In this blog we’re going to take a detailed look at employee benefit loans and the points for employers to consider when making the decision on whether to incorporate them into their HR policy as an employee benefit to help solve short-term money problems.
What Employee Benefit Loans are we Referring to?
We’re referring to GettaSub’s fixed low-interest rate short-term (30-60 days) salary advance loans.
Points for Employers to Consider
The points for employers to consider with regard to employee benefit loans are many, but let’s start with some of the facts employers should be aware of with regard to the financial wellbeing of their employees and the negative impact (financially and otherwise) it can have on their business should their employees be suffering financial anxiety.
- Firstly, it is a striking statistic that 38% of employees would move to a company where financial wellbeing is a priority for the employer. Marry that statistic in with the fact that companies saw a drastic reduction in staff turnover after introducing the GettaSub program, and that the average cost of recruiting a new employee in the UK is £5000 per hire. Now, even putting aside the universally-accepted opinion that increasing staff level retention is instrumental in providing a better service level to your customer base, the facts are that with just a 10% reduction in staff turnover, an average company with 2,500 employees will save over £750,000 per year.
- Secondly, an employer might worry that by incorporating the GettaSub program they are encouraging their employees to get themselves into debt. Whilst an understandable initial reaction, this worry would be completely unfounded. GettaSub is 100% committed to helping employers provide a more supportive work environment by offering employee benefit loans to help solve short-term money problems, which over 53% of employees suffer from per month. These are not payday loans (where the borrower is responsible for instigating repayment) with gargantuan interest rates and extreme charges for defaulting on a repayment, we’re talking about short-term, low interest at a fixed rate, salary advance loans (amounts are capped at a maximum 25% of an employee’s monthly salary) where the repayments are automatically deducted from the employee’s salary. Nor, unlike payday loans, do GettaSub loans have any effect on the borrower’s credit score…..or the company’s credit score.
- Thirdly, if an employer sees the vast array of positives and does decide to get onboard with the GettaSub program, can they expect any negative impact on their business? Financial, administrative or otherwise? The short and simple answer to this one is no. The GettaSub program comes at no risk or cost for employers. The program fits seamlessly into the company’s payroll system. GettaSub is an ethical and supportive lender that has tried and tested methods for the integration process of new employers onboard with their program. That being said, GettaSub is also aware that every employer is different so is fully committed to a collaborative and bespoke approach with regard to its clients and their specific needs. It should also be noted that GettaSub is regulated by the Financial Conduct Authority (FCA).
In conclusion, if an employer understands the ever-increasing importance of the financial wellbeing of their employees and the positive impact it can have on their business – they really should look no further than instigating the GettaSub program into their business. Sensible, risk-free, max-capped, salary advance short-term borrowing is the future. It’s certainly a famous Richard Branson quote that has had its fair share of airings, but it remains true and, we suspect, always will do – “if you take care of your employees, they’ll take care of your business”.