Many of companies provide loan and reimbursement features to their employees. It is considered that many employees may be facing some financial and emergencies difficulties. The employees who have those problems will lack focus on what they are working on in the company. Therefore, this feature is important to the company also the employees. Moreover, asking for loans from employers, the employees seem may over more pleasant things for the company rather than asking from the bank which is very strict about the rules. Since the loan has the influential thing on their job satisfaction and faith to the company, the employees who receive the loans from their employers are more stick to the enterprise. Moreover, the workers tend to think about their loans, bills, rent overdue, it will make them lack of focus. However, lending them some loans will be a motivation for them to work more passionate and improve worker productivity. Having loan and reimbursement feature in a company has several pros and cons.
- Employees loans can affect their loyalty
The employees who have received the loans from their employers will be more stick around to the companies and may offer some pleasant things which are good to improve company’s quality. Moreover, they will feel that they are helped by the employers when their time of need can put a big faith to the companies, also make them more committed to the employers and try to repay the loan. Therefore, the retention and work satisfaction will be built.
- Loans make them more focus
The employees must have their difficulties in financial such as overdue rent, family medical bill piling up, and many more financial problems. The employees who concern about those problems tend to more lack of focus while working in the company. It can lead companies decreasing quality. By lending some loans to cover up their difficulties, at least will make them feel relief for certain terms of time while they are trying to repay the loans by working harder to the company. It means they will focus on what they are working on because those all difficulties have been covered by the loans.
- Can create discrimination concerns
When the company provides loans for the employees, they have to look on the employees’ financial criteria review in order to view their ability to repay the loans. The company will tend to lend the loans to the employees who have a healthy economy than they which does not have it. It can make the company up to discrimination lawsuits. If the actual reason about why does not lend the loans to one employee are not documented, the possibility of the business of getting sued for perceived discrimination will be increased.
- Repayment may increase employees’ stress
This situation can occur if the employee asks for the loan to cover up rent billing and utilities regularly every certain period, this can make them more stress rather than help them out from their financial problems. It inevitably affects their productivity in the company. By adding another monthly bill which comes from the loans to the employees who have already had trouble with meeting obligations will make them are more pressured with all the loans repayment. For this kind of case, it is better to have financial counseling to consult what the better things to do rather than extend the loans for the troubled employees.
From those pros and cons, it is better to have set terms in order to keep the company’s protection. This function is to ensure that the loans will be repaid at a favorable rate. Because of most of the employee’s income comes from the workplace, it is easier to make them stick to the terms. The company can deduct the employee’s paycheck at agreed upon terms until the loans are ultimately repaid. To handle the problems that may come from the loans and reimbursement of the company, there is software named SunFish HR. This software is specially created for handling HR problems, and the loan is one of them. The following above will be the further information about loans and reimbursement feature in that you can get from SunFish HR software.
Loans and Reimbursement Feature in SunFish HR
SunFish HR has several modules to take care problems that are related to the human resources. Two of them are Loan Administration Management and Entitlement / Reimbursement Management. The loans one has several benefits such as keeping the best employees and increase their loyalty to the company, maintaining and processing the loan requests and approvals, calculating the loan installment, processing actual monthly payment and calculating the outstanding balance, integrating the loan control and payment with the payroll system, and else. Meanwhile, the reimbursement one has functions like completing paperless entitlement management system which facilitates easy and fast benefit processing, processing online reimbursement requests and approvals, reporting all the reimbursement activities, and else.
SunFish HR software will allow the employees to apply for loan from loans module. The request will be automatically sent to get approval to the human resources department and the higher authorities. The transparency that SunFish HR software give to the company makes easier to track every step of loan processes, and the status can be viewed too. The loans module is designed to calculate loan installment based on valid loan types and current rates. Besides, the monthly payments will be processed by the software. The SunFish HR Loans is created to track manage the loans provided by the company to the employees.
That is all about the SunFish HR’s feature of loans and reimbursement. All the companies’ problem which is related to the loans and reimbursement will be tacked away with this software’ feature. The employees will get the loans, and the company will get their loyalty in a save terms and activities because SunFish HR’s feature can track and calculate all the things and give you the transparent result. It is the win-win solution for two parties.