Finances are at the heart of everything a business does. From growth opportunities to employee satisfaction, it’s undeniable that a company’s financial wellbeing is highly important and just about the pinnacle of what any firm aims for. However, one of the ways this objective can be achieved is through the salary linked loan. But what is it?
Well, a salary linked loan is a fintech-supplied imbursement made out to an employee and overseen by the employer. It’s an optional scheme that has great advantages for the company that utilises it, both from the worker and managerial viewpoint.
Consequently, it’s worth asking; what are the benefits of a salary linked loan?
A salary linked loan is made out to an employee and is automatically repaid through salary deduction. This means workers with financial concerns can worry that little bit less and be more assured that they’re working towards a steady and even prosperous financial future. For those who’re usually stressed and in debt, an employee can really feel safeguarded here.
Employees also save around two-thirds in interest repayments when compared to other options. Because of this, the service is completely transparent with no strings attached or deceiving small print. Instead, employees simply get the honest and impactful help that many are desperate for, and can now work with fewer worries hanging over their heads.
In the end, this scheme absolutely serves their best interests, and clearly provides them with an extra layer of financial security. It’s an employee benefit that can change everything about how they view and interact with their place of work for the better, helping them boost their credit scores and eliminate their debt overtime.
Because employees are so satisfied by the introduction of a salary linked loan, this makes them far more likely to remain loyal to the company for the long term and drastically reduce the turnover rate. When they’re treated well and feel valued, workers will become comfortable in the workplace, perform their best work, and proudly stick around. When bosses go the extra mile for them, they often get similar results back in turn from their underlings.
Obviously, this has numerous benefits for whichever company utilises the salary linked loan; better results are produced by the workforce, less money is spent on hiring and interviewing potential staff, and a more robust culture is built up in the workplace. Employees won’t be assembled out of apathetic and passive workers just wanting their pay cheque. Instead, they’ll be passionate about the work and business both.
In the end, a firm’s efficiency is maximised by all of this. Money is saved and productivity can sky rocket, yielding untold potential for businesses using the fintech salary linked loans. Everyone benefits on both sides, building better relationships between the business and its employees.