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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 to get a pre-approved Personal Loan?

Summary: A personal loan is provided without any security; therefore, you would not have to submit collateral for a pre-approved personal loan. This article will discuss how to get a personal loan pre-approved by the lender.

Introduction

When you fall under a financial crunch, you can contact your lender for a pre-approved personal loan facility. Banks and financial institutions provide reliable customers with good credit history. Under this, your lender pre-approves your personal loan before you even apply for one.

What is a Pre-Approved Personal Loan?

A pre-approved personal loan is a financial offering that banks and financial institutions provide for their preferred customers. Lenders offer pre-approved personal loans to existing customers who have been associated with them in some way or the other. Customers who have availed of loans from their lender in the past have the best chances to get a pre-approved personal loan.

If you have an existing or paid-off loan with a lender, your relationship with them will influence your chances of getting a pre-approved personal loan. Your credit score and loan repayment history must be favorable for the lender to consider you for a pre-approved loan. Such loans have been made popular by banks for increasing the rate of quick personal loan products in the country. Following are some features of pre-approved personal loans:

● Pre-approved personal loans have speedy disbursal. This is because you are already a bank customer and do not need to provide any documentation or security.

● Documentation is non-existent as the lender already has everything it needs to know about your personal and financial past. Banks have a database that contains all the important details about their existing customers.

● A pre-approved loan has all the properties of a personal loan. Like personal loans, a pre-approved loan is also highly flexible in repayment tenure. You can choose your preferred repayment tenure as well as EMI volume.

● Pre-approved personal loans can be applied online, making the entire process quicker and simpler. You can visit the online portal of your preferred lender to apply for a pre-approved personal loan.

● Interest rates at which such loans are granted are comparatively lower than usual personal loan rates. This is because lenders come up with special interest rates for their existing customers. Interest rates are low pertaining to the low-risk profile of reliable borrowers.

Steps to Avail a Pre-Approved Personal Loan

While availing of a pre-approved personal loan, you must be aware of the process in detail. While easy to avail, a pre-approved personal loan requires specific requirements per the lender. Every borrower needs to follow a set of steps to apply online.

The steps to avail of a pre-approved personal loan are as follows.

1. The first step is to visit the lender’s official website for the loan application. Although your loan is pre-approved, you have to fill the basic application form, which requires you to visit the online portal.

2. As you are an existing customer of the lender, you can also log in to your net banking account for faster processing.                                                                                                                                

3. Locate the application form to be filled to avail of a quick personal loan. The application would require you to fill in your personal and financial details. You can get an application form at your nearest branch as well.

4. The next step would be to submit the form online or in person. Make sure not to skip any necessary fields in the form.

5. Now, you have to choose the mode of repayment for your personal loan. A pre-approved personal loan gives you the facility to select a payment mode that is most suitable to you.

6. The next step would be to select your preferred repayment tenure.

7. After completing all the formalities, the bank will credit the sum assured in your account.

Eligibility for a Pre-Approved Personal Loan

You have to follow the lender’s eligibility criteria to avail of a pre-approved personal loan. The conditions for eligibility are discussed below.

● First and foremost, you must have a good relationship with the lender. This means that your credit history with your bank should be favorable. The past loans and borrowings under your name must be repaid on time for you to qualify for a pre-approved personal loan.

● Even if you do not have a very high credit rating, the lender still could process your loan. If you have a sufficient balance in your account, the bank might consider you for the pre-approved personal loan facility.

● With a stable and regular income, you can be eligible for a pre-approved personal loan. Banks prefer applicants who have a sustainable source of income. You should have sufficient monthly earnings and a positive debt-income ratio to qualify the conditions for a pre-approved personal loan.

Most banks and financial institutions follow all the points mentioned above for eligibility. Your choice of lender would have their own set of qualifications, but they all would fall broadly under the points mentioned above.

Documentation for a Pre-Approved Personal Loan

Usually, you do not have to submit any documentation for a pre-approved personal loan. However, as a new customer with a good credit score, you need to submit the following documents to avail of a pre-approved personal loan.

● Identity Proof: Aadhar card, PAN card, Voter’s ID card, driving license

● Address Proof: Electricity bill, passport, Aadhar card, Voter’s ID card

● Income Proof: Last three months salary slips, Form 16, Balance Sheet, P&L Account and last six months bank statement

● A duly filled application form with your signature.

● Passport-size photographs

● As a bank or financial institution employee, you also have to submit your employee ID card.

Conclusion

In conclusion, a pre-approved personal loan is an excellent facility for people who have paid off their previous loan on time and without any security. Using the information mentioned above, you could also avail of a pre-approved personal loan from your lender with ease.

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What is MCLR Rate? How it affects a Loan?

Highlight: Find what the MCLR rate is and how it can impact various loans. Know how MCLR impacts your best personal loans if they show changes in interest rates.

The MCLR or the Marginal Cost of Funds based Lending Rate system owes its introduction to the RBI or the Reserve Bank of India.  Launched in April 2016, this new MCLR rate lending system is a modified version of the old regime for base rates. Here, the new interest rates are calculated based on the repo rate and the bank’s interest rate on customer deposits. With the new rules in place, commercial banks are now obliged to set up new benchmarks for internal rates for lending based on the marginal cost of funds.

Need for MCLR

With the old base rate system for banks, whenever there were changes in repo rate, the banks were reluctant to align their interest rate promptly as per the change. Therefore, though RBI introduced rate changes periodically, banks were not keen enough to change their own lending or deposit rates.

With the introduction of the MCLR, the banks have to adjust their interest rates as per their risk factor for various customer segments. There are different benchmark rates for different loan tenures. So, first, the banks set rates for terms starting from 1 day or one month to 1 year. Based on them, the banks can also charge interest rates for more than one year.

What do you mean by the MCLR Rate?

The Marginal Cost of Funds Lending Rate is the minimum rate for lending below which a bank cannot lend or issue a loan. Here ‘marginal’ means additional or a change or margin in the current state, economic sense. The MCLR rate is thus based on any changes in the banks’ marginal cost conditions.

The MCLR is revised monthly based on the repo and other borrowing rates. Banks generally cannot lend below the MCLR, except in a few exceptional conditions.

In the following conditions, banks can lend below the MCLR:

● For loans against deposits 

● Loans to bank employees of the respective bank

Type of MCLR-linked Loans

● With the latest RBI guidelines, all floating-rate loans sanctioned after 01.04.2016 will follow the MCLR, including their credit renewal. Existing borrowers with floating-rate loans can also switch to the MCLR rate as per the options given. These floating-rate loans include home loans, corporate term loans and loans against property.

● MCLR is related to banks, so that any floating interest rate loan sanctioned by them will be linked to the MCLR. Some banks link their educational loans and auto loans with the MCLR. So, if you have a floating interest rate for your best personal or car loan, it will also be connected to MCLR.

Does MCLR impact personal loans?

Personal loans are a good option for short-term liquidity. It is important to note that the MCLR will not affect your best personal loans with a fixed interest rate. The variable rate of your best personal loans will become more affordable in the long run with lower EMIs.

Components of MCLR Rate

The MCLR rate is composed of different components. They are as follows:

● The marginal cost of funds that includes return on net worth and the marginal cost of borrowings

● Operating costs incurred by the banks

● Negative carry due to cash repo rate. All banks have to pay a cost to keep their reserves with RBI, which constitutes this carry.

● Tenor premium or the risk premiums charged by banks for long-tenure loans.

The banks charge the marginal costs as per the new guidelines set by the RBI based on these factors:

● Savings, current, term, and foreign currency deposits interest rates.

● Borrowings that include the short term and long term interest rate, and the repo rate

● Return on net worth

The marginal cost of funds, repo rate, and deposit rates determine 92% of the MCLR, while the return on net worth comprises the remaining 8%.

* 18% GST will be applicable on banking services & products w.e.f 01 July 2017.

Impact of MCLR Rate on Loans by Banks

The various loans offered by banks will have the following impacts given the MCLR.

Regulated Interest Rates – With the old base rate lending system, the banks were quick to increase interest rates on floating-rate loans whenever there was an increase in rates, as announced by the RBI. However, when the RBI cut down the interest rates, they did not slash the rates with the same promptness. This resulted in a discrepancy in the interest rates. With the introduction of the MCLR rate, banks need to regularly change their rates as per changes in marginal cost conditions.

Impact on the spread – Before introducing the MCLR, banks charged low spreads for low-interest rate loans. This would initially attract many customers, but later, banks unreasonably increased the space without valid reasons. This resulted in increased interest rates for the customer, as there was an increased spread even if the base rate was not increased.

With the MCLR system, banks are mandated to fix a spread while sanctioning the loan. This spread will not be subject to increase until there is a change in the customer’s credit profile. Also, banks are required to reset their loan interest rates at least annually.

Transparent Loan Pricing – The MCLR system has proved to be more transparent from the customer point of view with a special price of floating-rate loans. The banks are now required to set the spread when sanctioning the loan without unreasonable increase during the loan tenure.

Bank Margins – The MCLR rate brings about a more fair and transparent system for interest rates and loan pricing in the case of variable interest rate loans. RBI requires banks to publish their lending rates every month for a minimum of five different tenures. This has to be followed strictly by all banks. Banks can now not increase the spread they charge customers during loan tenures.

Exemptions for MCLR Loans

● MCLR rate arrangement is only applicable for banks. It does not apply to loans taken from Non-Banking Financial companies and other financial institutions or NBFCs like, HDFC, LIC Housing Finance, DHFL, Indiabulls, etc.

● Banks need to apply the MCLR system for all loans except car loan, fixed-rate home loan and personal loan with fixed interest rate.

● Loans given by banks under the Central Government or State Government schemes are also exempt from MCLR, where the banks charge a specified interest rate as per government directives.

Conclusion

As applicable, banks cannot charge their lending rate below the MCLR rate for any loan maturities. However, most secure loans, Government of India special loan schemes, loans to the bank employees and fixed-rate loans for more than three years are exempted from MCLR.

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Start Offering Financial Wellness Program To Your Employees

Highlight: Get to know the top 7 reasons your employees need a financial wellness program. Read till the end why a financial wellness program can improve your business.

59% of employees report being satisfied with their employers when they receive access to some sort of financial wellness program from them, according to a Prudential report. 

This isn’t surprising. Superior work-life for teams ultimately results in better bottom lines for enterprises. 7 out of 10 employees say that their loyalty towards their employers increased after getting access to financial wellness programs. 

What is a Financial Wellness Program?

Financial wellness technically refers to a person’s improved financial health due to the absence of any financial stress. A PwC Employee Financial Wellness Survey reported that 63% of employees suffered from increased financial stress since the start of the pandemic. Bonuses, investment workshops, discounts on bills, etc. are some ingredients of a good financial wellness program.

In this post, we will give you a comprehensive list of the top 7 reasons why your employees need a financial wellness program.  

  • Increased Retention Rate

72% of employees report that they would leave their current employers if they find another employer providing them with a financial wellness program. A lack of financial wellness support from employers is one of the biggest reasons for this trend. 

A fairly reliable strategy to increase (or maintain) your retention rate is to make employees feel valued. A well-planned financial wellness program helps them feel valued by the company. Having a financial wellness program will help your employees be more loyal to you. 88% of employees have already initiated or have plans to start financial wellness programs in their companies. 

  • Happier and Healthier Employees

42% of employees face distraction at work due to financial issues. With a financial wellness program, not only do you make them happier and healthier but also save your enterprise from facing a significant amount of loss.

Employees spend 13 hours a month at work on average stressing over their financial problems. Those hours can cost employers up to a whopping $1,900 yearly loss per employee. On the other hand, financial wellness programs that include, say, health insurance or subsidised regular medical checkups, directly contribute to elevating and maintaining employee health. In other words, a financial wellness program not only keeps employees mentally stress-free but also truly healthy, by helping them to be debt-free.

  • Improved Performance 

72% of millennials remain stressed due to financial problems at work. Gen Z and Gen X are not very far on this metric, at 62% and 68% respectively. At the same time, 51% of employees want to make their own financial decisions but look for someone to validate them. About 36% of employees actively look for elaborate financial advice. 

A financial wellness program doesn’t necessarily include direct financial support from employers. Giving access to financial learning methods like workshops and seminars can provide employees with the financial advice they are looking for. 

  • Improved Job Satisfaction

Providing your employees with a financial wellness program represents your understanding and care for your employees’ financial issues. However, the rate of incentives provided by the employers doesn’t really increase, keeping pace with market inflation. 

Most employees face the need to take more leaves, loss of productivity, degraded quality of work, etc. due to the lack of financial support from employers in managing their monthly expenses. Companies that implemented a financial wellness program noticed 24% lesser unplanned absences by the employees. 

  • Decreased Level of Stress 

Around 57% of employees avoid getting medical treatment for a disease due to their financial stress. This is an alarming issue. Along with the cost of living, the rise in insurance costs leads the employees to suffer from high levels of stress and insecurity. The result? Low employee retention rate, loss of productivity, degraded work, and more.

60% of employees believe they will benefit from a financial wellness program. Stress-free employees not only provide improved work for the company but also take an active part in its betterment. In return, they ensure improved performance for the company.

  • Better Retirement Plan

In today’s world, most employees try to keep investments or savings, to ensure their retirement plan is strong enough. However, due to the increased cost of living, often they fail to make ends meet. 49% of employees feel they will end up using their retirement savings even before retirement. With a financial wellness program, you can help your employees secure their retirement plans. A financial wellness program will also help the employees to focus on their today more, instead of stressing over the future.

  • Improved Employer-Employee Relationship

As an employer, you would love to maintain a good relationship with your employees. And this goes both ways. When there’s active assistance for employees to deal with financial stress, they actively reciprocate. Especially after almost two years of uncertainty, employees need enterprises to be by them while they deal with their financial stress. 

Reducing financial stress is not easy. But the goal can be achieved through continuous efforts by improvising your financial wellness program.

How can EarlySalary Help You Implement the Perfect Financial Wellness Program?

You will need a reputed and reliable organisation that can provide you with the correct financial wellness program. EarlySalary provides you with a special feature to implement your dream financial wellness program. With the Employer Tie-Up Program by EarlySalary, you can provide your employees with a salary advance of up to ₹5 lakhs directly to their bank accounts. Further, you can also finance them with their financial needs like school fees and medical emergencies. 

EarlySalary also offers financial seminars to boost up financial learnings among your employees. As long as a professional’s salary meets our minimum ₹10,000/month criteria, they’re eligible for our service. With EarlySalary, you can implement the perfect financial wellness program for your employees and sit back as you received improved performance in return.

Top 3 International Wedding Destinations To Suit Your Budget

Highlight: Get the exclusive list of the best international wedding destinations to suit your budget. Read till the end to get an easy and instant loan for your big day.

Weddings are more than rituals. A wedding is a ceremony to celebrate the lifelong bond of two souls who are united by unbreakable promises. The wedding day is one of the most important and cherished days of anyone’s life. Plans go on for months to make the official pronouncement of husband and wife never become ephemeral. In recent times, a destination wedding has become the talk of the town. You might be thinking anyone would love an international wedding destination, but it is beyond the reach of commoners. But you will be happy to know that you are wrong!

In this article, we will give you an exclusive list of the top 3 international wedding destinations to suit your budget. From Aruba to the Dominican Republic, this list of wedding destinations in the budget will be inevitable for you to plan your big day in an unforgettable way. So, let the bells ring!

Dominican Republic: All-Time Favourite among International Wedding Destinations to Suit Your Budget

With beaches, lush green forests, exquisite golf courses, private resorts, and winding rivers, the Dominican Republic is the hidden corner of the Caribbean that will make your big day even bigger. If you are looking for a private international wedding destination to suit your budget then the Dominican Republic can be your best bet. The Dominican Republic offers you a wedding close to nature away from the concrete jungle. It is an island in the Caribbean and consists of some of the most enchanting beach resorts of the world along its 250 miles spread beach.

Source: Freepik

The Dominican Republic is really adamant to preserve its greenery. It is considered one of the most pristine natural spots on the west. Further, its unique combination of wilderness and privacy makes it one of the best international wedding destinations to suit your budget. Situated just two hours away to the South of Miami, Dominican is known as one of the most diverse, friendliest, and most affordable under $3,000 international wedding destinations around the globe. 

Bahamas

wedding destinations

If you are looking for international wedding destinations to suit your budget then the Bahamas has to be on the list. What can be better than taking your wedding vows by the turquoise sea with white-golden sand beaches? Situated in the North-West of West Indies, Bahamas is so appealing to be one of the international wedding destinations to suit your budget as it offers luxurious hotels with special discounts and offers for couples. 

The wedding packages offered by the resorts of Bahamas can leave even the most frugal couple feeling evocative. This tropical location is in the South-East of Florida and offers actual too-good-to-be-true services for your wedding. Further, you don’t even have to worry about your wedding management. Wedding packages in the Bahamas include most wedding management services from decorations to photoshoots. Son if you are in search of international wedding destinations to suit your budget, make sure to give a head to the Bahamas. Who knows you might even be lucky enough to get the hotel rooms for free!

Aruba

wedding destinations

Are you looking for international wedding destinations to suit your budget under $1,000? Then this Caribbean island is your panacea. Aruba is a stunning island off the coast of Venezuela surrounded by the deep blue Caribbean sea. Landing here you might find yourself wondering if it is some dreamy wedding destination of Europe. From architecture to the parks, everything here is inspired by Europe. Aruba offers you a wide range of awe-inspiring and affordable resorts to choose your wedding destination on a budget.

Also Read: Ultimate Hacks To Manage Wedding Finances 

You will be surprised to see the diversity of options available to you within your budget that makes Aruba one of the best international wedding destinations to suit your budget. The array of world-class resorts offers you all types of wedding services at a reasonable rate. Further, Aruba is well-versed in hosting some of the most captivating weddings in recent years.

Low on Budget to Choose Your Favourite International Wedding Destination? Don’t Worry We Got You Covered

Everyone deserves that his/her wedding day be the cynosure of their lives. However, budget often leads us to kill our dreams of a destination wedding. But does your big day deserve to be deprived of the attention and memories just because you are a little low on budget? Don’t worry anymore as EarlySalary is your panacea. Serving over 5,00,000 happy customers nationwide, EarlySalary has become the talk of the town when the issue is of the financial crisis.

Also Read: Fulfill Your Wedding Dream With EarlySalary’s Wedding Loan

EarlySalary provides you with an instant loan of anywhere amounting from 5,000-5,00,000. You can apply, complete the process and get the cash in your bank account sitting at your home. The 24/7 secure service provided by EarlySalary makes it reliable and accessible to people in all spheres of society. If you are looking for international wedding destinations to suit your budget, then EarlySalary also provides you with an easy and instant travel loan

Partnering with one of the best travel services of India, MakeMyTrip, EarlySalary ensures you don’t find yourself in any further imbroglio while choosing international wedding destinations to suit your budget. So, what are you waiting for? Let the party begin!

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Alert! Omicron Variant: Time To Revisit Strategies For A Safe Workplace

Highlight: With an increase in the cases of COVID-19 Omicron Variant, it is ideal to revisit strategies for a safe workplace ahead of the fear of another wave of the pandemic.

The WHO has reported a new potentially dangerous COVID variant called Omicron. Also known as B.1.1.529, its first case was detected in southern Africa in November of 2021 and is now seeing a steady rise in several nations worldwide. The World Health Organization further revealed that this coronavirus variant is spreading faster in nations with high population immunity levels. 

With the rise in cases and uncertainty around its impact, restrictions, including travel restrictions, are being out in place, employers are being forced to reconsider the strategies for a safe workplace.

Encourage Vaccination

Vaccination continues to be the most effective weapon to prevent the risks of serious illness, hospitalization, or death caused by the coronavirus. Employers realize that the best way to ensure employee safety is to encourage vaccination. Encouraging employees to get vaccinated, offering time off for the same, or even offering on-site vaccinations are some strategies employers can adopt for a safer workplace.

Regular COVID Testing

As the rise of omicron variant cases doesn’t appear to be stopping anytime soon, it would be advisable for employers to incorporate COVID testing as a part of workplace policies. Testing can increase the detection of the virus considerably, allowing employers to take necessary precautions and prevent employees from coming to the workplace and spreading the virus.

Hybrid Strategy 

Most companies have started or plan to shift remote employees back to the workplace. However, with the onslaught of omicron variant cases, it is necessary for employers to go back and think about it. Companies like Google and Ford Motors had planned on a complete transition of employees to working in-office but have put a hold on their plans until more information about the severity and transmissibility of the variant can be gathered.

The broader effects on the community should be considered because as more employees start returning to the workplace, the community transmission would also increase. They would use public transport, come in contact with more people, and even risk infecting the people they live with at the end of the day.  However, companies could mitigate this risk by postponing employees’ return or adopting hybrid strategies for a safe workplace with flexible schedules and remote work.

Since the risk of workplace transmission is directly linked to the community infection rate, employers planning forward should consider these broader community effects. 

Promote Social Distancing and Masking

Until a strategy for universal vaccination is devised, one of the essential strategies for a safe workplace would be to follow non-pharmaceutical measures to battle the omicron variant. Even before the development of vaccines for the virus, the standard operating procedure was to maintain social distance and mask. These should be practiced vigorously as the threat of the new variant hangs overhead. 

Flexible schedules and remote work are adequate measures to practice social distancing. Many employers have gradually begun transitioning remote employees back to the workspace. In such cases, employees should be instructed to wear well-fitted masks and maintain a physical distance of 1 meter. 

Employers could also enlist the help of financial incentives to promote social distancing. If social distancing is unfeasible, then large office gatherings at the very least should be limited.

Promote Mental Health

The pandemic has changed workplace operations and policies. It not only increases the workload but also increases additional stressors.

Due to remote work through the pandemic, work-life and personal boundaries have blurred. Mental and physical health are closely interconnected, and if employees are overworked, overstressed, and burnt out, their immune systems are compromised. It puts them at a greater risk of getting infected and falling sick, despite being vaccinated.

Employers should continue providing continual mental support to employees through mental health counselors, allowing them to decompress through regular talks, events, and flexibility in office schedules.

Also read: Work Culture Boosts Productivity And Health. Here’s How 

As the world witnesses the Omicron variant cases rising steadily, employers are forced to rethink their plans to transition work from home to work in-office and revisit their strategies for a safe workplace for employees.

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How much personal loan can I get on a 30000 salary?

Highlight – With Rs. 30000 income, how much personal loan can I get? You might anticipate being approved for a loan of Rs.5,40,000 if you have no other financial obligations. Let’s find out.

Introduction

Personal loans are unsecured loans provided by banks and financial institutions to assist you in financing your emergent needs and dealing with life’s uncertainties. Personal loans are frequently used to fund expenses related to higher education, marriage, and medical bills, home renovation, and more. 

According to data published by the Reserve Bank of India, the amount of money borrowed in personal loans has increased manifold in recent years. Personal loans do not need the borrower to furnish any security, such as real estate or gold. Unsecured loans make it easier for the lenders and borrowers to get approved for a loan on salary, provided the former has adequate income eligibility.

What is the maximum amount of a personal loan one is eligible for?

The first question that comes to mind while considering taking a loan is, “How much personal loan can I get on a 30000 salary?” Aside from the main topic of the maximum personal loan, it’s also meeting all of the necessary eligibility requirements.

Both salaried and self-employed individuals have to meet different eligibility requirements to be eligible for a personal loan. The following are the requirements for applying for a personal loan:

  • The candidate must be a residing citizen of India. 
  • The applicant’s age must be anywhere between 21 to 55 years old.
  • In metro cities, the income must be at least Rs.18,000, and in other regions of India, it must be at least Rs.15,000.
  • A self-employed person who has been in business for at least five years and has a profit after tax based on the industry can apply for a loan.
  • A salaried applicant must have at least one year of work experience and six months with the current employer.

Benefits of personal loan on salary

Personal loans provide a lot more than just speed, convenience, and affordability, making them the ideal solution for your financial demands. Understanding the advantages of personal loans can help you determine what to look for when selecting a lender and how to get the most out of it.

  1. A considerable loan amount – Your sanctioned loan amount is determined by your credit history, salary income, and payback capacity, among other factors. Many lenders offer personal loans up to Rs. 25 lakh, which is enough to pay most of your personal needs.
  2. Value for money – Personal loans on salary provide affordability in a variety of ways. Personal loans have competitive interest rates because of the low-risk component, and you can choose your payback term to fit your budget. Credit cards and many other types of loans have higher interest rates than personal loans.
  3. Repayment options that are flexible – Borrowers can choose from a variety of repayment options when taking out a personal loan. Borrowers profit significantly from this feature because it allows them to return their loan in EMIs that they pick based on their financial situation and repayment capacity. You can reduce your monthly payments to free up more time to focus on other financial obligations.
  4. Loan without security – Personal loans are unsecured loans for which you do not have to put up any security. Because any security or guarantee does not back your loan amount, an unsecured loan carries minimal risk. Your eligibility, papers, credit score, and payment history all play a role in your loan approval.
  5. Loan processing in a QuickTime – Personal loans are processed quickly because they require little paperwork, formalities and do not require lengthy eligibility checks. You could receive approval in as little as 15 minutes*. This can save you a lot of time, which is essential in time-sensitive circumstances like medical emergencies.
  6. Convenience – You can register for a personal loan from the comfort of your own home using your computer or smartphone. The eligibility criteria are straightforward, and the documentation needs are minimal. You won’t have to visit your lender’s office even once because the entire process is conducted online. Considering these facts, applying for a personal loan online is one of the most convenient ways to borrow money.
  7. Credit booster – Even though personal loans are unsecured and have lenient eligibility requirements, they can help you improve your credit in various ways. You can quickly repay your EMIs on time and improve your credit score because you choose your EMIs based on your budget and repayment capabilities. Personal loans also help you diversify your credit, which enhances your credit score even more.

How to acquire a personal loan with a salary of up to 30,000 rupees?

If you’re wondering how much personal loan can I get on Rs.30,000 salary, follow these simple steps:

  1. Eligibility check – The first step in the personal loan application procedure is determining your eligibility. Go to the lender’s official website for loan eligibility, enter the essential information required, such as age, occupation, and income, and get an answer almost immediately. The personal loan eligibility status and the maximum approved loan amount will appear on the screen, and you will know how much loan on the salary you can get.
  • Choose a loan that satisfies your requirement — Once you’ve determined your loan eligibility limit, choose the loan plan that best suits your needs. Examine the terms and circumstances, as well as the interest rate and other fees. Consider the loan duration carefully.
  • Document submission – If you’re applying online, you’ll need to submit photos of the required documents; if you’re applying offline, you’ll need to attach the necessary documents for the loan application form. Additional documentation may be requested by the lending firm if required.
  • Loan approval and disbursement – Your loan will be granted once the document verification is completed and the lender is happy with the loan application. You will receive a notification about this. Following loan approval, the loan will be disbursed, and the funds will be deposited into your bank account.

Conclusion

Therefore, your income plays a crucial role in your loan approval process. In addition, it helps the lender determine your repayment capacity, which further helps determine how much loan they are willing to give you.

A personal loan with a low income salary may be a bit challenging but not impossible. Make sure you approach a lender that offers an easy eligibility criteria to follow and approves loan applications instantly. 

Apply for an instant loan now at EarlySalary and tie away from financial hassles.

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How to Apply for an Instant Personal Loan Without a PAN Card?

Highlight: If you are wondering, is it possible to get a personal loan in an emergency situation without a pan card? The answer is YES! It is possible, here’s how.

With the advent of improved banking policies, availing of an instant personal loan online is easier than ever. The application process of personal loans is convenient, paperless, and online. Personal loans serve as a handy source of immediate funds, especially during emergencies. What if you urgently needed funds but did not have a PAN card? Would you be able to get the necessary funds for your immediate requirements? Is it possible to avail an instant loan without a pan card in India? The personal loan application process would be slightly challenging in this case. Let us take a closer look at the options available to you without a PAN card.

A Permanent Account Number (PAN) is a ten-character long alphanumeric financial identity number. It is given by the Income Tax Department to all taxpayers in India. The primary uses of the PAN card are listed below.

  • It tracks financial transactions carried out by citizens, thus reducing tax evasion. 
  • PAN details need to be shared when communicating with the Income Tax Department or paying income tax.
  • It is a mandatory document that banks and financial institutions require if you wish to:
  • Open a new bank account or Demat account, 
  • Obtain a landline or mobile phone connection,  
  • Acquire foreign currency or convert currency 
  • Apply for a loan
  • Conduct bank deposits over INR 50,000, 
  • Buy jewelry above INR 5,00,000
  • Make insurance payments above INR 50,000 annually
  • Invest in property or buy land
  • Apply for credit or debit cards
  • Purchase a vehicle, etc.
  • The PAN card even serves as proof of age and identity.

Personal loans are unsecured forms of loans that do not require any form of collateral to be submitted by the borrower. A personal loan application requires the least documentation compared to other loan categories. The law requires all loan seekers to provide PAN card details when applying for a loan.

Financial lending institutions like banks check applicants’ CIBIL scores and financial portfolios to approve loan requests. A PAN card monitors an individual’s financial transactions, thus providing banks with details of the person’s creditworthiness. The absence of such a key document will make the personal loan application process difficult. Does that mean you cannot avail of a personal loan without a PAN card? Not necessarily. There are some options available to you.

  • If you have misplaced the card, lenders might approve your loan if you submit your 10-digit PAN number.
  • If the loan amount is below INR 50,000, lenders might grant you the loan.

The above conditions vary between lenders.

Avail of a personal loan without a PAN Card – Application tips

The PAN card serves as a critical KYC document for financial institutions granting loans. Listed below are some ways to avail of an instant loan without a pan card.

  • Continue a good functioning relationship with your lender / financial institution: Having an active savings bank account with the bank you plan to borrow from is a good idea. If you have borrowed from this bank previously and ensured timely repayments, the bank will consider your loan application. Sometimes, banks also pre-approve previous borrowers, such that no documents are needed for new loan applications. Regular loan payments and maintaining your account balance sensibly will build trust in your lender towards you.
  • Maintain a strong credit score: Financial institutions count on CIBIL reports to determine which prospective borrower they will grant a personal loan. A CIBIL score of 750 and above needs to be maintained to improve your chances of personal loan approval significantly. Timely payment of bills and debt clearance usually assures a good score. A robust credit score improves your chances of obtaining an instant loan without a pan card.
  • Aim for a low debt-to-income ratio: This signifies the ratio between your monthly debt and monthly income. An ideal debt-to-income ratio would be 35% or below. To maintain a healthy ratio value, you must clear your existing loans at the earliest. You must also ensure that your monthly EMI installments fall maximum within the bracket of 30-40% of your total monthly income. Most financial institutions consider a 15% debt-to-income ratio as ideal.
  • Maintain transparency about all sources of income with your lender: Doing this will help provide your lender assurance about your financial ability to repay the borrowed funds. Details that you can share with your lender include:
  • Your monthly salary
  • Rental income, part-time work income, etc.
  • Bonus or work-related incentives received from your employer, etc.
  • Clear all your credit card bills on time: If you hold a credit card with the bank you wish to borrow from, clear all your outstanding bills before applying for a loan. Ensure that no bill payments are delayed or missed. Missed payments indicate the inability to handle finances prudently and adversely affect your chances of being granted a personal loan. 
  • Ensure you fulfill your financial lender’s Loan Eligibility Criteria: Most financial institutions have standard eligibility requirements for loan eligibility. Broadly these are:
  • You must be a citizen of India within the age range of 21 to 60 years.
  • It would help if you were employed with your current company for at least six months.
  • You must have at least 12 months of experience in your current field of work and 
  • You must be financially stable and draw a monthly salary (which meets your lender’s minimum salary requirements). 
  • Submit collateral or bring a guarantor: You can negotiate with your bank to lend you money based on some security you provide as collateral. You can also include a trustworthy person as a guarantor when applying for your loan. While supporting your loan application, this individual would be liable to pay in case of any default.
  • Approach a Non-Banking Financial Company (NBFC’s): NBFCs have simpler norms for lending with minimal documentation and moderate eligibility requirements. Check for Personal Loan from EarlySalary.

When borrowing without a PAN card, you might have to pay a higher interest rate on your loan amount. Some lenders will readily provide loans to borrowers without Pan cards based on their Aadhar card and salary details. Such deals, however, run the risk of being scams. It is important to research your options thoroughly before approaching such lenders. An instant loan without a Pan card  is challenging but not impossible. During the personal loan application process, the right efforts will help you avail of an instant personal loan in your hour of need.

With the easy and digital loan application process in place, access to having instant funds is just a tap away. 

Apply for an instant loan today at EarlySalary and take a step closer to walking towards financial freedom.

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Culture Or Compensation? What Matters More In Your Workspace?

Highlight: While compensation outshines all other motivating factors for a prospective employee, it is not the ultimate factor. The culture of the company is a necessary preservative for thriving recruits.

“The top predictor of workplace satisfaction is not pay: It is the culture and values of the organization, followed closely by the quality of senior leadership and the career opportunities at the company.” 

~ Andrew Chamberlain, Chief Economist of Glassdoor.

It is indisputable how compensation is the primary motivator for any employee looking forward to finding their dream job. But the billion-dollar question – Is money alone enough?- has employers, all across the globe, grappling to find answers for long. Surely, money, at its finest, is merely an enabler and not a motivator. From the above-mentioned quote from Chamberlain, one can derive that company culture is the sustaining factor for employees of a thriving workspace.

Culture is more than just a “feel good” aspect of a company with incentives and happy hours. The cornerstone for unlocking a company’s success is being careful about building and maintaining an influential work culture.

To better understand the compensation vs. culture debate, let’s look at one of the oldest and most widely accepted motivation models – Maslow’s hierarchy of human needs.

Maslow’s hierarchy-of-needs paradigm highlights the importance of payscale at the lowest level of hierarchy. Money provides for the basic physiological and safety needs of existence, such as food, shelter, and warmth. Once the baser wants get satisfied, they no longer hold credence, the focus shifts to higher-level wants. 

However, this is the least essential requirement for humans in the hierarchy of wants. Human beings want more significant goals that make them feel protected, appreciated, and most importantly, lead to personal growth and fulfillment.

Compensation helps employees to meet the first level of the hierarchy by allowing them to purchase the items they believe they require for a more fulfilling life. Employees are motivated to accept a job, work more, and provide their best when monetary rewards such as pay increases and bonuses are offered. Money’s utility, however, ends there. 

Also Read: Financial Wellness: Why Should You Care About It?

Compensation will not be adequate if the rest of the workplace does not provide a supportive and cheerful atmosphere. After achieving financial wellbeing, only an empowered culture can lead to increased levels of employee engagement.

How money is not the sole medium for happiness

Andrew Chamberlain, CFO at Glassdoor mentions in a Harvard Business Review piece how it was clear that among the top six workplace factors that they examined, compensation and benefits were rated consistently lower than others. According to a 2010 study conducted by Princeton University researchers, having a better income enhances happiness by around $75,000 per year. Beyond that, increased money has no impact on happiness, and other factors take precedence.

Another research suggests monetary incentives, and prizes only promote transitory obedience. Why? Because these types of motivators don’t modify our attitudes, values, or commitments, they don’t change our fundamental behaviors.  Factors such as skill enhancement, company culture, and recognition are highly influential to employee motivation, especially at a higher wage level.

How does the opinion of higher-paid officials differ from that of the lower-paid ones? 

Although money isn’t the most important factor in employee happiness, a person’s job goals do shift as their income rises. Let us look at the results of this Glassdoor poll. While the majority of respondents choose business culture over money when it comes to workplace happiness, the poll finds that younger persons value corporate culture much more. In two of the four nations surveyed, millennials are more likely, than those aged 45 years and older, to choose culture over salary.

Referring to the Harvard Business review again, we find that for the lowest income group, the organization’s culture accounts for roughly 21.6% of worker satisfaction, but this climbs to 23.4% in the top income group. This implies that higher-paid employees want their employers to share their beliefs and promote a positive corporate image.

The report consequently emphasizes how workers at higher wage levels clearly value culture and long-term concerns such as leadership and growth prospects over day-to-day concerns such as pay and work-life balance- As a person’s pay increases, the predictive power of compensation and perks decreases dramatically, dropping to 9.8%.

Related Read: Employees Unhappy With Their Benefits Packages? Time To Modernize

Final Thoughts!

Culture as a retention tool 

Company culture is no longer a topic only addressed in closed meeting rooms or limited to current employees. It’s an area of employee concern globally. Before applying for a job, 41% of all candidates look for information on the corporate culture, according to Talent Board, a research agency that investigates the job seeker experience.

Employees and job seekers alike must have total visibility into how businesses operate. A positive corporate culture will attract and retain top people, a solid marker of long-term success. According to an American business journal, Gallup, a company’s long-term success depends on its ability to create an engaging culture. Disengaged workers cost organizations over $450 billion in lost productivity each year, and 95% of employees believe that culture is more important than pay. 

Good reviews and transparency about how people are treated may be highly motivating and exciting. People who work in a suitable culture are happy and willing to go the extra mile to make things work.

Adequate compensation for greater retention

While it is now widely accepted that culture trumps compensation, this in no way diminishes the latter’s importance! If employees aren’t compensated appropriately, there’s a good likelihood they’ll start seeking work elsewhere. The talent battle is real, and only the best personnel can set a company apart from the competition. 

If recruiters want their staff to provide their all, they should ensure that employees are fairly compensated and occasionally rewarded with monetary incentives. Pay must be reviewed and revised regularly in fast-paced organizations where employees expect much more. The worst-case scenario is when someone devotes their blood, sweat, and tears to a cause only to be underpaid for months.

There is no battle between a company’s culture and its compensation to its employees. For the holistic development of the company, it is crucial to find a balance between the two for retaining happy and efficient employees. 
Visit EarlySalary, to sort your financial worries with instant loans and salary cards and read more such interesting blogs.

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How To Avail a Personal Loan Without Collateral/ Security?

HIghlight: Here is all you need to know about getting a personal loan application approved without any security. Read on to learn more.

Can one get a personal loan without security? Yes, personal loans are granted without collateral or security. 

Availability of a personal loan is quick and easy. After submitting the personal loan application, the loan approval and disbursement are carried out quickly. How to utilize the loan amount is altogether dependent upon the applicant. They can use it for several reasons, like for – 

  • Business needs
  • Luxury/abroad travel
  • Higher education
  • Personal purchases
  • Health-related crisis 
  • Wedding
  • Home renovation

What is a Personal Loan?

A bank or a lending institution gives a personal loan. Personal loans are offered to subsidize a financial need or immediate money prerequisite. Be it for business, family weddings, or any other financial emergencies; personal loans have the power to save the situation. When one submits their loan application, the bank or the lender won’t examine you concerning the end-use.

The most convenient feature of this kind of loan is that it does not ask for security or collateral. The borrower does not need to put in any documents or gold as a security guarantee for the loan. Therefore, personal loans are more accessible than other kinds of loans.

Qualifications For a Personal Loan Without Security 

To qualify for personal loans without security, certain aspects are considered. They are-

  • Credit Rating/ Score
  • Credit Worthiness

Generally, the credit score of the applicant is assessed. Credit scores determine the creditworthiness of the applicant. A desirable credit score is seven hundred and fifty or above.

A good credit rating and history show that the applicant is responsible for repaying the loan or credit.

When one has a steady history of loan/ credit repayments and a high credit rating/ worthiness, the chances of getting a personal loan are higher.

Other than the credit qualifications, the following is a general list of eligibility criteria for personal loans without security-

  • The applicant should be an Indian citizen.
  • The desirable applicant’s age is between twenty and sixty years.
  • The applicant should be either employed in a sector or self-employed.

In the cases of availing personal loans from banks, it helps when one is an existing client. Existing clients have higher chances of getting their loan applications quickly approved.

The Role of Financial Steadiness

Personal loans are considered unsecured loans. It is because they are offered without any guarantee or security. Therefore, banks and lending institutions will check the applicants-

  • Salary or income
  • Flow of cash
  • Soundness and steadiness in business or work (to ensure that the applicant can repay the loan advance)

Therefore, when putting in a personal loan application, it is advised to focus on monetary stability to ensure a smooth loan approval process.

The Process to Apply for Personal Loans Without Collateral/ Security.

To avail of a personal loan from a bank, the applicant can visit the bank and fill out the application. Some banks also have the option to apply for a personal loan on their official websites.

The following is a general list of documents that have to be submitted to banks for personal loan approval-

  • Proof of age, address, and identity
  • Passport size pictures of the applicant
  • Duly filled loan application
  • Proof of income – salary slips and the likes.

Another way to avail a personal loan is through online lending portals and applications. The applicant has to –

  • Download the lender’s application or visit their website.
  • Login and fill the loan application. It generally includes the personal details of the applicant along with the loan details.
  • Submit KYC documents like the Aadhaar card, PAN card, etc.

When the loan is approved, the amount is directly transferred to the borrower’s bank account.

Frequently Asked Questions in Regards to Personal Loans Without Security

The below are two commonly asked questions with answers regarding personal loans without security-

  • Does a personal loan without security/ collateral accompany higher financing costs? 

Personal loans are not known to ask for any guarantees. The accompanying financing costs like the interest rates of the loan are dependent on certain aspects, like-

Credit profile and history

Required loan amount

Income proofs and history

When such aspects are strong, one can expect to avail the loan under favorable financial terms.

  • How does the loan repayment process of personal loans without collateral work? 

Personal loans are usually taken for short or medium tenure periods. Their loan term can range from twelve months to sixty months. They require equated monthly installments (EMIs) like any other type of loan. 

One can adjust these monthly payments to ensure that they are more pocket-accommodating. The loan repayment process is also very similar to other types of loans.

However, it is advised to check the terms and conditions of the loan repayment process before proceeding with it, as personal loans might differ on the foreclosure terms or charges.

Personal loans, in general, are transferred within a short period after getting approval. All it requires is a decent credit profile. Many online platforms provide personal loans with minimal documentation. With the rapid advancement in the digital age, many borrowers are showing interest in these online platforms.

A personal loan without security is not only possible but is also easy to get. Personal loans have several benefits that follow them. Some of them are-

  • Easy personal loan application process
  • Flexible loan repayment tenure
  • No end-usage restrictions (loan amount can be used for different purposes)
  • Quicker approval and disbursal processes

With the online lending platforms, one need not even step out of the comforts of their home to apply for a personal loan. They provide a window to access money quickly during urgent financial emergencies/situations. They approve loans and transfer the amount to the bank account on the same day.

In short, personal loans are simply a click away with an easy and convenient application process.

Now that you’ve grasped how unsecured personal loans work, apply one now and move a step closer to realizing your dreams that were otherwise unattainable owing to lack of funds. Apply for a personal loan today!

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How HR Can Assess Financial Safety Of Employees In The New Year

Highlight: Financial Safety and policies related to the protection of the financial interests of the employees are an important duty of the human resources team. A thriving company is born of happy and stable employees. Achieving these goals is crucial in the wake of the pandemic.

A healthy person with a sustainable income has the confidence to go about in his life. When faced with hurdles, he navigates through all difficulties easily.

Such a utopian outlook is contradicted mainly by the workers’ situation in the real world. Employees worrying about money is not healthy for a thriving workspace. Inevitably, this stress reduces morale, community engagement, and overall job performance. A study in Economic Times reveals how 40% of employees are stressed about unexpected expenses.

Employees require assistance in this area, and organizations that embrace a duty of care are more likely to retain their brightest employees. Relaxation rooms and flexible working hours aren’t the only aspects of employee health programs. They must put in place pragmatic strategies to assist employees in protecting what they have, providing people with much-needed peace of mind.

The effect of the pandemic on work-life has taught us the significance of financial wellness and employee well-being. 63% of employees have stressed how their financial worries have increased since the pandemic struck. In the wake of a new year, it is also essential to focus on protecting the interests of the employees and assuring financial safety and security. 

Also Read: Employers: Learn The Art of Financial Wellness

Benefits of financial protection

Employers of financially fit employees benefit from the following:

  • Productivity gains– Staff is less distracted and better able to keep focused on company goals.
  • Reduced stress– Related illnesses and absenteeism, such as substance abuse, on- and off-the-job accidents, and tardiness are significantly reduced.
  • Lower HR expenditures– Fewer wage garnishments, pay advance requests, and reliance on assistance programs.
  • Minor theft– Though deliberate theft is a different matter, theft motivated by desperation, such as “borrowing” money to make ends meet until the next payday can be avoided.
  • Improved capacity to interact and collaborate successfully with coworkers is increased, as well as following supervisory instructions.

Types of Financial Protection

Let us look at forms of financial protection that employers must look into.

Life Insurance

Employees with dependents require a lot of life insurance. This financial safety net assures that individuals left behind will have enough money to live comfortably. Life insurance provides families with a financial safety net through difficult times, and it could mean the difference between preserving or losing a family home.

Income Protection Insurance

Providing income protections ensures that employees are covered by income protection insurance if they lose their jobs due to illness, accident, or injury. Millennials are the generation most likely to demand income protection, according to a 2019 FT Financial Adviser article.

Critical Illness Cover

Critical illness insurance protects employees in the event of severe sickness or disability as a result of an accident. Upon diagnosis of various illnesses, this type of financial protection often pays out a lump sum (strokes, heart attacks, cancer, etc.). Employees can utilize payouts to pay off debts or mortgage payments that they might not otherwise be able to afford while unemployed.

Private Medical Insurance

While a well-equipped public healthcare system is efficient for dealing with emergency medical situations, access to private services is a helpful resource. There’s nothing wrong with looking for ways to cut down on hospital wait times when someone falls seriously sick. Access to more medical resources and a greater range of expert therapies is something private medical insurance can provide.

Having access to private medical insurance may allow employees to return to work sooner due to quick treatment – a win-win situation for both the employer and the employee.

Will and Estate Planning

Wills and estate planning can help loved ones to cope with the weight of sudden deaths. While it may appear challenging to discuss wills and estate planning with employees, it is a crucial type of financial protection that should be considered and discussed with the workforce. We never know when the worst can happen, but putting plans in place can help families deal with stress and disagreements.

Related Read: As an Employee, Why Should You Care About Financial Wellness Benefits?

Conclusion

Statistics mentioned in a study prove how such policies are favored across all employees. Across all age groups, 17% of individuals believed such measures were beneficial, while 13% preferred collective critical illness policies.

In the same study, we see how 17% of persons who intend to work past 65 and believe group income protection would be the most beneficial benefit translates to almost 4 million workers, but only 2.5 million presently receive such benefits from their workplace.

It is safe to say that financial protection and stability are necessary and protecting crucial to boosting a company’s morale and growth. Read more such informative blogs at EarlySalary.

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