Instant Loan Approval Apps: An Easy Access To Travel Loans For Your Dream Destination

Planning to travel to your dream destination? Is your bank balance holding you back from travelling more and beyond? Well, not anymore. With the growth of financial services, travelling to new places and rejuvenating oneself from the hectic schedule of work-life is much easier.

Instant loan approvals through apps have made it much easier for millennials to travel solo and reduce the cost burden. Read on to find out how an instant cash loan can help you see the world and gain new experiences without hurting your savings.

Benefits of Travel Loans

  1. Visit your desired location anytime! 

Have you been waiting for a major holiday season travel offer to tick it off your bucket list? Found the ideal deal but ran out of money? Cheer up. With an advance salary app, you can apply for a travel loan within minutes from your nearest smart device and get approval within a few hours. The loan application is entirely online, and so is the approval process. So you can even grab limited period offers and save big. 


2. Easy Process, Quick Disbursal 

There are times when we are trapped planning things for a travel expedition that when the moment to execute comes, both time and money pull us back. This is where an instant cash loan helps. It minimizes the paperwork needed but also provides quick processing. EarlySalary’s instant cash loan app allows you to upload your basic documents online. The approval process typically takes 8 to 24 hours after application. Since it is supplemented with eKYC, the time taken by loans or salary advances taken through apps is much less. 

Last-minute travel plans are expensive and require you to plan expeditiously. Instant cash loan apps can efficiently plan last-minute holidays and savour those moments. Conventional personal loans require more paperwork and subsequently longer to approve. This can vary anywhere from 7-15 working days to approve. However, with EarlySalary, it is significantly faster, and even transferred directly into your bank account. As a customer, you’re bypassing the traditional complex application procesess. Just download the app, upload a few mandatory documents such as address and identity proof, pack and get ready to live your dreams. 


3. Nominal Interest Rate and App Exclusive Offers 

Instant cash for vacations can help alleviate the burden on your finances and also provide you with an efficient way to manage the costs involved. Another added advantage is the discount on discounts. Many advance salary apps such as the EarlySalary offer additional discounts when you shop or book through partner groups. These loans are available at lower rates. Considering the current inflation trends, this is extra saving. 

4. Flexible Repayment Terms 

Travelling to alluring destinations can cost a small fortune. However, if you are armed with a personal loan for travel, you can check every destination without worrying about repayment. Lenders like EarlySalary offer flexible travel loan repayment options so that you can have a memorable year-end holiday and repay comfortably thereafter. This way, you can consolidate debt unlike in conventional loans which have strict repayment schedules that may even drain the borrower in further debt.
From skydiving with friends in Dubai to indulging in fine dining in Paris and road trips travels in Leh, an advance salary app can be used to get holiday travel loans for everything you need. With more destinations to explore than you can count, from North to South and East to West, skip having to control your desire to discover new destinations. With the presence of multiple instant loan apps like EarlySalary, the how to get a travel loan question is comfortably answered. Apply for a travel loan scheme through the EarlySalary app to cover for all your travel expenses.

Some useful tips on travel: Travel on Budget in 10 easy steps

Sound Financial Advice: Invest more, Spend More.

Why is investing important? It is a question with an obvious but prudent answer. If you are already struggling to manage a monthly budget and repaying debts, you might wonder why should you add another financial task to your to-do list. But, investing might be the most important expenditure of all. Investing is crucial as it takes both your present and future into consideration. Not only do you end up with more money in your bank account than what you started out with but you also generate an extra source of income for yourself. So, if you want to retire as a financially independent person, investment is the way to do it.

What is investing? Investing refers to generating money by using money. In literal terms, investing is putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit. This means anything that guarantees to generate a return is an investment. Let’s discuss a few ways to know how can you make your money work for you :

#1 Spending More Motivates You to Earn More

Spending money causes money to flow back to you. Did you ever notice how close-fisted people are broke most of their lives, but people who spend or buy things always seem to be able to continue buying things? Saving alone never made anyone rich. It is the money transferred that triggers that energy to bring it back to you. Spending money does not mean becoming a spendthrift. Spending money here refers to spending money to make money. You should not be afraid to invest money. Make your money work for you, instead of just sitting idle in your account.

#2 Improving your Living Standards Impels You to Earn More

Money can offer you a healthy and comfortable life. By spending the right amount of money on quality food, you’ll face fewer health-related issues. Money helps in reducing mental stress as well. You can plan vacations to relax and rejuvenate your mind and avoid worrying about unnecessary office related issues when you need a break. You don’t have to work as hard if you have a lot of money, leaving you free to follow your passions and hobbies. You can hire people to help out with housework, buy yourself and your loved ones all the clothes and little goodies you always wanted to, and never worry about splitting the bill the next time you go out.

Those who know how to spend wisely, spend more time on investing in themselves, helping others, being with their loved ones. So, yes spending money can improve the quality of your life.

#3 The More You Invest, The More You Earn

An investor makes use of their money to acquire things that offer potential or profitable returns. They will devote his limited resources to the things with the largest potential for returns. These things may be paying down debt, going back to school, or fixing up a two-family house. Thanks to advances in technology, one can start investing with as little as Rs. 100 a month and a smartphone. But, does that really help? Investing involves risks. But, to succeed in life, playing safe won’t help you will have to take some risks. The more you invest the more will be the return on your investment. 

#4 Investing becomes one of your Income Sources

Having multiple sources of income has obvious advantages and can have a major impact on your financial status. Even an extra income of Rs 5000 each month could go a long way towards paying off debts or increasing your investments. With multiple sources of income, you’re guaranteed some income at all times. Diversifying our income streams is a critical task in difficult economic times, and investment is the best possible way.

There are two likely ways to generate income in our modern world: 

  • First, by working – either yourself or making others work for you. 
  • Second, – by having your assets work for you. 

If you intend to save with your back pocket or under a mattress instead of investing, modern economic dynamics are unlikely to have you truly build wealth. On the other hand, by investing you generate income by earning interest or by buying assets that increase in value. Once you start spending more in the form of investing, you start earning more as well, making your money work for you, effortlessly.

Of course, if there’s ever a shortage of funds, it really shouldn’t be an issue. With instant personal loan apps like EarlySalary, our ability to live freely remains unrestricted!

What’s the best thing money can buy? More Money

People often argue if money is the most important thing in one’s life and that money cannot buy happiness. But one thing that we all can agree upon is that money is the second most important thing in our lives because it can buy you time and freedom which is more or less the same as happiness! 

Realizing the importance of money does not make you materialistic. Rather, it makes you a practical person because you understand the value of money. It is not the money that should amaze one, it is what money can do for you. Money provides you with choices and freedom in life. Having money in your pocket makes you have control of your life. It allows you to decide how do you want to spend your life, it gives you the freedom to choose who you want to be. But, do you know what is the best thing money can buy for you? More money. 

Saving money will never help you grow your money. But, investing a small part of your money can help to multiply it. Let’s discuss more on how investing at an early age can benefit you.

#1 Time Freedom 

It is the most obvious and important benefit of investing money. Time freedom means having the time to roam meticulously throughout the world. It means not being stressed out and run around like a headless chicken on steroids. Having the freedom of time allows you to retreat and relax, and let you value this beautiful life in a much deeper way. Studies have shown that investing at a young age will make you end up with far more money than those you invest later in life. Having time on your side means you decide what you do with your time and not the bosses at your office. Once you start investing and earning, your job will no longer remain your only source of income.

#2 Compound returns 

“Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.” Compound Returns prove to be a real benefit over the long run. The earlier you get started the greater you have the chance to take advantage of this. In simple words, the compound return is the power of the time value of money.

#3 Quality of life

“Quality of life is an overarching term for the quality of the various domains in life. It is a standard level that consists of the expectations of an individual or society for a good life. These expectations are guided by the values, goals and socio-cultural context in which an individual lives.” Good quality of life is the most tempting benefit of investing money. By investing at an early age you will be able to achieve financial stability faster in life which leads to a steady and good quality life.

Investing is how you build wealth. As a millennial, one can invest in various ways such as Mutual Funds, Bonds, IRA, Online stock brokers, Individual stocks, Real Estate,  Crowdfunding, and various others. But we don’t always meet our month ends and it becomes difficult to think about investing money. 

Well, we have a solution; rather than opting out of lucrative investments to cover urgent expenses, youngsters can loan those expenses using Instant Cash by EarlySalary. Instant loans are extremely different than bank loans. Bank loans are given over a long period of time and require a legitimate reason to ask for a loan. At EarlySalary, you can loan money for minor reasons like a monthly cash crunch. EarlySalary’s short term loans might be the best solution for an unexpected cash crunch or even an instantaneous Goa trip.  

Through EarlySalary, you can get a loan up to 2 lakhs without any prepayment charges. You can borrow and repay the loan on your own terms. Applying for the loan is effortless and takes only 5 minutes and you get the cash transferred to your bank account instantly.

This way you can easily keep investing and for any urgent expenses such as throwing a party for friends, going on a short vacation or repaying a friend, we got your back!

When everything is available on EMIs, why not education? Introducing School FeES

With the rise in quality of education, the cost of good education is skyrocketing in tandem. Naturally, all parents desire to provide the best education possible for their children. With this comes a pressure that most have to deal with, the affordability. It can be easily known that an average middle-class parent makes enough over a particular period to be able to send his/her kid to a good educational institution, but since schools nowadays require half-yearly or quarterly payments, it can understandably get a little tight. Recognizing this, EarlySalary has come up with a unique concept called School FeES which is essentially mirrored on student loans, but with superior caveats. Let’s look at some of the features of obtaining an Education loan from EarlySalary:

Hassle-Free

EarlySalary is known for its easy and hassle-free experience and as expected, provides the best possible way to deal with this process as their applications take an average of under 10 minutes. And the best part? No paperwork, all you have to do is download their app, register yourself and evaluate your eligibility, once it is done, you can get loans in no time.

Why is FeES better than a cash loan?

It is no myth that education loans can seem like overkill with their high interest rates, lots of paperwork and eligibility requirements. EarlySalary strives to make the entire process a lot easier by transferring the loan amount directly to the institute’s bank account. This way, you don’t have to deal with any part of the transaction whatsoever. FeES is also better because it is instantaneous whereas a conventional cash loan usually takes a few days to get disbursed. What makes this the best student loan option is that it also has a higher limit to borrow without any proof of asset collateral, as in the case of cash loans.

Duration and Repayment

School FeES can be availed for up to an entire year as an instant loan which can be repaid in EMIs of 3, 6, 9 or 12 months depending on your convenience.  The repayment policy on this is also flexible, as it allows prepayment of the loan with absolutely no charges for wishing to do so. 

The best loan solution

With up to 5 lakhs of credit available, you can better realize your dreams of sending your child to the best school or even getting yourself a skill upgrade. Fee deadlines and late fee penalties are issues no longer due to EarlySalary’s real-time disbursement of the education loans.

Another matter of concern for parents is being able to cover the expenses of all their children who often seem to miss out on the good stuff. So even if you have two kids where both of your children requires a loan, fret not, because EarlySalary lets you obtain a school FeES for up to two people which can again be paid easily by easy monthly Installments through popular modes of transaction like UPI or PayTm which make the process even easier than it already is. 
Make sure to check out School FeES by EarlySalary to learn more and make the best investment for your children’s education needs.

5 Ideas To Help Reduce Your Expenses

Whether you’re the little kid thinking about their pocket money, or working professional, saving money is a common goal all of us aspire for. But it’s easier said than done, of course. We have a myriad of expenses that simply can’t be ignored – be it rent, food or commuting. Then there are the occasional luxuries that one indulges in, like a movie, eating out, or visiting your favourite place. Saving under these circumstances can prove to be a harder task than one realizes. 

To help you plan better, here are 5 ideas to reduce your expenses.

#1 – Start By Eliminating Debts

Eliminating debts is a proven way of building. The interest rate on debts, when compounded over a large period of time, can burn a significant hole in your savings. Start with the smallest of your debts, and work your way upwards. This will not only give you confidence to tackle the bigger loans, but also help in saving the interest amount. Credit cards, in particular, can charge exorbitantly high interest rates on your debt. Make sure you’re taking an instant loan instead.

#2 – Organization and planning

Allocating different tasks a part of your budget is one of the best ways you can reduce your expenses:

  • Make a list of all the expenses you make on an average day, and categorize them on the basis of priority. 
  • Start by reducing your expenses on the low priority end of the list. 
  • Cutting a little amount here and there can make a big difference in your savings.

You can also make a financial calendar to help you remember your due payments. This will save the extra charge on late payment and simultaneously also improve your credit score.

#3 – Avoid high interest loans

With a myriad of banks and lenders in the market, there are wide ranging interest rates that are available. Low interest loans are usually accompanied by stringent terms and conditions that may sound lucrative initially but will prove hard to comply with. If you need loans, carefully research every available option. You can also turn towards personal loans, which provide immediate respite from money requirements. Instant loan apps like EarlySalary provide great options in this sphere. 

#4 – Turn to SIPs

SIPs (Systematic Investment Plans) are a great way to both divert and grow your money simultaneously. As the name suggests, the concept is a planned way to invest your money in periodic intervals. The best part about SIPs is that they are flexible in their timeline, as they can be quarterly, monthly or even weekly investment opportunities. Since these plans are flexible, you can choose to increase your investment or discontinue at any time. All you need to do is pay the amount you wish to invest. Nothing more. Investing early and for longer periods of time can give you a good return on your savings.

#5 – Focus on the ’50-30-20’ rule

In a nutshell, the 50-30-20 rule says that allocate 50% of your income (after tax) for your necessary expenses, like rent, mortgages or bills. 30% to your ‘wants’, like small luxuries including movies, dining out etc. If you’re spending more than 30% on ‘wants’, it’s time to cut back your expenses a little bit. Finally, allocate 20% to your savings and investment. This will include emergency funds or the SIP investments you plan to make. 

The rule was popularized by Elizabeth Warren,  a U.S. senator in her book All Your Worth: The Ultimate Lifetime Money Plan. It’s a proven formula that has gained acceptance in financial circles as a legitimate method of planning.

Of course, this isn’t an exhaustive list. But it’s a good place to start on your journey to financial wellness. For more tips, check out the EarlySalary blog here.

Instant Loan Apps Are Revolutionizing Credit In India. Here’s How

Thanks to the innovations in the fintech sector, borrowing money has never been easier. Among the by-products of the amalgamation of finance and technology are digital lending platforms or instant loan apps that allow people to borrow money in a faster and hasslefree way. Due to their instantaneous lending process and other advantages, digital lending is becoming popular with every passing day, especially in India. 

What is Digital Lending?

Before we dive deeper, we need to understand what is digital lending. As the name itself implies, digital lending is a process of lending money over the internet. This means that each step in the entire lending process is done online. Digital lending platforms such as instant loan apps incorporate a greater degree of automation to make the overall borrowing process a seamless experience for borrowers. This way people can apply for instant loan online and get their required load with minimum to no paperwork.

How are Instant Loan Apps Making Credit Easier in India?

It is a well-known fact that financial inclusion has been a major issue in India. For many years, banks are considered the go-to place by Indians in case of a loan requirement. They have long been a dominating player in the Indian credit market, be it a personal loan, home loan, car loan or any other type of credit. However, taking a loan from banks typically requires a tedious amount of paperwork and effort on borrowers’ part. Satisfying all qualifications needed for loan approval is not feasible for everyone. As a result, a credit gap has  naturally been created in India.

Now, we live in a digital age where digitisation has become the new norm of doing things, and India’s finance sector hasn’t been untouched from this digital revolution. In recent years, rising penetration of the Internet in India has opened up new doors to many new possibilities in the country’s credit market. Digital lenders were quick to siege vast opportunities presented by the advent of fintech in India and are providing instant funds to those in need.

Borrower-Friendly Approach

Making the lending process borrower-friendly is where instant loan apps have truly outdone their traditional counterparts. Banks generally follow rigid lending policies and procedures that have little to no regard to borrowers – especially those who need small loans. Whereas, digital lending platforms are effectively bridging this credit gap through their user-oriented policies designed to cater to the needs of individual borrowers.  

Reducing the Paperwork for Loan Approval

Minimum paperwork is one of the biggest advantages of instant loan platforms. Since the entire process takes place over the Internet, loans are approved and sanctioned much quicker as compared to banks. Furthermore, the introduction of the e-KYC has made it even more convenient for individuals to have their identity and demographic details verified and get their loan approved. For instance, digital lending platform EarlySalary only requires an individual’s PAN card and one of the ID proofs (Aadhaar, Voter ID, Driving License or Passport).

Easily Available to Individuals

Digital lending has been truly able to capitalize on the growing penetration of the Internet and smartphones in India. Instant loan apps or platforms generally operate through a web portal or as smartphone apps. This allows people to access credit funds easily without needing them to visit banks multiple times for their loan. Take EarlySalary for example – the instant loan app is able to disburse funds within hours of a borrower’s profile getting approved. This is also beneficial for lenders since they do need to bear the cost of establishing and operating a point-of-service.

Leveraging the Data

Traditional lending platforms require the evaluation of multiple factors that affect the loan application of a borrower, such as tax returns, credit profile, past loans and repayments, statement of bank accounts etc. This entire evaluation can take weeks or months, depending on the individual’s profile. However, digitisation has been a game-changer in this aspect. EarlySalary factors in a broader range of factors – such as your ‘Social Worth’ score, to quickly evaluate the data and ascertain the credit profile of a borrower.

Future Prospects for Instant Loan Apps

Instant loan apps have proven to be instrumental in filling our widening credit gap. However, to truly become and remain relevant to the people, these apps will need to continuously innovate and deploy new technologies. Furthermore, with increasing adoption, digital lending platforms are going to need a flexible approach to building and satisfy the needs of their users.

Recruitment Trends to Watch out for in 2020

By – Collin Cornelio
Assistant General Manager, Cosmos-Maya

As technology continues to rapidly change the corporate landscape, the recruitment landscape is evolving in tandem. An expanding gig economy, a demand for creative employees who can keep their skills updated and adapt to changes, and a digitally savvy workforce are all driving an evolution of the recruitment system. Skills are in short supply, and the market for good talent is more competitive than ever. In such a situation, it is important to keep abreast of the latest recruiting trends. Here’s what to watch out for in the coming year.

Candidate experience

Earlier, employers had the upper hand in recruitment. Today, even as unemployment rises, there is a parallel dearth of talent being seen, too. A report by Deloitte predicts that the skills deficit, which is numbered at around 23 million now, will grow to 29 million by 2030. 

Evidently, this means genuinely talented job seekers have the upper hand in the recruitment process. This means that along with ensuring the candidate is the right fit for the job, recruiters also need to provide a great experience to the candidates. This can be done using tech to make the process easier, and a personal touch to candidates throughout their recruitment journey. Recruiters can stand out by giving constructive feedback to candidates at each step, rather than “ghosting” them. Job seekers also give importance to knowing how their work environment will be before they join, so “day in the life of an employee” videos on the website which provide genuine behind-the-scenes glimpses into life in the company can also help enhance the candidate experience.

Flexible work schedules

In the increasingly competitive hiring market of today, it is essential that recruiters know what the candidates desire. While 9-5 jobs were the trend up till a few years ago, flexibility is now highly prioritized by job seekers. According to a survey by the International Workplace Group, 80% of the respondents reported a higher preference for a job offer that came with flexibility. Further, 85% of businesses said that productivity increased with higher flexibility. Of course, flexibility depends on the nature of the job and is not suitable for every kind of work. However, an offer of flexible work schedules whenever possible certainly increases the chances of a candidate accepting the job offer.

Collaborative recruiting

Building a business through networking and the connections of current employees is a great way to bring quality talent to the organisation. An employee referral program which incentivizes current employees to refer people they know for recruitment can benefit the employer as well as the employee. The highly competitive recruitment market calls for creative measures to cut hiring costs and get the best talent, and connections are far more viable and compelling than job boards in such a situation.

Employer branding

To attract talent, it is crucial for employers to shape their brand reputation. Job seekers now prefer to look up employers’ brands before applying, so companies boasting of a superior brand image are more likely to find perfect candidates. Unlike earlier, when all employees cared about were monetary incentives and perks, they now also look at culture, values and ethics alignment. The newer, more “woke” generation prefers to work for organisations that have a positive impact on the world.  

Making your brand attractive, therefore, would require more than just corporate marketing campaigns. People now expect more a personal look at what to expect. Great employee reviews on Glassdoor and other social media sites, a professional website clearly stating the vision and mission of the company and an active social media presence are all important to build your organisation’s brand.

AI in recruitment

One of the most popular emerging technologies, AI has been portrayed equally as the answer to recruiters’ problems as well as the biggest challenge they would have to face. The reality, of course, lies somewhere in between. AI is being used to enhance the role of recruiters, but not replace them entirely. Artificial Intelligence brings less biases to the candidate selection process than humans do, though it does not make completely unbiased decisions. AI can be leveraged during the recruitment process to free recruiters from tedious manual process like paperwork. Chatbots, which use AI technology, can engage candidates throughout their journey. 

AI would, in other words, do the heavy-lifting when it comes to screening candidates without bias and creating a seamless experience for them. Human recruiters would, of course, still be required for the parts that need creativity and intuition, like designing the recruiting process, interviewing the candidates, etc.

Final thoughts

In an industry environment that is continuously changing, it is easy to worry about the uncertain future and the role technology would play in it. However, one thing is for sure – the role of human beings will not diminish, although it will definitely change. The above trends show technology playing a supporting role in recruitment, rather than taking centre stage. This is because even as tools become more sophisticated and automation pervades every field, the end goal remains – to attract the right candidates by creating a great experience with a human touch. The target audience, after all, is human.

How are Financial Wellness Programs Operated By Great Brands?

A financial wellness program is executed with the objective of educating employees at the ultimate goal of increasing their financial well being. This is supplemental to the standard employee benefits that goes beyond retirement planning and investing information. They help the employee feel financially secure, with a properly devised plan based on how and when they can be managing their finances for both the present and future. Employees reportedly spend approximately 150 work hours annually worrying about money. That’s almost four weeks of work time!

A recent study from Financial Finesse indicated that a company with 50,000 employees could save around $33 million to $49 million annually just by increasing their financial wellness score of its workforce by one point on a 10-point scale.

How Great Brands Operate Financial Wellness

Google offers its workers financial wellness resources, such as access to financial advisors and financial planning services. In addition to this, the company is the most well-known example that goes to great lengths to keep its employees happy with free lunches, snack kitchens, happy hours, casual dress code, commuter shuttles, on-site laundry service with the belief that perks are a critical weapon in the war to recruit top talent.

But not all employees are attracted to frills and perks. 

Glassdoor’s recent employment confidence survey shined light on the priorities of its employees. It revealed that just one-in-five employees rate office perks as important. These fringe benefits in fact, were rated ninth in a ranking of what mattered most to their employees. An individual more concerned about mounting debts or chronic illnesses has little interest in unlimited coffee or happy hours. No surprises then, that medical coverage, retirement plans, and wellness programs rank significantly higher and are supposedly crucial benefits that serve to reduce stress outside of the workplace.

Atlanta-based SunTrust Bank launched a financial education program called Momentum onUp geared towards improving their employees’ financial health. With the use of videos, modules and other learning activities, its motive is to boost user confidence in personal finance. Employees were also offered classes on financial education, projected account balance statements, retirement income calculators, online resources and personal consultation services.

Multinational professional services company Accenture, had a slightly different take on financial wellness programs – stating that simply creating a digital platform with a horde of content would not really gather the interest nor help the employees understand what they could use from the information available. In fact, too much information pointing at different directions could confuse the individual. A mix of this content while using the principles of behavioural finance would help companies to cover every element of the financial education in a holistic way while offering information in logically sequenced, digestible chunks. Today’s technology could take it to another level using artificial intelligence (AI) and analytics, taking personalisation that the employees expect to a more definite route. Analytics can help differentiate between types and categories of employees keeping in mind life events and stages as well.

In A Nut-Shell

Understanding the employee’s specific financial needs so that those needs can be more accurately met is the key to a successful financial wellness program. Workshops on subjects like personal and household budgeting, consumer credit building, spending behaviours and consumer attitudes and financial goal setting can go a long way in helping an individual understand the process and the future of their financial wellness. It’s important to factor in employees’ spending needs and their ability to grasp financial education concepts. These are what make a strong financial wellness program, and therefore, a strong organisation.

Financial Wellness – Why Women Are Left Behind

Globally, the idea of gender roles is undergoing a seismic shift from traditional values. There is no profession where women are now less confident or apprehensive to foray into. With changing times, a much needed change has been brought into the gender equality scenario. But, it’s no secret that we still have a long way to go before gender equality becomes a fully realized idea. 

One area where women still continue to lag behind as compared to men is financial wellness. In almost every country on earth, women tend to outlive men. So it makes little sense that women should still lag behind in this sphere. A recent study by Corporate Insight showed that women are less confidant, less prepared and less engaged than men when it comes to financial health. The same study also indicated that women consistently put “do not know” as their answer when asked questions about financial literacy. This trend has not undergone much change since 2016. Women also exhibited less knowledge, poorer saving practices, lower overall savings and contributions than men. 

These are all very worrying trends that stand in the way of gender equality. This also begs the question, why? What could be the reasons for this kind of financial disparity between men and women?

Why This Disparity?

Financial wellness is a direct result of financial literacy. As we just saw, women do not fare well in this sphere. This lack of education directly translates to a dearth of decision making skills at crucial moments of savings and investing. 

Another reason is the gender pay gap that despite widespread awareness, continues to persist in our society. Less than 6% Fortune 500 companies have women as CEOs, women are 80% more likely than men to be poor after retirement and are more likely to take unpaid work.

Add to that the fact that women get less than a third of pension than an average man, owing to factors like childcare, part time work and eldercare responsibilities.  Once these factors compound, the pay gap can look almost impossible to catch up to. Add to the fact that a woman’s longer lifespan requires her to save more as compared to the average man. This further thins the resources a woman saves for retirement, which is already less than the average man.

The Solution

Despite the numbers painting a sombre story, there are solutions that can be implemented to realize the intrinsic goal of a woman’s financial well being. 

  • The first step is raising awareness about financial health amongst women. Women in rural areas have a tendency to be pushed into domestic occupations, and with the presumption on them to handle familial responsibilities, it leads them to pursue their career aspirations less aggressively. Putting more effort in educating more women can only lead to better financial health.

  • Another solution can be personalized financial wellness programs. Women show wide variance in decisions like when to start a family, family roles etc. Financial plans should be tweaked to incorporate childcare decisions and other life choices that are limited to only women.

  • Organizations also need to do more to bridge the gender pay gap. Instead of giving parental leave only to women, they should also give paternity leave to fathers, so that childcare can be a shared experience, without putting female careers at stake.

Services like EarlySalary can work as ideal solutions to short term cash requirements. As a result, women can tide over expenses when needed, while retaining some flexibility and control over their financial health. With short term loans available for as low as Rs 9/day, borrowing for urgencies, or even leisure, is far easier than ever before. 

There is still clearly a long way to go until we achieve equality in financial wellness. By and large, women still tend to put their careers on the line for families and children. However, with time, it’s reasonable to be hopeful of this gender gap decreasing. Improving women’s financial health is a challenge that looks more scalable than ever before.

Don’t let your organization miss the mark of pay equity

While pay equity as a concept is fairly old, its context has continued to evolve with time. Originally leveraged as a tool to combat the adverse impact of unequal pay between people of varying social classes and backgrounds, it is now the de facto term to address gender pay disparity.

India has had a good track record for labour laws containing wage-related legislations – like the Minimum Wages Act, 1948 and the Equal Remuneration Act, 1976. These were framed to provide social security and fair employment conditions to prevent discrimination amongst skilled and unskilled labourers and disparity between wages paid to male and female workers. Now, however, a prominent struggle for women to get equal pay has become a rising voice in almost every industry. The glass ceiling women have been subjected to for a long time now faces significant opposition, especially since a large number of women now boast of equal levels of knowledge, skills and competency. 

It is high time that the strategy makers don’t let this gap broaden, as pay equity has a high impact on the overall wellness and performance of the employee. Let’s take a deeper dive into the significance and importance of pay equity on employees and organisations:

#1 Job security

One item of critical consequence for pay equity is job security. It doesn’t take rocket science to ascertain that if employees are treated fairly and rewarded aptly in accordance to their output, they would want to continue working in the same organisation. The assurance of no disparity encourages employees to feel positive about their careers and the company. You’re effectively ensuring that job incumbents don’t go searching outside.

#2 Lowered stress

No prizes for guessing that employees will feel happier and more satisfied in their current endeavors if they are paid fairly. Pay equity isn’t a metric for evaluating costs, it’s a tool for encouraging employees to work to the best of their capabilities and not feel burdened because of excess work and less compensation. With no pay disparity, it is a fact that women will be able to earn better and lead a more stress-free and joyous life. Having a job that is fair on this factor is certainly a good opportunity that no one would want to miss. 

#3 Talent Attraction

Looking to bring in (and retain) top talent? It’d certainly help if your organisation was one known for its pay equity and fair compensation. Expect your team to share positive feedback on your company with others, and let word of mouth (or even formal recognition) help build your brand’s reputation on this aspect. The results will be quickly visible – both when you’re looking to hire for open positions, or when you receive regular applicants.

#4 Financial wellness

Out of all the reasons for continuing a job, one of the major reasons is financial wellness that comes with having a stable income. Stability in life is important and for most of us, a good-paying job is an essential way to reach a state of financial security and wellness in life. With pay disparity at bay, the entire workforce is likely to be a step closer in reaching their personal financial goals. From recreational activities to situations of emergency, financial aid is a necessity that can be best provided by the firm they work for. 

#5 Higher growth prospects

With highly competent employees wanting to continue rendering their services, you can expect things to take a more favourable turn for your business. Engaged and committed employees, with the right training and development, are better positioned to graduate to higher-level managerial roles. This is a win-win for both them and the organisation, which can then skip having to scout outside when looking to expand. 

#6 Higher competence and productivity

Appropriate compensation and good pay packages serve as an important link to productivity. Higher productivity is far more likely if employees have a fair chance of receiving the right appreciation and compensation for their work. With better productivity, there’s also a higher chance of skill enhancement.. So, the competency and the efficiency of employees increases which is a win-win situation for both. 

Pay equity should be treated as a responsibility for bringing economic stability in the country and labour market. Pay disparity on gender biases needs to be stopped and for the company, assuring such aspects will fare well for retaining quality employees. A transparent and fair compensation scheme is important for the creation of a culture of growth. 

For business prosperity, it is best to make the best use of employees. With pay equity you can retain and attract the best talent around that will help you to drive the business towards continuous success.