What does Organisational Culture mean and why is it important?

“A company’s culture is the foundation for future innovation. An entrepreneur’s job is to build the foundation.”

Brian Chesky, Co-founder and CEO of Airbnb, accurately sums up the essential role organisational culture plays in today’s time. In this era of rapid economic acceleration and business expansion, understanding what we commonly refer to as “Organisational Culture” is more vital than ever. People seem to agree – in a survey conducted by Deloitte, 82% of the people who undertook the survey quoted that a good organisational culture is a potential competitive advantage. Organisational culture pertains to the behaviours and actions of the employees within the organisation, and is the summation of their actions and relations amongst themselves, with their personal goals and the organisation as a whole. It refers to the amalgamation of all external factors affecting the employee’s performance and association in a given work setup. 

Culture is important for all the stakeholders in question, not only for their own development but for the development of the organisation as a whole. A healthy organisation culture contributes positively towards building the goodwill of the organisation. Consequently, it sees a reduction in labour turnover and absenteeism, in addition to the personal growth of the employees.

The right culture (whatever that is depending on the organisation), also improves the efficiency, promotes teamwork, and helps in the inculcation of leadership skills in all. Not only that, it contributes immensely in the achievement of personal growth of the employees which, in turn, leads to more prosperity of the employer at micro-level and the economy as a whole on the macro-level.     

5 Tips to Improve Organisational Culture

Having impressed enough on the pivotal role organisational culture plays, it is imperative that organisations strive to achieve a healthy culture as much as possible in this overtly competitive age. Some tips you may want to look at:

  1. Improving communication and relaxing chains of command: A robust system of communication across levels is one of the pre-requisites for a healthy work environment. Exhibit that you value opinions, and you’ll strengthen bonds and incentivise contribution. 
  2. Gamification and employee reward system: Recognition and appreciation for performance works as the ideal impetus for faster turn-around times and improved efficiency. Having a comprehensive reward system in place for employees can go a long way in ensuring job satisfaction – which is often an indicator of happy organisational culture. It can be executed by having a wellness programme or even a free snack policy in place. In addition, inculcating a little sense of competition in the workplace may impact individual efficiency as well as team bonding. In fact, in a study by the Aberdeen Group, it was concluded that the organisations which implement some sort of gamification of the monotonous day-to-day work-life improve the engagement of the employee with the organisation and its goals by 48%. 
  1. Group building exercises: Co-workers are one of the most vital variables in shaping a healthy work environment. Therefore, all possible endeavours should be embarked on, to develop a sense of bonding. This is often done by organising team building exercises, some of the common ones being excursions, community service, organising various celebrations at the workplace, group fitness classes among other things. In fact, Apple organises an annual Beer Bash for all its employees at its HQ. It is one of the most looked forward events of the year. This improves the overall culture and makes the experience of a job an enjoyable one. 
  1. Adequate personal development opportunities: An essential component for job satisfaction for any person is personal growth in the form of skill development, educational opportunities etc. Even in Maslow’s hierarchy, self-actualisation needs are on the top of the pyramid, making it the most critical need of an employee. Organisations can provide on-the-job training, opportunities for further studies, training and skill development workshops etc to its employees. Not only does it directly assist in improving one’s performance at their job, but it also increases their sense of belonging, with the organisation leading not only to a healthier work environment for the current employees but also acts as an inducement for future employees. 
  1. Transparency and involvement in key decision making: Simply put, a sense of belongingness and safety in a job can go a long way in order to inculcate a healthier work environment. Again, according to Maslow, after the fulfilment of the basic physiological needs, these are the items an employee yearns for. By involving the employees in decisions which impact the organisation as a whole, they may feel a sense of influence and belongingness in the organisation.The results? More Inclusiveness, lowered employee turnover, and longevity of a continued healthy work environment. 

In the words of Louis V. Gerstner, Jr., CEO of IBM,

“Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success — along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

Elevating Employee Experience: 3 Areas to Focus on

What is employee experience? Is it merely remuneration that matters in keeping them happy? With evolving roles and relations between employee and the employer, employee experience has become an umbrella term. It involves everything that an employee experiences – right from the process of getting recruited to the various aspects of their life that the job impacts, whether financially, emotionally, physically or professionally. It’s quickly becoming obvious that employees now look beyond the paycheck and want their role to be of more value and provide holistic satisfaction in their life. 

This employee experience is essential for organisations in this cut-throat competition. A better experience understandably results in lower employee turnover and increased efficiency. Organisations are able to attract and retain proficient employees. However, elevating employee experience can be a challenging task. 

The role of HR already include the engagement of employees and improving overall organisation culture, but there is a need for new strategies that are more employee-oriented. Such strategies should focus on employees as a person with several edges and not just a tool for increasing productivity. 

Here are three areas that companies can focus on elevating the employee experience. 

#1 – Employee Feedback Matters

Although organisations rely on multiple methods to take in general feedback from employees, the results are often not utilised to improve critical areas. If an organisation takes feedback from the employees, they may want to regularly report the updates and improvements back to the complainant. This results in the employee feeling heard and a more accurate perception of the organisation actually paying attention to their issues. 

Studies show that only 22% of companies survey the employee quarterly, while 14% never survey at all. (Source) A regular survey will ensure that any problem is highlighted as quickly as possible. The solutions of these should be found out even quicker. 

However, one thing to note is that these surveys should be more holistic in their approach and not exclusively work-focused. They should also look at work-life balance, satisfaction and wellness. 

#2 – Design Thinking 

Design thinking, in this context, refers to crafting an experience for the employees for their engagement and their enjoyment and not focusing on just processes. The traditional role of the HR function has been to develop processes that flow through an employees workspace, such as recruiting, training, assessment, etc., with less stress on the experience of the employees. 

With a design thinking approach, HR has to take into account a lot more than the previously mentioned roles. It will involve simplification of the job, as more complexities result in confusion and chaos. It also takes into account the physical environment, the interaction between people, the interaction of subordinate and the managers, and an employee’s engagement to the organisation. 

Design thinking helps align the goals of individuals with the goals of the corporate, and thus, the employees are more dedicated to their work. This also leads to work-life balance and a culture where work is not just a burden. 

The most common ways of implementing design thinking are by restructuring the roles, making work easier, more rewarding and focus on learning of the employees. It should also make work more accessible. 

#3 – Provide a way forward

Most employees now expect a lot more from their jobs. A job should be an opportunity where the employee can explore, experience and learn something new every day. Employees should be given autonomy and flexibility to work so that they can do much more than their roles. 

Offer better career opportunities within the organisation also works well. No one likes a stagnant job. If an employee as a goal to work towards, they will strive for it. A training program can readily be devised to identify and train people who show potential and the zeal to get at higher positions. 

Of course, every employee expects different things from their job, but for most, a clear steady paycheck,  work-life balance, and emotional well being often check the majority of the wishlist. As an employer, organisations should focus on their employees, because they will take care of the business if they are happy.

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– Apply for a personal loan through the app and pay back through the app
– Highly rated app and customer support

What Will HR Look Like in 2025

“I can envision a future where HR professionals are no longer thinking that their job is to stay on top of current HR trends but to reposition [themselves] to become workforce advisors,” said Jill Goldstein, Global Practice Lead for Talent and HR Operations at Accenture in Miami, to SHRM. According to an article published in the HR Magazine of the Society for Human Resource Management in 2015, a group of top chief HR officers and thought leaders looked ahead to 2025 and predicted five possible HR job descriptions of the future.

  • Organizational Engineer

Over the past few years, with tech evolving at its current unprecedented rate, several organisations have tried to predict how the employment sector will be impacted. This then leads to the question of what role will HR have to play in the scenario. According to a survey by PwC of over 200 HR professionals in late 2016, digitization and automation will make 20 to 30 per cent of jobs obsolete between 2021-26, but only 16% of companies feel they are ready for that change. Many such changes are imminent and will certainly impact the role of HR in the future. 

The new HR professional in this job role would be an expert in varying new ways. They would be able to effortlessly extract better effectiveness from virtual teams, and would be adept at handling talent transitions while also being able to develop leadership of all kinds, fitting with the diverse teams and different work cultures of the future. Additionally, they would have to be excellent at optimizing tasks and know how to make use of organisation principles like agility, networks, power and trust.

  • Virtual Culture Architect

It is becoming increasingly easy now to incorporate teams with members scattered across the globe in any business. Virtual culture architects would be adept at understanding and managing such cross-cultural virtual teams. They would attempt to understand global cultures and assist virtual teams work together by facilitating communication. They would be excellent at communicating values, norms and beliefs across cultures through virtual and cultural means, to help teams function better. They would also help in building the brand and try to connect the employees’ purpose with the company’s purpose.

  • Global Talent Scout, Convener and Coach

These professionals are likely to develop and find talents globally, and match them with the organisation’s requirements. They would also act as a life coach to employees, especially the new joinees who often require guidance in the initial stages. They would understand various international cultures thanks to the global nature of their work, and further, boast of expertise in developing remote work models (freelancers, contractors, etc.). Their work would also involve forging relationships among workers and developing a work ethic and a sense of purpose in them, towards fulfilling the goals of the organisation.

How Much Does a Bad Hire Cost an Employer?

Hiring the right person is no cakewalk. Not only do you have to look at skills and aptitude for the job, but also whether the person would fit in well with your company’s values, and with the team you’re hiring them for. The fact that a bad hire is expensive is widely known. However, many organisations fail to understand how large the cost may actually get. The costs go beyond the tangible losses related to turnover and hiring a new recruit to fill the role which would include the recruitment process as well as the new joinee’s onboarding and training.

According to a popular 2012 report by the Centre of American Progress (the report is old, but the facts still hold), the average cost of replacing a worker costs about 20% of their salary. An infographic by EBI Inc. estimates a whopping 43% of lost revenue to be attributed to employee theft. These, however, are not the only costs associated with bad hires. Besides the loss of productivity and recruitment costs for the replacements, there are several hidden costs involved, like a disruption in staff morale resulting in a loss of productivity, impact on customer relations depending on their role, and even a significant business reputation as a whole in some circumstances.

With these phenomenal costs involved, it’s always better to be careful while hiring for new roles than to regret a bad hire later. Here are some tips on how to avoid a bad hire.

1. Align your Job Description to the Role

Before you start hiring or even rollout applications for the role, the first thing to do is to match the job description you give out to the role you hope to fill. An unclear or ineffective job description often attracts candidates who are either unqualified for the job or wouldn’t fit it. It not only saves your time as an employer to sift through their applications and filter out the ones you’d actually want but may ultimately result in a bad hire. Instead, if your job description is effective and clear, you would attract highly qualified candidates who are more likely to fit the specific position you’re hiring for. This involves understanding the role yourself first, which is an essential step to avoiding bad hires.

2. Know your Target Audience and Market Appropriately

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The next step is to ensure that only your target audience applies to the job. Marketing your job description and optimizing the content is key when it comes to this. Depending on whether you’re looking to reach the most people or if you’re looking for specific talents, there are various websites on which you can publish your job posting. Further, to ensure that the posting appears to people looking for jobs on any website, it is essential to employ SEO strategies into the creation of the job description. This would ensure that people who aren’t qualified or experienced enough for the position wouldn’t apply for the role.

3. Have a Structured Hiring Process in Place

A major cause of bad hires is when organisations use a disorganised or unstructured hiring process to fill any job role. Selecting candidates based only on their resume, asking only basic questions on their interview or being unsure as to how to go about the hiring process are dangerous mistakes one can make. They also deter skilled professionals from accepting a job, because your hiring process is a reflection of your organisation. A structured hiring process with specified, clear steps goes a long way in preventing bad hires. Include resume shortlisting, personality tests and at least one interview in your process to make it effective.

4. Don’t be Hasty

It’s always difficult to replace an employee, especially if they are senior management. However, in the haste to fill a role, organisations often end up with the wrong people getting hired. The higher the post, the more significant your hiring decisions would be and the more careful you should be while selecting someone. A little extra time taken in recruitment may cost you a bit in terms of lost productivity during the period, but this extra cost is nothing when compared to the costs incurred as a result of a bad hire. So it’s crucial that you’re careful in ensuring the right fit for the job, even if it takes some extra time and effort on your part.

5. Interview Correctly

As a hiring manager, you must be well prepared for interviewing the candidates. Keep questions ready, beyond the basic ones. They should, of course, be based on the job profile, but also on your expectations regarding the personality of the candidate. Involve subject matter experts for specific job-related questions if necessary, and ask probing questions to get an insight into the candidate’s personality. Listen to what they say and watch their non-verbal cues, too, during the interview. Also, ask them if they have any questions for you because their questions will tell you how much they know and care about the role and whether they have researched your organisation or not. An effective interview goes a long way in avoiding bad hires.

6. Look Outside the Interview, too

The interview is, of course, an important tool to judge your candidates, but what they do outside of the interview also provides great insight into their personality. They are more likely to show their real personalities when they don’t think they are being watched or judged. Their punctuality in arriving for the interview, the way they dress, their confidence level and even how they treat your staff can tell you a lot.

7. Check References

Always be sure to ask for references during the interview, and don’t forget to check them. If the referrals are reputed in the industry and have good things to say about your candidate, it’s always a good sign. Further, if you ask the right questions and listen to what is said and how you may get better insights about your candidate than you would through a resume or the interview.

8. Involve Future Co-Workers

This is not a common practice in the industry, but it’s an effective way to avoid bad hires. Asking the team the candidate would eventually work with about them would not only give you new insights about the candidate but would have the additional benefit of the teams feeling involved. You could also go a step further and ask the people who would work for them about the candidate. This is especially valid for senior management posts. Since the person you hire would be their boss, their opinions matter, too, and they would think from the perspective of how good a boss he/she would make, which is a new angle and would give you a better insight into how well the candidate fits the position you’re looking to fill.

This list is not exhaustive by any means, and you need to take great care while recruiting new employees to avoid hiring mistakes. But if you follow these tips, it would certainly reduce your chances of hiring the wrong person for a job.

What Are Employees Truly Expecting from Financial Wellness Programs?

By : Srinath Gururajrao

Vice President & CHRO, Nexval Group

Corporations globally are facing exciting and challenging times in the hyper-competitive 21st century. Innovative financial wellness programs are being rolled out across organizations in a bid to attract and retain talent. These programs vary widely across sectors and can range from simple online tutorials to seminars, standard health and retirement programs.

An organization’s Financial Wellness program defines its culture and commitment to their employees and sets the tone for future leadership. As HR professionals hunt coast to coast and crunch benefit numbers to get the best talent onboard, what many wellness programs fail to capture are the employees’ expectations.

An ideal financial wellness program aims to lend a helping hand to employees at every stage of their financial lives. Whether it’s saving for their child’s education, buying a new house or a car or an effective retirement plan, a holistic program goes a long way in bolstering employee productivity and increasing employee engagement.

As an industry expert, having spent a significant amount of time in the HR fraternity, I have observed that money, or lack thereof, can cause huge anxiety among employees and be a constant source of stress. Inevitably, such monetary worries can get carried into the workplace with negative repercussions for both employee and employer. Following are 3 essential features to look for when choosing a Financial Wellness program for your organization.

1.  Program Flexibility

The key to an effective wellness program is going beyond the basics. Employees need schemes that help them achieve true financial stability and the requirements often differ from employee to employee. Hence, a flexible and customizable program goes a long way and caters to all segments of employee with varied financial needs. It is also critical to pay attention to the tools used for communication for enhancing the effectiveness of the program. Baby boomers may prefer physical, face-to-face interactions to know their options and understand its uses. Millennials, on the other hand, would mostly prefer online and mobile-accessible resources, online budgeting tools and predictors are therefore in vogue. Employees also seek benefits for their family, wanting programs that include their spouses, children and parents is another desirable factor that makes a Financial Wellness program attractive to an employee.

2.   Benefits, not marketing products

While many organizations outsource financial wellness programs, I’ve seen scores of cases where third-party programs have acted merely as a sales channel for insurance, annuities, mutual funds, or other services from the panoply of financial products. Employees need genuine products, tailored to meet their financial goals and necessities. Firms that gain access to your employees under the guise of “financial wellness benefits” make the organization and employees vulnerable to the risk of high-fee investments. Deliver individualistic and in-depth programs to your employees instead, involving unbiased financial coaches.

3.   Low-cost Healthcare Schemes and Retirement Planning

Apart from personal financial goals, what employees have in common is the need for a health cover and retirement funds. While some employers design the payroll to ensure that a fraction of employee’s salary is dedicated to retirement or insurance, some also focus on promoting healthier employee financial behavior by conducting regular educational seminars or financial counseling.

The ongoing engagement crisis is a mnemonic for corporates to deliver individualistic and unbiased financial wellness programs. I believe that the employers have both, the responsibility and the opportunity with new financial products to give what it takes to keep their team together, build goodwill to attract new talent and maintain healthy cash flows.

Here’s how to afford your dream life with Advance Salary Apps

Running pole to post to earn more and pulling the ever chugging train of aspirations – this briefly summarize the life of a millennial. As we hustle through corporate deadlines and steer our way into new age urban culture, what we miss out amid its routine expenditures is living our dream life. There comes a time when we are ready to mark items off our bucket list but just then an urgent expenditure pops up and the item falls back in the list. But, worry no more – with EarlySalary’s advance salary app, it’s time to live your dream life.

As a part of our pursuit of achieving a better lifestyle, we’re often burdened by the financial challenges of our city lives. Even minor repair work in the household can eat away your budget. This is where an instant loan from advance salary apps can assist. These funds act as a bridge fund and are used to fulfil all your needs ranging from shopping, travel, home furnishings, basically everything under the sun.

Scores of fintech companies have offered advance salary apps to fill our monetary void instantly. Advance salary apps not only take care of your month-end cash woes but also help you meet emergency expenses until your next salary is credited. Working on a similar concept of lending, EarlySalary offers 24*7 quick loans without the pressure of paying it under strict schedules. Read on to find why an advance salary app can turnaround your life for better.

  1. Buy your desired gadget anytime, anywhere!

Have you been waiting for a major sale to lay your hands on those Bluetooth speakers and lights to make your place ready for a party? Found the ideal deal but ran out of money? Well, cheer up. With an advance salary app, you can apply for a loan on the go and get approval within a few hours. The entire application and approval process is online so you can even grab limited period offers and save big.

  1. Simple Process, Quick Disbursal

There are times when we are so busy planning things like a travel expedition or a grand party, and when the moment comes, both time and money pull us back. An instant cash loan can help by minimizing the paperwork. There is no paperwork if you apply for a loan on the EarlySalary app. The entire approval process is supplemented with eKYC which minimises the time taken by loans or salary advances taken through apps. A traditional personal loan generally takes 7-15 working days to approve. However, with EarlySalary, it takes only 8 to 24 hours to transfer the approved amount. There is no need to wait in queues and understand the complex application process. Just download the app, upload a few mandatory documents from your smartphone and get ready to live your dreams.

  1. Low-Interest Rate and App Exclusive Offers

Discount on discount is like a cherry on the cake. Many advance salary apps offer additional discounts when you shop or book through partner groups. App-based loans to offer much lower interest rates. Considering the current inflation trends, this is extra saving.

  1. Flexible Repayment Terms

When we say that the entire process is online, we literally mean it. These apps allow the borrower to calculate EMIs and choose a suitable repayment schedule. The flexible tenure allows creditors to consolidate debt, pay off their bills and feel relieved. Conventional loans have strict repayment schedules and may even drain the borrower in further debt. You can also track your payments and payment dates through the app.

The lending scenario is truly transforming, with the customers at the centre of this evolution. Simply put, there will never be a better time than now to do everything you wanted. From upgrading gadgets, skydiving with friends to indulging in fine dining and adventurous travels, a lavish wedding or buying a vehicle of your choice, an advance salary app can be used to get quick cash loans for everything you need. Don’t push your dreams any longer, download EarlySalary, the most reliable advance salary app and become the best version of yourself.

How Fibe has revolutionized borrowing in India

Borrowing has become a norm for the young Indian working population. A growing number of Indians are taking loans for a wide variety of reasons, fueled partly by the fact that loans have become so much more accessible for the market today. Loans for travelling, personal loans for shopping, loans specially curated to start your own business, the options are endless today. Earlier, sanctioning a loan could take anywhere between 2 weeks to a few months with high interest rates. Today however, thanks to lending apps like EarlySalary, the entire process of borrowing money can be done online, and the approval often comes within minutes.

There are a number of services that have amped their game, and Fibe leads from the front. One of the first few finTech portals to ease the idea of a salary advance and assist folks with urgent cash requirements, Fibe does not go down the conventional path while lending funds.

Ease of borrowing with EarlySalary

Most millennials cannot or do not end up borrowing money from banks due to a number of reasons:

  • Firstly, the entire process of borrowing money, end to end, from a physical bank can take upto months, and hence, any money borrowed cannot work for emergencies or immediate concerns.
  • Secondly, the amount of paperwork and hassle involved to get the loans sanctioned can take up quite some time, eating into your working hours.
  • Thirdly, millennials have not had much of a chance to build up their credit score. This means that any money loaned, if given in the first place, will be given off at a huge interest rate.

EarlySalary helps the younger crowd combat these issues in a number of ways:

  • All documents required to get the loan approved can be uploaded electronically, this includes your Aadhar Card or PAN Card, your bank statement and last three months’ salary slips.
  • Once you have put in your request for a loan, the app will approve your loan after checking your documents. Usually this happens in under a day, and in some cases, may happen in under an hour. Imagine getting your loan sanctioned at just the click of a button.
  • Once the loan is approved the cash gets transferred to your account. You can borrow upto 2 lakhs and the amount can be used for anything legal under the sun, be it shopping, going on a vacation, or even paying off your child’s school fees.
  • Such flexibility and ease is rare when it comes to borrowing money. No wonder Fibe has gained its ground quickly since its inception in 2016.

Introducing the Social Worth score

Very few young working Indians have a decent credit score. In order to build up the score, it is important to build up credit and reduce any risks associated with lending you money. Fibe, however, recognizes that a number of young individuals may not have decent credit scores and might need the money to simply pull themselves through the month, until their next paycheck arrives. In order to make the system more suitable for youngsters, Fibe has used the concept of a social worth score. You are awarded a credit score depending on your presence and behaviour on various social media platforms including Facebook, Twitter and Instagram. Based on a mixture of social credit and credit score, a rate of interest is charged on the money borrowed.

Fibe has created a niche space for itself by catering to young professionals who need money in a short span of time. The loans may be small and can be paid off in a customized manner.

With the internet taking over a major part of our lives, cumbersome processes have been cut short and with just a few clicks. Everything is gradually going digital, be it online shopping, financial transactions or even education, and millennials cannot be more thankful.

5 Financial Wellness Tips For The New Joinee

Everyone has experienced a phase of stress at the workplace, but when financial worries are a constant element of your life it can be devastating to your productivity and mental well-being. Lack of financial well-being can make you feel undervalued, distracted, and helpless. It can result in severe mental health conditions such as anxiety, depression, and high-stress levels. How can this be avoided? What is financial wellness? How is it helpful? How can it be maintained?

Many might wonder if financial wellness is about earning ‘enough money’. But if were to get slightly philosophical about it – no amount of money will ever be ‘enough’ for an individual. Then, what is financial wellness? Financial wellness of an individual implies a state where an employee, living well within his/her means, is able to keep an emergency fund for stressful situations and still manage to meet his/her basic needs. Financial wellness is the freedom to live life on your terms without worrying about how you’ll pay your next bill.

Employees facing less financial fret and distractions contribute to more focused, engaged, and productive workforce. Improving financial wellness leads to healthier employees, reduced absenteeism and higher productivity while raising employee satisfaction and improving the employer brand.

There are five key steps to maintain financial wellness –

1. Enjoy Your Work

Employees passionate about what they do tend to be happier and more productive at their work. Steve Jobs famously said, “The only way to do great work is to love what you do.” Having a passion for what you do, helps tackle challenging situations – financial, emotional or physical. There will always be a desire to work. Following passion brings out the creativity inside you. There are more highs and fewer lows, and each day seems more bright and interesting

2. Budget your Expenses

Maintaining a budget for monthly expenses is another way of eliminating stress from your life. Many are often turned off by the term ‘budget’. They associate it with restrictions and a lot of hassle. However, budgeting can save you money, and allow you to spend more by helping you to make the most of your money. People who do not have a budget tend to save less money than people who do. This ultimately reduces stress and helps you focus on important parts of life other than finance.

3. Create An Emergency Funds Pool

Emergency funds can be of great use during situations like job loss, medical issue, repairs and maintenance, debt clearance, etc. These funds are helpful when a person has a single source of income. Emergency funds can protect you from all of the unexpected expenses you may encounter whether big or small. Emergency funds can be created in the form of insurance policies. The purpose of insurance is to reduce your business’ exposure to the effects of particular risks.

Emergency funds can be a helpful buffer against any kind of life events that could push you into debt. It helps reduce anxiety, knowing that you have a buffer against whatever life may throw at you.

4. Invest

Investments are an essential way to increasing your financial worth and stability. Investing allows you to put money in assets that have the potential to earn strong rates of return in the future – it’s far better than having your money lie idle in the bank, and ultimately works as a healthy income source in addition to your job. Investing early also enables you to develop disciplined spending habits by focusing on your budget and cutting expenses when needed. Having a potential extra source of income reduces the dependency on just one.

5. Make Sure to Have Fun

While focusing on saving and investing money throughout the month, try to budget a certain amount for the reason you are working – happiness. Don’t get focused on your work to the point that you forget to live. Make sure to take out time for yourself and cherish what’s yours. Spend on yourself. Go out with friends and family. Cherish the important moments of life. Our busy schedules and lack of personal financial management can cost us our wellness. A lot of burden of financial stress can be avoided through sensible budgeting, saving, investing and living within your means.

5 Ways To Measure Your Employees’ Financial Wellness

A primary cause of stress today is personal finance, and without proper planning and guidance, it can impact more than just the individual involved. With lower financial stress, organisations could potentially be saving millions in terms of productivity. It is no surprise that companies are increasingly allocating time and resources to elevate the financial wellness of their employees. Regular programs that teach and promote savings and household budgeting are conducted for Bachelors and workers with a Family. While implementations are carried out effortlessly, measuring the effectiveness of such programs is somewhat challenging. But it remains a critical task – since it helps understand the domains that require more focus according to your company demographics and whether the employees are more open to talking about their finances in a direct manner or indirect manner. The feeling of empathy and support also helps employees cope with their various problems.

Here we have 5 ways in which organisations can measure their employees financial wellness.

#1 Drop in Absenteeism

Missing work due to financial problems is not an uncommon occurrence amongst employee. Many do end up taking sick days to recover from the financial stress. Some of the major causes of absenteeism in a company are often depression and disengagement. Employees not committed to their job may simply not want to go and this often stems from stress, financial or non-financial. Of course, this has direct implications on the organisation – in terms of costs, repeated hiring, and lost productivity. Manage absenteeism remains a challenge since the reasons could range from genuine illness to lethargy. Low absenteeism rates are an indication that employees are happy with their work, healthy in terms of the cash-flow at home and generally motivated.

#2 Increase in engagement and productivity

Financial wellness can greatly impact any individual’s state of mind and mood. An employee constantly stressed about their money and paychecks is going to exhibit lowered engagement and productivity. The concept of work-life balance does not imply compartmentalised sections of an individual’s life – when employees suffer financial hardships, they are likely to bring it into their work, subsequently affecting health. This can act as a double edged sword to organisations – increasing healthcare costs and lowering productivity. Having a control over your day to day, or month to month expensive can absorb a lot of unwanted financial shock. Most students already come with huge student loans, a continued productivity and engagement means that millennials have at least a good understanding about their finances.

#3 Debt Status

Thanks to the complex ways financial institutions operate in, employees often remain unaware of the various interest rates that can be levied on a loan and the fact that interest can get compounded. Financial wellness programs should strive to educate employees about the drawbacks of loans on their long-term savings. While many organisations offer a corporate credit card in order to cover any company related expenses, it is important that employees are truly aware of the consequences of delayed repayments on a personal credit card. Fewer loans withdrawn against savings indicate that employees are able to save up and not living outside their means.

#4 Looking Beyond Income

It is important to note that income and financial wellness are not directly related. A higher income does not guarantee financial wellness, and employees with lower incomes may be able live in a way that allows them superior financial wellness and independence. FInancial wellness means you give your employees the knowledge and tools to manage their finance, regardless of income. If employees are happy in their current job and not actively looking for a job change due to financial reasons, the company has probably worked hard and well on their employees financial wellness.

#5 Meaningful Dialogue

The first step to financial wellness involves employees identifying and analysing their financial status and its situation in the context of their goals. A large number of people may not be open to discussing their financial issues, and would rather hide it. A good first step to measuring financial wellness is de-stigmatising financial problems so that workers can talk about without guilt and shame.

As we’ve mentioned earlier in this post – it is important to recognise that financial wellness extends beyond the concept of just income. Without adequate planning, financial issues can get compounded, much like interest on loans. FInancial wellness programs continue to be adopted by several organisations globally, and as they evolve, we’re now moving to the natural consequential step – that of measuring their outcomes and ensuring it’s a win-win for all stakeholders.