Health, dental, meal vouchers, life insurance, transportation vouchers, scholarships, and profit-sharing are well-known benefits in the daily lives of HRs and employees.
Composing a basket of benefits that is attractive for selecting and retaining talent is a major challenge faced by companies. However, in times of crisis and low economic growth, it is necessary to be more strategic and assertive. Balancing costs and offering benefits that stimulate teams, preserve talents, and generate a competitive advantage for the company is a very complex equation to be solved.
In view of this, a benefit that is very common in the public sector has gained strength and grown considerably in the private sector: payday loans. This type of credit allows employees to have access to a credit line quickly and without bureaucracy, with significantly lower interest rates than those applied in the market, and they can use the amount borrowed for the most diverse purposes, from repaying a debt to financing a vehicle.
According to data from the Cream Bank, the granting of payday loans to private sector employees jumped from $ 716 million to $ 1.3 billion when comparing the months of November 2015 and 2019, representing an approximate growth of 82%. Much of this growth is due to the new interest policy in Brazil, which in 2019 brought us the lowest basic interest rate in history, with SELIC at 4.5% pa
It is also worth remembering that payday loans have much lower interest rates than personal loans. While the average interest rate for payday loans is around 35% per year, other types of credit, such as personnel, may increase from 200% per year.
How to have and manage the payday loan as a company benefit?
Offering the payday loan as a benefit to employees is very simple.
As a first step, the interested company needs to establish an agreement with one or more Financial Institutions that offer this type of credit.
Having signed the agreement, employees are already able to use this benefit, as long as they meet the rules established by the company, such as: time in it and respect the margin ceiling.
Managing it is as simple as having it
Currently, there are systems integrated with both company payrolls and bank systems. This consignable margin management software makes HR’s life much easier, reducing the time dedicated to managing this benefit. They allow for the possibility of numerous agreements with financial institutions, which in practice means greater competition and possibly lower interest rates. All this without increasing the time dedicated to the management of payroll.