Employee Loan Programs And Addressing Financial Stress
Helping employees overcome financial hardships will be beneficial for both the worker and employer. Employee loan programs are a great start.
When it comes to business, employees are among a company’s biggest assets. So, it is important to provide assistance and support when they need help.
Financial hardships are not uncommon. In fact, around 78% of American workers are living paycheck to paycheck. Turning to lenders is one of the solutions that people often think of. However, there is an option that is becoming more common nowadays – an employee emergency loan program.
How It Helps?
Providing employee loans can be beneficial to both parties - the employer and employee.
By offering accessible and favorable loans to employees, a company helps alleviate their financial stress. The effects of financial stress are not only personal. It can also lead to a lack of focus at work, increased absenteeism, and low productivity.
Helping employees, even with their financial issues, lets them know that the company cares. Thus, it helps build loyalty. So, offering loans is also a good retention strategy.
What to Consider?
Starting employee loan programs can be challenging. Here are some things to consider:
Multiple Loan Requests – Prepare to receive multiple loan requests from various employees. Every employee has needs and responsibilities. Once you grant a loan to an employee, others will start forwarding requests. We make this process easier by offering a program that requires low management hours.
Qualifications – You have to be clear about the criteria for your employee loan program. However, you should also take into consideration the reason why an employee is borrowing money. For instance, emergencies are considerable. We have transparent approval guidelines which limits the stress of an employer, and guarantee employees have quick access to emergency loans.
Getting Started!
As stated earlier, starting an employee loan program is not an easy task. Going at it without any preparations can lead to disaster. So, working with a reliable third-party company like us may be the best way to get started.
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* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).
