Has your organization considered offering employee loans as a benefit? Given the number of people in the United States who live paycheck to paycheck, there are a lot of employees out there who are one emergency away from needing financial assistance in some form.
Many employers have opted to offer employee loans as a benefit that can help employees in case of financial difficulties. That said, there are definite pros and cons to offering employee loans. Let’s take a look at a few of each.
Offering Employee Loans—The Pros
Here are some benefits to offering employee loans:
- This type of benefit can show employees the employer cares about their well-being. This can help with recruitment, as it is a benefit potential employees may value.
- If all goes to plan, offering this benefit can be a great way to improve employee retention and loyalty to the organization.
- Helping employees get through difficult financial situations may ease their overall stress levels, which can help the employer by increasing overall productivity. It can also lead to a reduction in absences for those dealing with financial situations.
- An employer may be able to offer more favorable terms than other lenders, which can benefit employees. (Also, some employees may not qualify for traditional loans, making employee loans a source of help when no other help is available).
- Employees also like this benefit because payments can be made through automatic payroll deductions, making them simple. Continue reading here…
Source: HR Daily Advisor