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Salary Advance an essential employee benefit

Employee engagement benefits have come a long way from annual leaves and provident funds. Now, to attract talent and drive-up workforce productivity, employers have to provide a range of benefits and benefits programs. 

Attracting and retaining good talent has become more challenging in post-pandemic India, with the attrition rate increasing by 15% since 2019. A troubling trend that is likely to grow further amidst the Great Resignation. Of all the employee benefits that currently exist, few are as practical in ensuring the employee’s wellbeing as a salary advance.

What is a salary advance?

A fixed salary at the end of every month should ideally guarantee financial security. Well, sometimes life doesn’t run so smoothly. Sudden sky-rocketing expenses or medical emergencies can quickly eat through an employee’s salary and savings. It is in these moments you need financial coverage until your salary arrives. With salary advances, employees can access a low cost, secure means of liquidity.

Simply put, salary advance is a new-age borrowing option that is nothing but a short-term loan where the employee can borrow a portion of their salary in advance from their employer or external platforms in times of crisis. An advance on an employee’s salary can help employees overcome a momentary setback without opting for a bank loan. With FinTech platforms, employees have access to flexible products that can help take care of financial needs. 100% digital onboarding, quick disbursals and overall increased transparency have helped spur the growth of personal salary advances, especially within the pandemic.

What does advance salary mean to companies?

With an advance salary, companies can demonstrate that: they care and they understand. With a salary advance, employers demonstrate that they know how much that early credit is needed to focus on the job and to boost morale in difficult times. And when an employee knows that their company cares it shows in their boosted productivity and focus, their loyalty and overall engagement.In addition, you don’t need a great CIBIL score to avail of this benefit.

Early repayment can go a long way towards helping an employee, without a credit history, to build a healthy credit score. A study by Catalyst Fund in 2020, found that salary advances are lifelines for gig workers since 83% of gig workers reported that their salary runs out by the end of the month. Salary advances provide a line of credit that helps them cover costs such as insurance premiums and petrol.

Overcoming Roadblocks with Batik

On Batik, employers have the opportunity to access a wide range of financial benefits. We have partnered with best in class benefit providers to enable employers to avail multiple financial products & services for their employees based on their needs. With Batik, the employee is the customer and can choose the provider that best meets their needs. In addition, they have access to a portal where receiving credit and repayment can be done with ease.

For the provider, their ability to verify the potential customer has become easier due to their direct access to companies. With the help of Batik, the modern platform for holistic employee benefits, advance salary loans are just one of many employee benefits. 

With Batik's employee benefits & perks platform, businesses can opt for employee benefits programmes that can help them win the talent war and provide benefits that employees actually use and care about. While employees can have a user-friendly touch point through which they can discover and avail the benefits activated for them by the employers. Employees can have access to healthcare benefits for mental health, travel tickets, electronics discounts and much more. Batik partners with the best benefit providers to give a wide array of options for both employers and employees to choose from.

For providers, there is easy access to a large customer base across age groups and geographical boundaries, thus increasing brand penetration. With a verified contact base and a special sales analytics platform, partner companies can leverage these capabilities to build brand loyalty.  

Our team believes that the ideal employees’ benefits management should allow a win-win situation for all stakeholders. In this digital age, it is important to translate this management into a marketplace that streamlines and centralizes processes to ensure greater visibility and choice for all: employees, employers and providers.

To learn more about what Batik has to offer, get in touch with us at contact@startbatik.com or visit us at www.startbatik.com.

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