Nearly 86% of the formal workforce is expected to find a new job in the next six months - the great resignation, as it's widely recognised now, is here and has upended the relationship between workers and the labor market.
A retention strategy to ensure your employees aren’t jumping ship is not complete without a fintech suite.
We’ve put together a quick four-point map of fintech solutions that could help employers mitigate the great resignation -
Know your employee
There’s enough room to know your employee - a simple HR analytics tool can do that. Based on that data, there’s a whole world of financial wellbeing tools you can offer to your employees. Consider Brightside for instance - a US-based fintech that calls itself an ‘employee-based’ financial health solution. They use data from employees signed up on their platform to tailor a financial well-being plan for each person - everything from helping them increase credit score, refinancing debt, and finding government benefits.
No doubt that money is the lever that moves employment. Irrespective of the industry, payroll problems are bound to leave employees scrambling to leave. When payment is late, insufficient, or rife with errors, your team will notice and they will not take kindly to it. Look at some of the most successful fintechs - Stripe, FlexWage or DailyPay - they’ve made a name for themselves by making payroll processes better. What’s better? They’ve partnered with gig employers to streamline payroll in an unstructured sector and allowed workers to get paid at a time of their choosing.
Payroll flexibility is the magic potion that can work wonders for your retention goals.
Be the first responder
Typically, health premiums have been driven by ‘group policies’ as organizations typically buy umbrella covers for their employees. A Metlife survey found that employees who were rated as “healthy” on a comprehensive scale were more engaged, loyal and productive. A supporting finding is that a comprehensive benefits package was a significant driver of employee well-being. That means going beyond a generic insurance policy to provide a holistic program to manage medical expenses. Take MedPut, a New York-based fintech that funds out-of-pocket medical expenses. It achieves repayment through payroll deductions at 0% interest. The idea is to pay for unforeseen medical expenses without using credit cards and reducing outstanding receivables for providers.
A simple payroll-linked healthcare solution could set you apart from competitors.
The financial therapist
The ‘fintech as a benefit’ solution can only be fully realized if you, the employer, are giving your employees and their families access to financial support in the workplace as a benefit. The support can come in the form of providing no-cost rainy day funds and on-demand financial advice. Just ensuring equitable access to financial tools and information will level the playing field - remember not all employees come from the same socio-economic background. Some may provide for themselves and some for a family of five; easy access to education and money can alleviate stress in the workplace and render happier, healthier, more productive employees.
The great resignation didn’t come out of anywhere - sooner or later, workers were bound to demand for more. And why not? Financial well-being is intrinsically tied to employment.
Companies that have the vision and resources to understand their employees, offer monetary flexibility and are financially intuitive are the most likely to maintain a stable and competitive workforce. And companies that attract the best talent and retain them will be those offering fintech as a benefit solution that adapt to the changing needs of the workforce.
PS: At FinBox, we work with large FMGC majors as well as growth-stage companies to enable a varied suite of employee-driven credit solutions from salary advances, consumer durable credit as well as personal loans. These are provided through the companies’ internal HR systems through seamless integration with the FinBox stack that brings the lenders as well as the entire loan-life cycle together.