With millennials’ increasing dependence on credit options in order to live their life, financial education is more critical than ever. While financial literacy has of course, a directly positive impact on employees, it also benefits employers is more ways than you may imagine. Strong financial education and better financial management skills result in employees less likely to end up with financial woes and stress – or in other words – more likely to end up as increasingly productive parts of the workforce. Lower attritions are a consequence as well if there are fewer financial hardships and fewer requests for salary advances to deal with. Financial stress can affect the workplace in many negative ways, by directly impacting productivity and causing more anxiety at the workplace.
Educating employees about their finances is also a good way to exhibit a truly people centric organisation culture – the organisation moves forward if its people move forward.
New Joinees: The Basics
Companies are often seen hiring new employees during a certain time of the year (and sometimes even throughout the year), be it through on-campus hiring, or off-campus drives.
As the business scales, manpower needs obviously increase. When a percentage of the workers retire or graduate to managerial positions, young graduate students are often recruited to fill this gap. Younger employees tend to be more enthusiastic, with stronger learning ability and are more up to date with current technology. They also have fresh ideas and newer perspectives that can bring an added value to the organisation. They also do not tend to cost the company as much.
Sometimes, employers hire a certain group of people due to their unique skill, such as a cloud computing specialist, or a web developer. Their ability to do the work in a short amount of time with great efficiency reduces the overall cost to company and increases their profits.
Thanks to the digital age, recruitments are not as tedious for the employers as they used to be. With job roles becoming more specific even at the lowest level, candidates are screened out automatically. While online recruiting is very effective, it is also important that your new hires transition into their workplace effortlessly.
The Criticality of Financial Wellness For Employees
Employees spend a third of their day at their workplace. Naturally then, it is critical that they look forward to it – and that is accomplished when the organisation is careful to cater to their needs – physically, mentally and financially. The three are often very closely connected, however, employers are often significantly responsible for financial wellness:
- Funds play a very important role in their lives and a lack of them is likely cause a number of problems, including disruption of physical and mental health.
- With increasing stress and workload at workplaces, employers are now taking the financial wellness of their employees more seriously. The average worker today, before even starting their job, typically brings with them significant debt in terms of college loans and personal loans that need to be paid off.
- Organisations have fortunately begun taking an active interest in improving the everyday financial situation for their employees. This need not be directly in the form of money. Food vouchers, sponsored trips or even simple spa and movie tickets are given out regularly as morale boosters.
A Good Financial Start
Benefits and bonuses are a lot more regular and simple now with the onset of the digital era.
- Employers have tried to lighten any financial burden through tie ups with online loan apps or extending personal loans and salary advances themselves.
- Companies are also issuing corporate credit cards to reimburse any excess expenses carried out by the employee for the organisation. This could include travel expenses and client meals.
- Several banks, including State Bank of India, and ICICI Bank have extended their support to a prepaid card model. Expense management brands have also created prepaid cards for business purposes, so employers can get their money reimbursed easily.
Companies have come a long way as far as financial wellness is concerned, from team outings to regular bonuses and festival gifts, employers are going out of their way to ease the financial stress of their employees by fulfilling experiences. Tie ups with leading salary advance apps, such as EarlySalary also ensure that workers can obtain salary advances and personal loans at an affordable interest rate without much hassle and paperwork. It’s a good time to be part of an active workforce!