Jakarta, July 4, 2022 – Companies and employees should have a mutualistic relationship. A company can achieve sustainable success when supported by productive employees placed in the correct positions, while employee productivity is closely tied to the welfare provided by the company.
In addition to providing salaries matching employees’ competencies and job scope, companies can play a more significant role, especially when employees face financial difficulties that may affect their performance. Companies can ease employees’ burdens by being the closest entity to provide access to loans. Employees’ track records and commitment can serve as a valid basis for risk profiling. On the other hand, companies can use this as a strategy to retain employees.
Here are some emergency fund access options for employees that companies can implement:
Early Wage Access
With this emergency fund access, employees can instantly request early wages before the company’s set payday. This benefit is also an effort by the company to maintain employee welfare, especially during uncertain times like the recent pandemic. The method involves providing wages before payday based on how long the employee has worked.
Multipurpose Loan
Meanwhile, soft loans provide emergency funds with low interest rates for employees. They are typically available to those with a certain tenure, such as one to five years, and repayment is through monthly salary deductions. Employees usually take out soft loans for home mortgage applications or vehicle loans. Cash advances and soft loans are subject to terms and conditions, such as the loan amount not exceeding one-third of the monthly salary.
Cash Advance (Employee Cash Advance)
Cash advances benefit employees needing urgent funds, such as when a child falls ill and requires hospitalization. The emergency fund is repaid through monthly salary deductions.
Strategic Partnership for Emergency Funds
Suppose companies have limitations in providing emergency fund access to their employees. In that case, they can partner with third parties that assist with access and ideal schemes for the company and employees. Damar Raditya, Group Chief Operating Officer of VENTENY, explained that one solution is the V-Nancial feature from VENTENY, offering three types of employee loans: Multipurpose Loans, Education Loans, and Cash Advances, similar to cash advances.
VENTENY collaborates with several financial institutions licensed by the Financial Services Authority to provide employees with emergency fund access at competitive interest rates. As part of its commitment to optimal risk mitigation, VENTENY is also ISO 27001:2013 certified for information security management systems.
As of March 2022, VENTENY recorded a 200% revenue growth in 2021 compared to the previous year. The growth of Business-to-Business (B2B) segment users reached 161.61%. Currently, VENTENY has more than 200 corporate partners, covering over 200,000 employees who automatically benefit from VENTENY. Besides the B2B segment, VENTENY will continue optimizing its services to the Business-to-Business-to-Employee (B2B2E) segment in 2022. The number of user downloads has increased significantly by 500% since the app was launched on iOS in November 2021.
