What is Employee Financial Support? Purpose and Role

Financial support  in being a solution to dealing with employee problems that don’t go away.

This problem needs to be addressed as soon as possible because it can impact on the disruption of work productivity and company operations.

One of the problems employees often face and beyond their plans, in this case, is a financial crisis.

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Based on a study from  Alight International  regarding  the Workforce and Wellbeing Mindset Study  in 2022:

60% of employees  feel that their salary or income cannot cover their basic expenses

Although companies in Indonesia are starting to implement many employee welfare programs. Financial welfare programs  such as  financial  support are often neglected.

Through this article from Mekari, various discussions regarding  financial support  and its impact on employees will be presented.

Financial Support Role 

Financial problems or crises  can affect employees in various aspects, one of which is self-pressure and prolonged stress.

Based on  a survey from PWC :

32% of employees  say that financial stress affects their health,  32%  affects relationships at home,  21%  affects work productivity, and  10%  affects work attendance.

The role and function of the existence of  financial support  in a company is to help alleviate problems or financial crises that the company’s employees are facing.

However, what becomes a mistake is when  financial support planning  only targets goals in the short term and not in the long term.

This is entirely a mistake because if the program is only targeted in the short term, it is likely that similar problems may arise in the future.

There are 6 aspects that can play a role in helping employees if  financial support  can be planned properly and appropriately, namely:

  • Clarity : Gain a clearer understanding of the financial plan and how to do it.
  • Empowered : Employees feel empowered and more confident about their finances.
  • Peace of mind : Employees become less worried about their finances so they can focus more on their work and career.
  • Decision  Making : Employees can now make more informed financial decisions.
  • Orientation to the future : Employees get a clearer picture of the future and the achievement of their financial goals.
  • Better prepared : Every employee now is much better prepared to face the future and various stages of life.
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Forms of  Financial Support 

There are several forms  of financial support  that you can implement in your company and help overcome the financial crisis that employees face, including:

Discount Offers and Promos 

Product discounts and promos are included in  financial support  which can be a way to help relieve financial pressure in dealing with daily life needs.

This is because discounts and promos can help reduce employee costs through cutting product or service prices.

The provision of this assistance can be started by collaborating with or affiliated with service providers and services.

In addition to cutting employee expenses, discount offers and promos can be an illustration that the company values ​​the existence and hard work of employees.

Flexible Employee Pay

Currently, the majority of company salary payment systems still apply the traditional payment system at the end or beginning of the month (monthly system).

In fact, a monthly payroll system like this is basically not in accordance with the needs of the workforce, which is sure to face financial problems that can arise every day unplanned.

This will continue to happen because there are still various factors in managing payroll that are still a problem, such as the complexity of the payroll process and the lack of digital integration.