to other users, guided by smart contracts – automated agreements that do not require trust between either party. We may witness a shift of the credit market from a regulated industry to an increasingly privatized sector.
  • With a surge in a privatized credit market, fluctuations in the interest rates charged may be a common scenario. The decentralized nature of blockchain eliminates the presence of regulated bodies, which could result in a surge of rates of interest in domestic markets due to the lack of governmental regulations. Of course, governments may be proactive and act.
  • One of the key lessons from the 2008 housing bubble was the need for a transparent system. Operating the credit market via blockchains will lead to the availability of data on all the history and ongoing transactions, on a level never seen before. This could be a turning point for the banking sector which has conventionally worked behind closed curtains. 

It is, of course, too early to confidently estimate the extent of influence this technology will have on the credit market. We must not forget that blockchain tech is still maturing. The manner in which it will unravel itself can border on speculatory at times. But since the credit markets are often the soul of economies, a wrong step could host major discomfort for the global economic ecosystem. I do strongly believe though – what is the use of tech advancements if they don’t liberate us from existing traditional systems and offer us a higher quality of life? A thoughtful and tested transition of the credit market to the blockchain can be a crucial evolutionary step that can change the face of the modern credit industry.

EarlySalary carES for Daily Wagers: Join Us and Donate Now

COVID 19 has caused extreme financial problems for even those with a steady income. The pangs of this pandemic have left no one, affecting all without discrimination of age, race, caste, gender, or social status. It certainly hasn’t differentiated between the rich and the poor, affecting everyone without mercy. While most of us are privileged enough to have some levels of financial stability to see this scare off, most daily wagers, who depend on the daily work for survival are left without anything at all. Food and other essentials elude the grasp of the underprivileged, leaving them to fight a much bigger war than the pandemic, the fight for their lives, all by themselves. EarlySalary recognizes and understands the dire straits of the underprivileged, have partnered with GiveIndia and CRY (an NGO) to help lead the fight for their lives. 

ES CarES

The Process

It is absolutely necessary that you understand how your funds will be utilized before you start donating. 

  • Our partner GiveIndia, receives profiles of beneficiaries and their needs from several trusted nonprofit partners and networks
  • In order to further verify the authenticity of their needs, GiveIndia further verifies the profiles and the validity of the monetary needs independently.
  • Wherever and whenever feasible (given the current situations), GiveIndia will also conduct physical verification.
  • Funds received are then distributed by our nonprofit partners, who will carefully adhere to GiveIndia’s diligence policies.
ES CarES

We also know it is not fair for us to put the entire burden of saving the needs of our benevolent donors. We will be with you, every step of the way. EarlySalary, as a donation incentive, will donate 50% for every INR 100 that you donate (a maximum of INR 100). Every single rupee will make a difference, and it is important to understand that no donation is too small. This may be one of the most overused proverbs, but it is overused for a reason. It is true. Little drops doth make a large ocean. You have the power to create a positive impact on the lives of many daily wagers, who are depending on your donations to survive. All donations made through this platform are tax-exempted under section 80G & 501(c)(3) of the Income Tax Act, 1961.

How Much of An Impact can I make?

For every INR 7000 that we gather and donate, one family can survive in a tier 1 city for a full month. Similarly, a family in a tier 2 city can survive for a month with INR 5000. Every single penny that is donated is to achieve a singular purpose – to help the daily wagers pay for their basic needs, like dry ration and other essentials. The sudden loss of their income because of the Coronavirus pandemic can be slightly alleviated with every single rupee that you donate. All funds raised from this campaign will go exclusively towards achieving this purpose, and no charge or fee is levied. Save the lives of thousands of daily wagers and donate now! Our current objective is to raise INR 30 Lakhs and help people from across the country from the negative impacts of the pandemic.

I Want to Make a Donation! Tell Me How

Great, you’re already past the first and the most difficult step. You can save the lives of thousands of people from the comfort of your home. All you have to do is head over to the EarlySalary Website or the EarlySalary App and select the amount that you want to donate. Follow the on-screen instructions and done!
“Congratulations, you have taken a significant step in the battle against the cruel pandemic.”

ES CarES

You can easily keep track of this campaign as we will continue to share the progress on our socials-
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Any feedback and suggestions are always welcome!

Mother’s Day During Quarantine: Consider Financial Gifts

On many occasions, your mother may have advised you about innovative ways to spend and save money. Her experiences would have taught you about the importance of financial backups, and the value of giving back. There is no way that you can ever pay her back, but on this Mother’s Day, you can express your gratitude in the form of some financial Mother’s Day gifts – to maximize returns and create capital safety. 

In times like these, if you’re going to be spending Mother’s Day during quarantine with her – this is a great opportunity to assist here on everything – from household work to even important decisions that require your time. If you’re not quarantining with your mother though, or frankly – regardless of it – online financial gifts are an ideal way to celebrate. With uncertainty around lockdown and Covid-19, financial gifts are only a few clicks away. Surprise your mother this Mother’s Day during quarantine, with some of our suggestions on financial gifts, and celebrate this relationship!

  • Buy Her Health Insurance

A health cover is possibly the best Mother’s Day gift that would hold long-term value and reduce financial burden. With medical inflation growing at 12-14% and uncertain times like the one we’ve been going through, the cost of healthcare can eat away at anyone’s life savings. Old age demands not just togetherness, but also adequate medical care and judicious financial planning. Health insurance can be especially expensive if your mother has crossed 65 years and it may not be a comprehensive plan.  

You may also include her in your employer’s cover if you are a salaried professional. Generally, group covers are offered at subsidized rates. Premiums are mostly on the higher side for seniors, hence, covering both your parents can reduce your cost for insuring your parents.

  • Immediate Annuity Plan

If your mother has recently retired, then this might be the ideal Mother’s Day gift this year. An immediate annuity plan is a type of pension product. All you need to do is pay a lump sum and the insurer pays a fixed pension to her for the rest of her life. There are various insurance companies with different payout plans such as monthly, quarterly, half-yearly, or annual pension payments. You may choose the one that suits her requirements the most. 

Mothers’ Day
  • Fixed Deposits

The safest financial gift for your mother is the traditional fixed deposit. FDs for senior citizens not only offer higher interest rates but also low or zero tax burden. The interest from these FDs can be a regular income source and may also be liquidated with guaranteed returns. All options such as premature withdrawal, nomination, loan, etc. are available on FDs. 

  • Create and Maintain their Portfolio

Back in the day, few parents had limited investment options and fewer had enough financial perspective or knowledge. Just like most in their generation, and we say this without meaning to stereotype – mothers may generally be risk-averse and likely to have very little knowledge about the modern financial instruments. You can create a portfolio with the right balance between equities and debt. You may include liquid funds for emergency, liquidity requirements, and for a smooth income flow. Debt investments should take up a larger fraction of the portfolio to weather against the volatility of the equity market.  Invest a small fraction in equity to combat rising inflation. After all, you should not put all eggs in one basket. 

With growing age and potentially limited income, it may be hard for mothers to look for investment avenues that can maximize the returns of their retirement corpus and combat inflation. Help her build new saving habits and help her realize her dreams. A well-planned financial Mother’s Day gift during quarantine is the best way to help her open a small business, fulfill her bucket list, or even complete her shopping wishlist. Gift your mother, financial stability and celebrate Mothers’ Day with a fresh spirit. 

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Kickstart Your Personal Growth During This Lockdown

An unprecedented worldwide lockdown is a history in the making. Extremely rare events such as this are witnessed only once in a lifetime or two. Although this is a very difficult time, with the Indian lockdown being extended once already to 3rd May 2020 and on the verge of being extended again, it is time we adapted to this environment. By adapting, I mean we must stop worrying about when this will all come to an end and start thinking about ways to get through this period better and unaffected as much as possible. 

There could be no better time for some personal development and growth than this. While many do realize this, some are confused as to what to do. Besides spending quality time with your family, completing household chores and just unwinding from the stress of work, here are some of the things you could do during the lockdown to improve yourself as a whole:

E-Learning

One of the most affected sectors due to the COVID-19 pandemic is the education sector with millions of students worldwide losing valuable school time and missing out on lessons. But, there are numerous ways to access their lessons online.

If you are a student or have kids who have missed lessons due to the lockdown, this is a great time to catch up and maybe even do some extra learning. Some great online learning platforms like Extramarks, Toppr, and Pearson offer amazing online classes for a multitude of competitive exams and grades. Online platforms like edX, Coursera, and Udemy offer online courses from top universities from all over the world for free. Utilizing these platforms to develop your skills and learning new things is a great way to reinvent yourself for the post-pandemic world. Shakira recently completed a philosophy course from the University of Pennsylvania during this lockdown. 

Other platforms like Skillshare, Brilliant, and Lynda offer you, online classes, to improve or learn new skills like design, art, photography, and filmmaking among many others. 

Reading

A fairly often repeated suggestion, but hear us out. Reading is exceedingly one of the most underrated activities nowadays as most remain hooked to TVs, phones, and computers binge-watching TV shows one after the other. This was our number one way to kill time even before the coronavirus and lockdowns. Reading is a great way to broaden perspectives and writing skills, while also learning a myriad of things you probably otherwise would not have. You could call it the indoor equivalent of traveling. Once you develop a reading habit, it will be one of the most enjoyable activities on any given day. Reading is also a great way to unwind and relieve stress. If you find reading through a book difficult, apps like Audible provide you a wide range of audiobooks to sit back and listen to while sipping on your evening coffee. 

Network digitally

If this is not the best time to utilize social media, there will never be any other. Using the internet and the plethora of social media platforms like Instagram, Twitter, and WhatsApp to socialize and keep in touch with your friends and family is a good utilization of your lockdown time. This is also a great way to start and develop relationships with acquaintances and new people and get to know them before you can meet them in person post the lockdown! Seeking out mutual friends and starting up a conversation with them could most definitely lead to new friendships. Catching up with old friends through social media is another great way to spend your time during the lockdown.

Personal Growth

Another great way to network digitally with friends or to make new friends is through the Houseparty app. This app lets you play several fun mobile games on your phone with your friends while also being on a video call with them simultaneously. The app also lets you join other random people and interact with them through video calling and games. This is as close as you can get to hanging out with your buddies in these troubled times! 

Popular online multiplayer games like PlayerUknown’s Battlegrounds Mobile(PUBGM), Catan, and Ludo King are fun ways to spend some time with friends and family. 

While some see this as a painful period to get through as quickly as possible, others consider this a great opportunity for self-development and personal growth. We have to realize that this is probably the most amount of time we could get to spend by ourselves in our lifetime. Making the most of it like a true opportunist would certainly help us in the long run in tremendous ways. 

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Covid-19 Has Been A Great Opportunity To Really Put Remote Working To Test

The ongoing Covid-19 crisis has restricted mass gatherings to curb the spread of this viral infection. To combat this, most offices and organizations have shifted to remote working structures to maintain business as usual. But while may have to adjust to the reality of lockdowns being the new normal, for a key number of global organizations and startups, remote working had always been a significant part of their office culture. Their successful work culture and systems are reflected in their attractive growth and success stories. Therefore a key question arises – should teleworking systems be adopted in place of the existing office setups? The task of determining the feasibility of this transition from traditional workspaces to setting up remote working teams falls on the shoulders of the HR function. Therefore it is critical to acquaint ourselves with ins and outs of remote working. 

What are the advantages of remote working?

Transitioning from traditional in house office systems to remote working is a paradigm shift. To get an assessment of all the pros involved is an understandable and justifiable need. Let’s see how telecommuting impacts your organization and workforce:

  • Increased Productivity

A Stanford study involving 16,000 call center employees indicated that remote working resulted in an increased productivity of 13 percent. Remote workers seem to get much more work done than their counterparts working in an office. The flexible schedule, freedom to take a break on will, and absence of long commutes to work aids in an enhanced quality and quantity of output. Added to this the lack of distractions caused due to impromptu meetings and conversations with coworkers makes for an ample of time to complete an assignment. A 2018 global survey by Owl Labs showed that individuals who worked remotely at least once a month were 24% more likely to be productive and happy. 

Remote working
  • A healthier and happier workforce

Being a part of the HR workforce, we are not unfamiliar with the high amount of stress levels caused by challenging interpersonal relationships and office politics. These not only account for an unhealthy work environment, but also for a disdained workforce. Also, the current office culture and systems are catalyzing the sedentary living of the employees. The long to and fro commute and hectic work routines drain employees on a daily basis. Remote workers, on the other hand, are shielded from the negative impact resulting from office rivalries and gossiping. Studies also indicate that with more time available, remote workers take better care of their health right from healthy eating to sufficient sleep. In a 2020 analysis by FlexJobs, 86% of people felt that working remotely reduced stress. Therefore remote employees enjoy a much happier and healthier lifestyle. 

  • Cost savings

In today’s time, the cost of setting up and working from an office space can be exorbitantly high. Obscenely expensive rates of real estate and elevated expenses in operating and maintaining offices can drain out an organization’s economic resources. Telecommuting, on the other hand, does not require the above-mentioned expenses. Therefore hiring remote workers can save excessive money. In a 2015 study by State of Telecommuting (US employee workforce), employers having teleworking work systems saved $44 billion in total.

  • Availability of large talent pool

The normal hiring procedure involves scouting for potential workers in local regions. With coaxing and enough money increment, we are able to convince workers to shift to another city to be a part of the office workforce. But still, this restricts our access to the local talent pool only. With teleworking this is not the case. You have an opportunity to hire from the global work pool. This results in an increment in the accessibility to the talent available. Also, a multicultural workforce promotes an enhanced level of bonding amongst employees. 

All in all teleworking can prove beneficial in terms of both the quality of the workforce and value generated by an organization. Before setting up a telecommuting wing of the workforce, as an HR representative, it becomes crucial to know about the future of remote working. 

The Future of Remote Working

Global analyses of existing remote working based organizations indicate revolutionary changes in the existing workspaces. In their 2019 future workforce report, Upwork showed that 73% of all company departments will have remote workers by 2028. Therefore before organizing a remote working team, it is necessary to update ourselves with upcoming trends and systems

  • A key number of companies including A-league global organizations will switch on to hybrid models of remote working. This involves a transition in phases to test and experiment with remote working for team feedback based on the challenges faced. 
  • The shift to an online work system has to be supported by necessary applications and tools to tackle needs like mass communication and personal work channels. Existing teleworking based companies are using indigenous applications to tackle these requirements. We can witness a rise of applications catering to these needs which will aid in establishing a better remote working environment.
  • Blockchain technology presents the means necessary to successfully run a telecommuting workforce. Its peer to peer model and availability of all the data shared on the platform can make it an ideal technology to rely on. For employees hired on a contract basis, smart contracts can present an ideal option to ensure smooth functioning. In the upcoming months, enterprises may want to be on a lookout for upcoming blockchain platforms specifically catering to work systems. 
  • Working in traditional offices reportedly induces demoralizing sense in generation-Z. According to Forbes, a regular 9-5 is not an ideal working condition sought by Gen-Z. Mass scale adaptability of remote working will, therefore, witness a rise in any workforce constituting Gen-Z professionals. Since a key workforce consisting of gen-Z and millennials will take over the baby boomers, establishing systems that are ideal for the upcoming workforce is a lucrative choice. 

Key Challenges to Tackle in a Remote Working System

To wholly realize the positive impact of remote working on our organization, it is crucial to know various challenges experienced by existing teleworking companies. The HR function will need to counter these hindrances to successfully run our remote working systems.

Remote working
  • Lack of proper communication channels:

The task assigned to the remote workers needs to be explained effectively. An absence of in-person interactions in emergency situations results in delayed work submissions. This necessitates the requirement of issuing detailed work guidelines and establishing channels for quick and easy communication. Systems and protocols to follow in case of emergency situations should be built and clearly communicated. 

  • Trust factor:

It is crucial to hire individuals we trust and then trust the employees we hire. A relation of mutual trust should be proactively built with our employees for better work culture and emotional health. This results in an increased commitment to the organization’s goals.

  • Lack of human experience and loneliness:

Since remote employees work from their homes, most of them are bound to experience a certain level of loneliness. An absence of human contact can take a toll on their emotional and mental health. The job, therefore, falls on our shoulders to establish a culture where bonds are encouraged and partnered assignments are promoted. Although video conferencing establishes a human connection, it lacks the essence of human contact. Therefore remote workers should be encouraged and adequately funded to work from co-working spaces where they can socialize and network. 

It is important to build a teleworking system that adequately counters these obstacles. We can learn from the existing remote working based companies such as Trello, Zapier, and HotJar, whose online guides on successfully running and managing a remote working workforce share useful methods and structures to build upon your own telecommuting systems. Executed correctly, organizations can retain top talent and also save expenses on setting up traditional office spaces. The Covid-19 situation is an ideal scenario to understand the impact of remote working on balance sheets. Of course, active feedback needs to be sought from our employees on such models and workflows while we iterate and improve. The integrated result of your efforts and feedback by employees will decide the course of your permanent shift to remote working. 

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