What Are The Essentials For Holistic Employee Wellness?

In the corporate context, the concept of wellness has often been associated only with regards to the physical health of an employee, and employers have historically been focusing their wellness plans around these. However,  ‘wellness’ may not just mean good health to all the employees. For someone, it can be physical wellness, while for some mental wellbeing can be more important. Therefore, focusing on a singular aspect of wellness is likely to be inadequate in employee satisfaction and in designing a plan that fits everyone. 

Holistic employee wellness has evolved as a new concept in recent times. With organisations recognising employees as their biggest asset, it has become increasingly important to ensure their holistic wellbeing. There are certain essentials that constitute holistic employee wellness. These can be broadly classified as physical wellness, mental wellness, social wellness, career wellness, and financial wellness. 

#1 – Physical wellness

Workplaces may not have a significant direct effect on the physical wellness of an employee, but they can take measures that ensure better lifestyle choices that are healthier for their employees. Practical or flexible working hours is a good way to assure that employees do not get overworked. Organisations can also promote good health by providing options such as standing desks, gymnasium, healthier food, and others to help employees be healthier. 

Continuous work can also affect the physical health of an employee, thus proper relaxation and rejuvenation programs can also be implemented. 

#2 – Mental wellness

The mental health of employees is an increasingly prominent issue in today’s workplaces. Employees now often report work stress, depression, poor work-life balance and more. This not only affects them as a person but also their productivity as an employee. Thus, employers may be risking productivity if they ignore the mental health of their employees. 

Therefore, there is certainly a pressing need for understanding the requirements of employees to ensure they are not mentally stressed, and working environment plays an important role in this. Organisations would do well to hire experts that can suggest specialized plans to deal with mental issues of employees. 

#3 – Social wellness

Employees spend almost ⅓  of their life at the workplace. Not surprisingly then, their social life is greatly affected by their life at work. While employees constantly work, collaborate and brainstorm together, this is not an indicator that their interpersonal relationships are just as good. Employers understand this, which is why they organise various programs with a focus on making employees more comfortable with each other and the workplace more relaxed. 

Social wellness can also improve the relationship between a superior and subordinate, and help iron out any differences that may arrive at a workplace. 

#4 – Career wellness 

Employees naturally desire a career with some sense of direction in their organisation. Stagnation is best avoided, and that is made possible with opportunities to hone skills, progress in roles and positions, and being recognised for contributions.

To ensure improvement in career wellness, employers may want to initiate leadership programs, where extraordinary performers can be recognised and trained to become leaders for tomorrow. Their job should be tied to giving the organisation the right push, so they feel their job is relevant and recognised. 

#5 – Financial wellness

Perhaps the most critical factor in these paradigms that employers tend to overlook is financial wellness. Financial wellness does not only constitute better pay, it includes all related benefits an employee receives as well. All such benefits should often be consulted with the employees. Financial plans are never one-size-fits-all. With every employee sharing unique goals and plans, programs should be changed and broadened as and when needed. 

Employees also want to start planning their future as soon as possible. Thus, it becomes an employers responsibility to train their employees about good financial management. Programs to help them understand various financial schemes, retirement planning, financially investing for long-term goals, will help the employees to a great extent. 

Organisations may also want to connect employees with services that offer quick and hassle-free access to credit, like EarlySalary. Money, after all, is an enabler – and credit is how this enablement is executed.

It is time for employers to look beyond the paycheck and start thinking of employees as not only a productive asset, but also understand their human needs. 

The Convergence of HR and Technology Can Lead To Some Overwhelming Results

Even under the most challenging circumstances, it is critical to strengthen a workforce in a way that reflects an organisation’s true values, culture and growth objectives. Weathering that challenge requires innovative thinking and technology. HR can leverage technology to fill the gap between talent needs and optimize productivity to get desired increase in business growth.

Technology is more than just a tool – it’s an enabler. It can empower HR managers and deliver structured information with standardised processes. It can automate and streamline HR processes in the employee lifecycle. Every step from hiring, onboarding and training to compensation, benefits, retention and exit. In this post, we cover how tech in HR can assist businesses to thrive, survive and compete.  Let’s have a look at the transforming HR tech sector and the impact that they can have on your business.

Top 3 Tech Trends in HR

From payroll function, applicant tracking, learning and compensation management to succession planning and competency management, technology in HR can do it all. It is essential  for business houses to accumulate and use technical knowledge within the aegis of a shared environment. For better clarity , we have narrowed down to the top 5 trends that might heavily influence your organisation.

#1 – Big Data and Analytics 

The significance of data management in HR is unquestionable. HR professionals can deploy big data to understand their customers, target audience group and make decisions powered by vital information. Analytics can also assist recruiters assess potential employees and make better risk management decisions. Natural language processing technology can deliver findings on movements and interactions of employees and scrutinise efficiency. Talent analytics can help organizations analyze employee knowledge and develop proper training programs for them.

Organisations can even leverage workforce analytics to get a clearer view of pay gaps and discrepancies and promote fair salary compensation. The role of HR as an administrative function can be supported by technology to simplify administrative tasks and have a strategic impact on the organisation.

#2 – Cloud-Based HR Platforms 

Cloud-based HR software is  increasingly becoming the norm. This isn’t surprising, as it allows HR professionals to work with real-time data, store, archive and organise information such as documents in a secure location. An employee self-service model grants employees better control of their data, benefits and gives companies more effective tools to evaluate employee engagement and productivity. 

#3 – Technology For Employee Wellness 

Creating an employer brand requires employee advocacy. Technology can help encourage employees to become true advocates for an organization by sharing their own valuable experiences. Self-service applications, machine intelligence and e-learning approaches can deliver personalised financial-wellness education to employees at their convenience. 

Data can be automatically compiled with machine learning algorithms. This can be used to construct annual reviews of employees’ financial standing and recommend short- and long-term plans. There are numerous financial wellness tools available which offer services such as budgeting tools, financial goal planning, tracking of spending, assets and financial management progress. 

Embracing Technology

Marrying a technology experience with human experience may not be adequate in itself. It is also important to adopt technology-augmented processes to effectively move the needle on financial health and ensure the inflow of information and its availability to employees. This will, of course, require human resource managers and their departments to transform into  strategic data managers. There is a gulf between technology adoption and the ability of HR teams to use it and the data it generates to deliver meaningful, business-transforming metrics. There is a need for critical investment decisions in technology to reap huge benefits and growth for organisations.

Working with a Multigenerational Workforce in 2024

By: Srihari.S

About the Author: He Heads the Talent Management and Digital HR practice for a medical technology Company and is currently the Director Human Resources with over 15+ years of Industry experience.

Mention organisational restructuring in a hallway, and you’ll likely receive an eye-roll. Seasoned employees may say that they know the drill as they revise and re-revise business priorities. However, isn’t it time we find a new group of workers to come along and bring with them a vibrant and optimistic approach to workplace change? After all, even long-tenured and jaded employees may want to experience change in new and exciting ways. 

In recent years, I have been witnessing a more collaborative and constructive approach in organisations and the catalyst is the generational overlap taking place in Indian business today. Generation Z workers are arguably the most ethnically diverse generation, and they are entering the workforce in big numbers. With close to five generations present in most organisations, managing generational diversity can be overwhelming. 

Rethinking Goals & Seeking New Values 

Firms today are competing to maintain longevity and employees’ value proposition vis-a-vis the industry approach. This requires leveraging demographic advantages, specialisation in creating collaborative networks, performance management and project economics. All of these tasks require that organisations garner commitment from their workforce of the future.

As per a survey by PWC, India will have the youngest employable population in the world by 2020. With the increase in flexibility and ease of work, the average retirement age will also likely go up, which will further increase the multi-generational mix. Moreover, by 2020, the average Indian will be only 29 years of age. The key is adopting the learning-from-everyone approach or reverse mentoring. Communication, networking, strategizing and other related tasks are executed differently by varying generations, and can add unique value to multiple aspects of an organisation’s functioning. 

The Role of HR

The role of HR in building a collaborative multi-generational work environment and brand should be focused on connecting the right culture and behaviors, and on guarding against reputational risks across divisions. In the same vein, innovation in financial wellness programs can assist in incentivising different generations and help companies thrive in the future. 

As organisations struggle to find employees with bleeding-edge tech-skills and professional savviness, there is a need to anticipate the ways disruptions originating from a multigenerational workforce can impact an organisation. Over the years, I have seen divergent pursuits of happiness, values and ideals across generations, as I’m sure many others would have as well. The key is to make every generation feel accurately valued and align them with broader goals.

Every generation shares different goals. Some prefer cash rewards and respond to hygiene factors such as promotions, perks, appreciation, fancy designations, and so on. However, many may be interested in relatively newer age concepts such as flexible retirement options and tax-saving schemes. This should not be surprising – all of us desire financial security, after all. Millennials tend to appreciate wellness programs that offer them getaways with family and friends, outcome-based remuneration and structured investment plans. Whereas, the older generation prefers monetary rewards, stock options and long-service awards. To allow employees from each faction to add to the changing business landscape, it is important to fine-tune the financial rewards with performance metrics and productivity. 

Challenges Ahead

The real test of the HR function would lie in catering to the diverse employee value proposition. While millennials revel in multi-tasking and in being validated for their efforts, the older generation is task-oriented and can value material rewards and individuality. 

A generational difference creates a workforce that may find itself divided in more ways than more homogenous workforces. Herein lies the rub. While most policies in an organization are designed by a group of seniors, there is an increasing potential for mismatch between the desired results and the actual impact. As per a study by Deloitte, this mismatch can lead to lower engagement rate, productivity, a higher attrition rate and  unrest among the workforce. This can result in lower than expected output from the investment in human capital. Clearly, there is a need to build granular understanding of generational differences for a productive workplace. 

Multi-Generational Workforce: A Boon

It is important to remember that the senior industry experts in your organisation add tremendous value with their industry insights. However, we must not overlook the knowledge that younger generations can bring. A multi-generational workforce creates an environment ideal for symbiotic growth of knowledge and skills. When we leverage the unique skills of the different generations, we enable employees to create a more engaged and productive environment.

What is FOIR? Formula and Its Impact on Your Loan Approval

If you’re planning to apply for a loan, one term you’ll often come across is FOIR. For those wondering what is FOIR in loan approvals? It tells lenders how much of your income is already going towards fixed expenses. The FOIR full form is Fixed Obligation to Income Ratio. It’s one of the key factors that decides your loan eligibility. 

This number helps lenders assess your repayment ability. A high FOIR means you already have too many liabilities. A low FOIR means you may handle a new loan better. 

Read on to learn more about the FOIR meaning, FOIR calculation formula and how it fits into the loan application process. 

Table of Contents 

What is FOIR in Loan? 

How is FOIR Calculated for a Personal Loan? 

The Importance of FOIR Calculation in Loans 

How do Lenders Calculate FOIR? 

Tips to Improve Your FOIR 

FAQs on FOIR  

What is FOIR in Loan? 

The FOIR meaning is simple. It shows the percentage of your income already used for the repayment installments of existing loans, credit card bills, rent and other fixed payments. In India, FOIR is similar to the debt-to-income ratio used globally. It helps lenders judge your creditworthiness. 

Some lenders use your gross monthly income to calculate FOIR. Others use your net income after tax and deductions. A low FOIR means more disposable income and a higher chance of getting approved. 

How is FOIR Calculated for a Personal Loan? 

To calculate FOIR for a personal loan, lenders use this basic FOIR calculation formula: 

FOIR = (Total Fixed Monthly Obligations ÷ Net Monthly Income) × 100 

What counts as obligations: 

  • Ongoing loan EMIs 
  • Credit card dues 
  • Rent, if applicable 
  • Any other fixed monthly payments 

What’s not included: 

  • Taxes 
  • Provident fund 
  • Insurance deductions 

FOIR calculation with example: 

Let’s say someone’s monthly income is ₹60,000. They pay: 

  • ₹15,000 towards a home loan EMI 
  • ₹5,000 for a personal loan EMI 
  • ₹8,000 as rent 

Total obligations = ₹28,000 

Now applying the formula: 

FOIR = (28,000 ÷ 60,000) × 100 = 46.67% 

In this case, the FOIR is 46.67%. Depending on the lender, this may or may not meet their eligibility limit. 

Also Read: Personal loan foreclosure charges 

Ideal FOIR (Fixed Obligation to Income Ratio) 

FOIR represents the percentage of your income that goes toward fixed monthly obligations like EMIs, rent, and other debts. Lenders use this to assess your repayment capacity. 

FOIR Range Category What It MeansLender Perspective 
Below 30% Excellent Very low financial burden; high disposable income Strong approval chances, better interest rates 
30% – 40% Ideal / Healthy Balanced obligations and income Considered safe for most loans 
40% – 50% Acceptable Moderate financial commitments Loan approval possible but may involve stricter checks 
50% – 60% Risky High dependency on income for debt repayment Lower approval chances; may require higher income or co-applicant 
Above 60% High Risk Majority of income tied to obligations Likely rejection due to repayment risk 

The Importance of FOIR Calculation in Loans 

Your eligibility for a instant loan highly depends on your FOIR. The lower the FOIR, the better it is. Here’s why it matters: 

  • Impacts loan approval: A high FOIR may lead to rejection even with a good credit score 
  • Shows repayment capacity: It tells lenders if you can handle more debt 
  • Applies to all loan types: FOIR is checked for personal, home and even business loans 
  • Matters more for unsecured loans: Since there’s no collateral, FOIR carries more weight 
  • Lower FOIR = better chances: It suggests you have enough room to take on new EMIs 

How do Lenders Calculate FOIR? 

Most lenders follow a basic process to check if you can handle another EMI. Here’s how they usually calculate your FOIR: 

Step 1: Add your fixed monthly obligations 
This includes EMIs for any loans, credit card dues and rent if applicable. 

Step 2: Check your income 

  • If you’re salaried, they use your net monthly income. 
  • If you’re self-employed, they may consider gross income along with average monthly earnings. 

Step 3: Add the new loan EMI 
The EMI for the loan you’re applying for is added to your current monthly liabilities. 

Step 4: Compare against their FOIR limit 
Each bank or NBFC may have slightly different policies. But most lenders have a cap between 40% and 55%. If your FOIR stays below this, you have a faster and better chance at approval.  

Tips to Improve Your FOIR 

If your FOIR is too high, here are a few simple ways to bring it down: 

  • Repay smaller loans: Clearing just one EMI can improve your ratio 
  • Increase income: Freelance work or rental income can help boost earnings 
  • Apply jointly: A co-applicant’s income can reduce your individual EMI burden 
  • Choose a longer tenure: A smaller EMI brings down your FOIR 
  • Avoid back-to-back loan applications: Keeps your monthly outgo under control 

Most lenders consider a FOIR of around 40% to be healthy. It gives you better chances of loan approval, especially if you’re applying for unsecured credit. 

If you’re preparing to apply, choosing a loan provider with a simple and quick process can make things easier. With Fibe, you can check your eligibility online and get funds of up to ₹10 lakhs in just a few minutes! No collateral, no stress. Download the Fibe Personal Loan App now to get started! 

FAQs on FOIR  

What is a good obligation ratio? 

Ideally, a FOIR under 40% can help boost the approval chances for an affordable loan. 

What should I do if my FOIR is high? 

If you have a high FOIR, you can either increase your net income or reduce your debts. Alternatively, you can adjust your loan application to lower your EMI or make a joint application to reduce the EMI burden. 

How to increase FOIR? 

Increase income, prepay existing loans, avoid new debt, opt for longer tenures to reduce EMIs, consolidate multiple loans, and cut unnecessary expenses. Lower obligations or higher income improves your FOIR. 

How much FOIR is good? 

An FOIR below 40% is considered good by most lenders. Below 30% is excellent, while 30–40% is acceptable. Higher FOIR may reduce your chances of loan approval. 

What is high FOIR in loans? 

FOIR above 50% is considered high. It indicates most of your income goes toward obligations, making lenders view you as a higher-risk borrower with limited repayment capacity. 

SBI launches e-Tatkal Loan

Tech advancements are driving and metamorphosing business practices across the globe today. Technology driven lending practices are taking over their traditional counterparts. Banks and financial institutions in India have been the major bearers and movers of finance across sectors, industries, firms and individuals. India has one of the largest banking networks in the world. Banks too have shifted their operations online with internet banking, debit and credit cards over the years. Now, their next phase of action seems to involve quicker access to credit. 

To keep in pace with the current developments and the growing need for fast instant loans, SBI has launched ‘Project Tatkal’ to provide doorstep services and expedite the home loan application process. “It will bring down the average time taken for delivery of home loan to within 10 days from the date of receipt of completed home loan application form and relevant supporting documents from the customer,” SBI said to Press Trust of India.

Highlights

  • The project will help customers ‘get instant loans’ within 10 days of receiving the application form.
  • The Application form has to be accompanied with relevant documents for the loan to be eligible for approval.
  • The implementation is being done in a faced manner. currently , it will be one at large centres with sizeable home loan business,
  • SBI also introduced an Online Customer Acquisition Solution(OCAS) for instant e-approval of home loan applications. 

The initiative is one of its kind and a pioneer step by the banking giant to smoothen up the approval process making things easier for the applicants. The bank even has over three million home loan customers with a portfolio of over 16,60,000 crore.

The press release though raises a lot of questions when it comes to comparing SBI’s standing with online lending apps like Fibe who, within three years, has very successfully crossed the 1000 crore loan disbursal mark. It scores over SBI’s project e-tatkal on several pointers. Established in 2016, the app has already become India’s largest consumer lending mobile application. Seemingly, banks are still far behind when compared with the agility, efficiency and speed offered by instant loan apps in India like Fibe. 

As of 2017, Fintech companies enjoy a market share of 32% in the Personal Loan segment, higher than banks, credit unions or any other traditional Finance Institutions. With a host of attractive features like Instant approval and Paperless processing, you can avail these unsecured loans via the online route.

As you read this article right now, about 1500 instant loan companies are providing instant cash loans, salary advances and a bundle of other facilities to lend finances to their happy and satisfied customers. The online lending apps are gaining popularity due to the security and assurity with which a prospective borrower turns into a satisfied customer.

Co-founder and CEO of Fibe, Akhay Mehrotra says, “India is a fast growing market with a large percentage of young population. However, there is still a lack of access to credit, which ultimately is essential for development. This is where we come in; Fibe (Formerly EarlySalary)provides the credit underserved groups with timely financial assistance through technology and data-driven approach with a low delinquency rate. This has helped us scale up the business very quickly and we believe that we will cater to at least four to five million users in the next couple of years. The fact that we are now the country’s largest consumer lending application is a testimony of the faith and confidence that our users have in us.”

Let us have a quick review of what makes earlySalary so appealing to the young population: 

#1. Hassle-Free and Quick

The Fibe app does not let you wait 10 days or more as is the case with SBI. Your application is processed within minutes and the loan amount is disbursed to your bank account within the next 24 hours. Traditional banks have to go a long way before they can reach the automation levels reached by the app until now. It currently disburses over 60,000 loans a month and not even 3000 loans out of the lot require any kind of human intervention. 

#2. High level of Digitisation

Zero human intervention and high levels of digitisation allow for a decision making process based on a unique lending algorithm that combines traditional scores with non-traditional  data including other parameters such as risk assessment. The first time users and repeat users of the application are reviewed using a unique social worth underwriting system and a machine learning platform. This ensures that a person seeking credit for the first time or without a credit score gets a loan on the online platform too. 

#3. Less formalities

SBI is opting for doorstep approval of loan applications along with its OCAS facility. Fibe only asks for your bare minimum documents all of which can be uploaded on the app itself. From the application to the disbursal- all the formalities of the loan are completed on the app itself. The online lending app does not take into account the credit rating of the applicants except in some cases. The eligibility only asks for you to be a citizen of India, over the age of 21 years and earning a salary of INR 15,000 in rural areas and INR 18,000 in urban areas. There is no processing fees or hidden charges involved in Fibe loans. 

#4. Customized and tailored products

Home loans are the only segment being touched upon by SBI under the new project. The facility will be only available in areas of high demand. Whereas with Fibe you can get a loan from INR 5,000 to INR 5 lakhs. Besides this, it provides a variety of other variants of credit facilities such as Advance salary, Instant loans, FeEs(education loan), credit cards, to name a few. The repayment terms are, of course, customisable as per the convenience of the borrower. 

#5. Credibility 

SBI is a name one connects with trust and assurance. Fibe does not lag behind in this department too. It has 220 corporate partners with a reach of a total of 5 lakh employees. They have recently opened India’s first ever FinTech SmartOffice in Bengaluru to serve an offline channel for customers. They have seen growth rate of 200% per year and the mobile application has been downloaded 9 million times. It seeks to serve those sections of society that are often rejected by the bank for want of creditworthiness- the young salaried professionals and the blue and grey collared workers.   

SBI has a large legacy when it comes to serving customers and the new step with e-tatkal is being appreciated by the masses. Further details about the project are yet to be released. The best instant loan app – Fibe, on the other hand, is focusing on ensuring the best customer experience their priority. Though in their nascent stage, the app has been well received by the millennial and Gen Z when it comes to quick instant personal loans over the internet, without serving yourself the haggles of approaching banks or waiting for approvals over an online medium for more than a week. Stay tuned for more updates!

Why is the Indian Market rapidly moving to Personal Loans Online?

“We are in the midst of a robust Indian consumer credit market expansion where we are seeing immense growth in both the number of accounts and balances for most major credit products, including credit cards and personal loans,” – Yogendra Singh, Vice President of Research and Consulting, TransUnion CIBIL.

The online credit market has been seeing a robust growth throughout the year with more and more young people opting for online personal loans to seek assistance during  financial crunch. Rishabh Salwan*, a Customer Care Executive, needed some quick cash to disburse his fees for an online MBA distance learning programme. He had already taken an auto loan and was in no state to saunter around banks for another loan. At last, he used an online personal loan app requiring no credit check to get his life sorted. Online personal loan apps are coming to the rescue of the masses who are often rejected by the banks due inadequate creditworthiness, or interest rates that are beyond the scope of repayments. Today, there are a number of fintech portals that provide personal loans for students and personal loans providing fast cash. 

As such rising aspirations of Indian consumers, especially the white, blue and grey collared class, has led to the growth in the volume of transactions across all portfolios and geographies in case of personal loans. 

Credit accounts saw 28% growth in origination to reach 107 million accounts and aggregate balance of all retail lending products saw 21% growth to reach Rs.28.9 trillion, in the third quarter of 2018 compared to year-ago  quarter, according to the latest industry report by credit information company CIBIL Trans Union. 

~Economic Times

Aspirations and desires are driving millennials to go overboard with their splurging and purchases often beyond the scope of their salaries. And they aren’t stopping or waiting for the piggy bank to fill!  Especially the young earning population living in metros and tier-1 cities – folks here do not shy away from using credit as a means of going on a vacation or purchasing their favourite bike. Tech advancements, machine learning, automation and AI clubbed together have oozed out some fantastic quick personal loan apps online that have simplified loans. From a cumbersome ritual involving loads and loads of rejections before one get approved to a mundane activity as if borrowing from a friend, online personal loans have changed the way one borrowed money. Traditional banks granting personal loans still follow the same customs of slogging as you fulfil the formalities and still get a rejection in return. 

Online personal loan apps such as Fibe are surging in popularity over banks because they are quick to disburse loans and don’t require lengthy paperwork. Besides, they offer consumers a personal loan EMI calculator to plan their borrowing. You can check your credit rating on the app as well. Let’s talk about a few quick pointers about why online personal loan apps are a rage nowadays.

#1 Changing lifestyles

The lifestyle patterns of new-age millennials are evolving. Instant lending apps now serve almost as instant digital wallets for the people who need not suffer during month-end  financial crunch. The times are shifting from postponing one’s needs to postponing one’s payment through these online loan apps. People take easy pesonal loans anywhere between INR 60,000 to INR 1 lakh to fund their dream holidays or ease up their cash flow for other expenses. 

#2 Frequency and Quantum of loans

Earlier loans were considered a burden and loan default – a stigma. With changing times and needs, loans have been serving petty cash requirements of even INR 5,000. A person may be opting for these online loans umpteen times during a year and sorting his repayment schedule likewise. This sort of routine seems almost impossible when it comes to banks and the efforts are enough to break your backbone. The frequency and quantum have increased and decreased respectively. While the variations in the loan amount as per the needs also ask for a facility that is quick, undemanding and economical. 

#3 Plastic money and online lending

Banks and other NBFCs provide less choices in terms of short term credit facilities. “As we started to explore solutions for this problem, we noticed that the underlying problem was much larger. The only product financial institutions offered was a credit card which was meant for customers with high incomes and high credit score and there were no short-term credit options for young Indians,” says Akshay Mehrotra, CEO and co-founder of Fibe. Also, people with low credit scores may not get a credit card. Credit card is often accompanied by heavy interest burden and patchy recovery agents haggling customers. 

#4 Cibil scores

Online lending apps don’t ask for CIBIL scores while granting loans. Students and employees find it easier to seek a loan of low value for a duration of a week to 51 days, and EMI based 3 months to 12 month personal loans. The best part –  your credit scores remain unaffected and your credit standing remains intact. 

#5 Ease and agility

These loans require no formalities and minimal waiting time. Customised plans without any human underwriting are involved. The prominent aspect of these loans is that they are getting accepted by the employees as financial wellness offerings from the companies who have collaborated with the apps. 

The loans earn brownie points for disbursing the loans in the accounts of the borrowers within 24 hours of the application. 

#6 App based

There are no physical barriers involved, nor is the need to travel to the nearest bank branch and get your loan sanctioned. Everything has been made feasible  on a single mobile app, from the loan application to uploading of documents to loan approval. You can be in the comfort of your couch and get the instant personal loan into your account.

#7 Direct associations

“Today, we offer over 40,000 loans a month across product portfolios of 30 days, 3 months, 6 months and 12 months in terms of instant loans, salary advances, EMIs to shop now and pay-later products on Amazon, Flipkart and Big Bazaar and school fee payment options on EMIs.” ~Fibe. 

The portal alone has about 200 collaborations with renowned brands. Customers can use online loans to buy stuff from online portals and pay later in attractive EMI schemes offered by the lending apps. Fibe also offers education loans and the facility for paying school fees and meeting other such expenses. 

Online lending apps can offer effective funds at the right moment with little efforts.The future belongs to the Internet and the online lending apps are a clear sign. Though traditional personal loans may be far from being replaced completely, the argument that they are on their way out certainly has merit

Why Finance & HR Must Work Closely Together

By: S.K Dutt, Group CHRO – Ampersand Group
Senior HR professional & Post Graduate Alumnus of University of Oxford – Said Business School

Both Finance and HR professionals share one common goal –  achieving higher level of performance and profitability. While CFOs are responsible for allocating resources required to deliver the company’s strategy, CHROs’ responsibilities include ensuring that right people are hired at the right time for the right job, with necessary support and effective incentives.

Employees – Cost or Asset?

Physical assets are easier to measure and manage, people assets, on the other hand can be difficult to predict and manage. Employees not only need top-notch treatment but also a comfortable pay that assists multiple aspects of their lives. Though HR and Finance departments can often be seen as diametrically opposite, there are significant advantages to be had via the establishment of a mutual working relationship here.

According to an Ernst & Young survey of more than 550 CFOs and CHROs around the world, companies where the Finance and HR relationship has become more collaborative over the past years report average higher EBITDA growth and stronger improvement across a range of human capital metrics, including employee engagement and productivity.

Finance department stands to benefit by working with HR to understand how perceiving employees as ‘assets’ rather than ‘costs’ can positively impact an organization’s long-term performance and is more likely to lower costs, streamline operations, increase productivity and improve talent management.

Certain ‘CFO-CHRO’ characteristics that sets apart high-performing companies from their low-performing peers include:

  • Acknowledging the implementation of shared services as a critical enabler of collaboration.
  • Deeper involvement in strategic planning and decision-making. Both departments adopt a forward-looking approach to get the most out of people and capital based on identifying the right opportunities and solution
  • Wider adoption of Analytics to focus on broader metrics for tracking the health of the company and not just the finances

Experts involved in the study done by EY have identified few key drivers of collaboration between these two forces:

  • Increasing labour cost and scarcity of talent: Increasing labour cost and scarcity of talent can lead to costly rates of attrition and impact the viability of investments. Companies need a better understanding of the relationship between cost and performance.
  • Elevation and acknowledgement of HR in the corporate hierarchy: Known for being a support function, HR has been far removed from strategic decision-making. Rich Postler, HR VP of Global Business Services, P&G is quoted as saying “It is fundamental that the finance head and the HR head are in lockstep with the line business head. The relationship between the three should be symbiotic. When we have a strategy, as a business, it has both human capital and financial implications that must be in sync. When they’re not in sync, we make bad decisions and we confuse people.”

  • Addressing financial and people impact of decisions: Involving both the CFO and the CHRO in the strategic decision-making process and creating new products and services keep the financial and people impact of decisions
  • Changes to operating models: Next journey for companies would be to have a global data knowledge and oversight that will give HR and finance business partners the insight they need to better enable business success.

There’s a much larger influx of data in organizations seen today than ever before. This data, with the help of Analytics, can be leveraged and used by both departments to integrate the idea of finances and human assets even deeper and optimize critical decision-making processes. Well-articulated in an article by Nakisa.com, some of the key questions that CFOs are looking to answer through HR metrics include the following:

  • Do we have a clear picture of the current organization?
  • Do we know where talent and organization vulnerabilities lie?
  • Do the actions of our organization align with our business strategy?
  • Are we building a sustainable talent roadmap?
  • Can we maximize retention and reduce the cost of turnover?
  • Does our HR technology facilitate a smooth, fast way to manage end-to-end HCM?
  • Are we engaging all key stakeholders from front-lines to boardroom in our HR strategies?

The Finance department can estimate value addition by employees and provide inputs on the financial impact of the processes and HR is available to determine whether training and nurturing is required. Succession planning, managing salaries, bonuses, expenses and purchase orders all trackback to the expectations and culture nurtured by HR and with Finance providing a support, the dual goal of maximizing profit and minimizing cost can be easily achieved.

Creating Synergies

A functional company is a product of functional employees and can be improved by managing monetary and non-monetary benefits in balance, together. Working together, the Finance department can improve the bottom line by weighing the human capital of the business and building a perspective that extends beyond just returns on investments. HR managers better understand how every decision the company makes affects the bottom line and roll out policies that reduce employee turnover cost.

The two functions can design financial wellness programs such as retirement plan funds, credit education/enablement, skill upgradation for future growth etc. that organizations can embed and use as regular practice to attract and retain talent. Overall, as companies scale, the biggest impediment, yet a determinant of success, will remain its workforce. It is therefore critical to consistently optimise for a highly competitive and dynamic global business environment. The key to generating maximum output is to work in accord and let the counting bots in Finance play with the HR’s focus lens.

About the author: Senior HR professional & Post Graduate Alumnus of University of Oxford – Said Business School. The author has earlier worked in leadership positions in an erstwhile subsidiary of Brooke Bond, L&T, Welspun Group, ABG Group, ASB (Nissei) and others
*Views expressed in the article are personal views of the author and does not represent any company or organization.

Treat Yourself This Festive Season, With Instant Personal Loans

India is priming for its annual festive overdrive – with a pack of festivals followed by multiple other packs coming up back to back. We’ve already celebrated Onam and Ganesh Chaturthi only recently, and yet have more major celebrations coming our way with Navratri followed by Diwali. Of course, being a society that prides itself in a sense of community and belonging, this means we’re going to find ourselves indulging quite merrily on gifts both ourselves and our friends, family and more. The consumer industry knows this – which is why virtually everything of relevance is soon going to be on sale – from clothes to electronics, to even automobiles, and of course, jewellery. We’re going to be bombarded with glitzy marketing promotions, and compelling advertisements that will, along with the happiness they bring with them, also apply some pressure on our wallets.


Source: Quartz


Many of us may have been adequately farsighted to budget for this additional costs in advance. But it’s the festive season after all, and expenses are certainly going to be overshoot our estimates. As for those who didn’t have the time or energy for budgeting, these expenses could feel like an additional strain dampening their festive mood. Or at least, they used to. Now, with personal loan apps and salary advance portals like Fibe, the festive season can stick to being what it ideally should be – a time for happiness, free of financial stress. With EarlySalary’s quick personal loan approval process and entirely paperless experience, even those who prefer the excitement of last minute planning can spend on themselves and friends without worry.

Low Interest Rates + Instant Disbursal

Unsecured personal loans require no collateral. As a result, banks offering such options often charge unreasonably high rates of interest. But instant personal loan approval apps like Fibe are pioneering a new trend that both keeps personal loan interest rates low, and allows quicker access to funds. As a borrower, you can avail of credit of up to Rs 2 lakhs at rates as low as Rs 9/day. But that isn’t all that glitters in this arrangement. With the option to process your application entirely via a personal loan app, there is zero paperwork involved. This of course, is what powers instant disbursals – with funds reaching your accounts within a matter of hours and days.

Personal Loans For Everyone

Quick personal loans at EarlySalary aren’t an exclusive club – they’re truly democratised and accessible to the vast majority. Unlike banks, the platform does not rely on credit scores alone to assess borrowers. It’s 2019 after all, and there are more modern, more accurate parameters that are indicative of a person’s borrowing capability. 

EarlySalary relies on the Social Worth score – a figure relying on your activity on social media platforms including Facebook, Twitter and Instagram, along with your bank statement data and other parameters. This allows for a far wider net of potential customers who can now avail loans at an instant pace. 

Additional Benefits

Personal loan apps also do away with a lot of other baggage traditionally associated with credit from financial institutions. For example, there are no prepayment charges – rewarding borrowers who can clear their dues in time. Borrowers also get a fair sense of the repayments that will be due right from within the app’s personal loan EMI calculator.

festive season

Get Started With The Celebrations

All these advantages from online personal loan apps make for a fairly compelling offer to sooth our finances during this festive season, allowing us to solely focus on what truly matters – happiness – both ours and our dear ones’. As the country gears to spend big both online and offline, it certainly helps to have a financial cushion that works to its advantage.

Can Millennial Stress be Resolved by Financial Wellness?

Stress is an issue bigger than ever for millennials, who are rushing ahead with their worklife, finding little time to enjoy the intricacies of life. They are not only toiling themselves with projects, preparing reports and meeting targets, but also when off the work they busy themselves worrying about their debt, savings and expenditure.  India has been, off late, a very volatile economy with companies shutting down production and filtering out chunks of employees. As such millennials are forcing themselves to work in return for poorly paid salaries and unsatisfactory job environments. In most of the cases, they are not able to manage their day-to-day expenses and have to revert to debt; while in other cases are confused about their financial course.

A whopping 76% of Millennials say they are experiencing financial
stress, up 23 percentage points from 2018, according to the PwC 2019 Employee Financial
Wellness Survey.

Financial stress is the top contributor in affecting employee health and morale followed by their jobs and relationships. Matching your salary with your expenses is only the tip of the iceberg, when cash flow and debt issues add to the worries. Employees are worried that they are not able to save enough and will face or are facing a financial crunch. Let’s look at the major issues hounding today’s millennials in terms of finance:

Past concerns  

With higher education becoming more expensive each year, an increasing number of new employees enter the corporate sector already laden with the burden of huge debt in the form of education loans or personal loans. As per Workplace benefits report
2017,
40% of millennials say that they left high school and college unprepared for
the real world. As such they look upon their employers for the necessary
guidance and help related to a majority of topics around financial wellness.
18% of millennials want more help with their student loans.

In some cases, these debts may be gifted down from one generation to another. A son may have to pay off a home loan or some other debt incurred by his father. These circumstances dilute the finances and millennials find it difficult to lay away the stress.

Present concerns

According to the 2017 Workplace Benefits Report, a significant number of Millennials say
they feel unprepared to manage their finances and need help with topics across
the financial wellness spectrum, including saving for retirement (43 percent),
general savings help (40 percent), paying down or managing debt (34 percent),
saving for major expenses (36 percent) and budgeting (31 percent). 

Peer pressure, maintaining the status quo and lavish lifestyles often lead millennials to the brink of a financial crisis if they do not plan their finances well in advance. Many are highly ignorant about how to proceed with investments; banks or mutual funds, long term or short term, commodity or shares, and a lot more. About 43% feel that they require more help
with investing, 40% wanting more information on how to save taxes and 21% feel
that they want to save more. It’s an additional issue when they require funds in a lump sum for unforeseen expenditure or a major purchase. They either trap themselves in instalments or else fall in a debt trap. 63% of Millennials consistently carry balances on their
credit cards and two out of five have trouble making minimum monthly credit
card payments.

Future Concerns

Besides provident fund schemes, gratuity and a few other benefits, employees aren’t assured adequately about their future. They remain concerned about their retirement and pension, their children’s education, medical expenses and a lot more. Pension schemes are offered by insurance firms, but which one is best suited remains a matter of concern. Career opportunities and growth also impact future and present decision making. Not surprising then that employees, especially millennials, find themselves to be dependent on their employers.

Why should employers take up financial wellness programmes?

Financial stress not only impacts an employee on a personal level, but his working capabilities and mental faculties get impacted too. Stress can be behind severe health concerns that may lead to employee absenteeism, employee turnover, and dissatisfaction. The issue of financial health becomes of utmost importance to keep the solubility of the firm intact on one hand and to achieve common organisational goals on the other. As per a survey, an employee spends 12 hours on an average each month stressing about their finances. 

Bank of America Merrill
Lynch report
says that the lack of confidence in financial matters affects Millennials’
workplace behavior. On average, employees spend 3 work hours each week (12
hours per month) dealing with financial stressors.

A well thought of and structured wellness programme may act as a tonic for the employees’ financial health:

#1 Making an in depth study of employee concerns before finalising on the mode the financial programme is critical. Not everyone shares the same crisis, and not everyone will desire third party approvals or advice before taking decisions. A financial assessment is essential before you initiate the program and want it to succeed. This can be an eyeopener for those employees who may have been unaware of the causes of their financial stress and will make them ready to adopt the new financial course.

#2 Educating employees about financial health and other resources should be taken care of as well. This can be one through seminars, online courses, or even lectures and classes conducted by an expert or professional.

#3 The employees must be educated on healthcare costs as well. It doesn’t hurt to take this opportunity to promote healthier lifestyles as well. This can save them a lot in the long run. Group insurance schemes and health insurance schemes should be encouraged as a norm in the organisation.

#4 Financial debt management, especially the management of student loans, is another area of focus. Employers, if possible, could even consider taking it upon themselves to sort out the education loan or debt of the employees as a gesture of goodwill. This can be offered as an employee benefit as well. Executed right, the company can go a long way in earning the reputation of being the best in class when it comes to their employees’ welfare.

#5 Then comes the basic question of managing the current expenses such as installments, deductibles, premiums and other expenses. There are several paradigms involved in financial planning and it can be overwhelming for a millennial who has just been placed on his job.

Encouraging employees to take part in these programmes and letting them get involved through participation, and one on one discussion will assist them in reducing their financial stress. The overall focus of the employee can shift to organisational task boosting his productivity and overall efficiency. At the individual level, it will boost their confidence to manage their current expenses and plan for their future expenses in advance. Financial wellness programmes can, therefore, help in improving employee health and quality of life. A healthy and financially sound human resource can be an unending source of profitability and efficiency for any enterprise.

How Organisations Can Measure the Impact of Financial Wellness Programs

Financial wellness programs, coupled with access to tools and resources, can work as a solid foundation for employees in managing their financial needs. While financial wellness programs can be expensive to launch and maintain, many may argue, and justifiably so, that they more than pay for themselves over the long term. They are therefore, a crucial exercise.

An organization, will of course, have a number of HR goals – such as reducing attrition, improving employee engagement, or reducing absenteeism. Achieving these goals, and many more, can certainly depend on the impact of financial wellness programs. But, regardless of the nature of the goals, it is critical to categorize them at the outset and then initiate with the metrics and methodologies to assess the impact.

Given below are some of the goals categorized for easy assessment of the progress of financial wellness programs :

Workforce Management

The effectiveness of financial wellness reflects in multiple statistics – such as turnover rate, rate of retention or attrition. If employees are able to manage their finances well, expect retention to increase, and vice versa. The key here is to provide employees with the appropriate guidance to save as well as spend smartly by keeping all obligatory or urgent expenses in mind. If an organization succeeds on this front, it shouldn’t be surprising to see a more engaged, committed workforce that delivers well, and stays.

Financial Engagement

Increased participation from employees in investments, financial schemes or just more financial awareness in general, is the most direct, visible impact of financial wellness programs. These can be indicative of employees planning their future. Employees may also look for credit assistance on their path to financial freedom – such as via instant loan apps or salary advances. An organisation would do well to make reliable options available on this front too.

Workplace Productivity

It doesn’t take advanced statistics to guess that a financially stable employee is more likely to be committed and deliver at enhanced levels. But beyond the concept, these results can be measured as well. Parameters such as absenteeism, errors/mistakes, cost of errors/mistakes can all indicate how effective financial wellness programs are at the workplace.

Health and Wellness

Engagement in health and wellness plans is also a sign of the success in financial wellness program. With work-life balance constantly threatened by the demands of today’s work culture and other commitments, active engagement in health and fitness activities can be indicative of lowered financial stress and superior time management. Therefore, another parameter to measure health awareness among employees can be engagement with wellness programs, webinars and fitness incentives.

Employee Feedback

Constructive employee feedback is key to the growth, and evolution of financial wellness programs. It delivers critical insights into the expectations employees have, and has the added bonus of earning their confidence in the system. Iincreased usage of employee assistance programs, therefore, is also a favorable outcome.

Crucial as they are to an organization’s development, financial wellness programs also assist employees manage both stress and money, whilst keeping both stakeholders satisfied and productive.