Employee experience is defined as satisfaction with benefits provided by the workplace, outside pay and basic benefits such as annual leave, financial bonuses, etc.
During the workshop organized by SmartHR, Flipful shared its knowledge, experience and solution on how to increase employee engagement in the company and reduce staff rotation.
What are the findings on the financial literacy of Latvian society?
This year’s crisis has shown how people are not prepared for unplanned spending and financial challenges. This is evidenced by at least the most searchable questions from Google related to financial help.
The FCMC study on financial literacy in Latvia in 2019 revealed rather sad results, especially the tendencies show that more work needs to be done in educating young people on financial planning and savings issues.
The data also show that despite the newly introduced restrictions on quick loans, their amount has decreased by only 10% and in 2019, 585 thousand loans were issued for an average amount of 404 euros.
Finally, in the European Financial Welfare Barometer, which compares 24 countries in terms of their citizens’ ability to pay their bills on time, independence from loans, savings for the future and financial literacy, Latvia ranks 21st with a financial literacy score of 20.6 out of 99, which can be compared to a barely successful student.
So what is financial well-being and how does it affect the employee?
Financial well-being is security for tomorrow and confidence in your finances. Paying bills with no worries, and have something left over. Financial well-being is when you have unplanned spending, there is no need to think about how to pay for it or where to borrow money.
Research shows that financial instability and stress suppress not only a person’s well-being, but also productivity (52%), as well as promote employee turnover (30%) and absence during working hours (47%), according to employers.
How to promote employee well-being in the workplace and how can flexible salaty payment help the issue?
By taking care of employees, companies have introduced various benefits that help to create a positive atmosphere in the workplace and increase productivity in general. Some of them are:
– Health Insurance
– Contributions to the 3rd pillar pensions
– Paid educational and team building activities
Employers have also included elements such as financial management and budgeting tools, financial health indicators and pension calculators in their wellness programs.
One of the financial tools that helps to establish a healthy relationship with your finances is the flexible salary payment offered by Flipul. Why does it contribute to financial well-being?
First of all, it is an opportunity to receive the earned salary at any time when it is needed. For an employee, this can be an unplanned payment, for example, for car repairs or a visit to a doctor. And the opportunity not to borrow from third parties, but to use your own funds, will help to avoid the “trap” of quick loans, as well as to manage your finances even more carefully in the future and consider the possibility of making savings.
Second, the trust factor from the company when giving control of employee finances to the themselfs. It also stimulates employees to think about savings and responsibility, as mentioned above.
Thirdly, unlike an advance, the money is credited to the salary account instantly, which is useful if the funds are really needed here and now. There is no need to coordinate the advance and go all the way from the manager to the accountant.
And finally, this method also helps to take care of employees’ emotional state. Not everyone can say openly that they have financial problems and ask for an advance to solve them, as there may also be unnecessary questions about the purpose of using the advance, but with the Flipful application, the employee can be sure that such an awkward situation will be inevitable and can deal with the situation faster and efficiently on their own.