How Does a Financial Loan Help an Employee. : ThyBlackMan

Sunday, December 15, 2019

How Does a Financial Loan Help an Employee.

March 23, 2019 by  
Filed under Business, Money, Opinion, Weekly Columns

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(ThyBlackMan.comFinancial insecurity is one of the main productivity killers. Therefore, if you are an employer with the ability to offer empathy to his/her employees needing financial assistance, then you essentially boost their overall workplace engagement as well as their loyalty. Financial stress potentially increases employee absenteeism, disengagement, and tardiness. However, businesses that offer their employees long-term financial security experience a significantly lower rate of turnover.

There is a good chance some of your employees face financial concerns and whether you’re aware of it or not, your assistance may come in handy. Remember; employees need help in realizing financial security. Some of the most common forms of financial insecurities and stresses employees are likely to feel include the following:

  • Paying for their medical expenses
  • Saving sufficiently for retirement
  • Paying or saving for the education of their children
  • Debt
  • Covering the basic expenses

It is worth noting that these are critical life milestones or the essential costs that potentially affect most employees at different phases of their lives while they put in work hours at your business establishment. You are likely to get requests for loans to aid in or cover the aforementioned expenses. Some employees might need loans to cover basic expenses while others may need an advance to cater to rising medical expenses.

In the event that you are not in a position to offer any help, your employees will consider other alternate options that are of a more dismal nature. Some employees turn to their family members or friends to accord them the financial assistance they need while others may resort to taking income based loans from providers of payday loans and credit cards.

Find Out The Needs Of Your Employees

It is important to find out from your employees why they need to secure loans. A situation where employees borrow money to handle emergency expenses or unexpected expenses is one thing; however, constant overspending or living with no set budget potentially leads them to the long, messy road of being hassled to borrow even more money.

Various Uses of Employee Loans

Employees are likely to secure loans for doing a number of things. Since there are rarely any restrictions, no how payday loans are used, employees can benefit by doing the following with their loans:

  • Family vacation or Weekend Getaway
  • A down payment for a new vehicle
  • Make critical car repairs
  • Complete pending home improvement or renovation projects
  • Sort out past bills that are due
  • Go back to college or further university education

While offering employee loans often gets expensive and complex from the standpoint of an employer, the employers may still feel some sense of shared responsibility for the well being of their staff. Not all loan requests are worth a full loan amount. Even so, you can offer a perk that allows your employees to escape debt traps. While employee loans are helpful to those who borrow wisely, careful consideration of the usage is important to avoid plunging burrows into an abyss of debt that they may never come out of.

Staff Writer; Ken Williams

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