✨ Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️
✨ Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️
Register now
.svg)
Glossary of Human Resources Management and Employee Benefit Terms
Employee loans, also known as salary loans or workplace loans, are financial products provided by employers to their employees. These loans allow employees to borrow money from their employer at a predetermined interest rate and repayment terms.
Employee loans are designed to provide convenient and accessible financing options for employees who may need extra funds for various purposes, such as personal expenses, emergencies, or debt consolidation.
Financial assistance provided by employers to employees, usually at a lower interest rate, to address personal financial needs.
Employee loan interest rates are typically lower than traditional personal loan rates, ranging from 0% to 6%. The specific rate depends on various factors, including:
Employee loans are financial advances offered by companies to their employees. These loans are typically unsecured, meaning they don't require collateral, and are repaid through payroll deductions over a set period.
Here's how the process usually works:
The maximum loan amount available through an employee loan program varies significantly by company and depends on several factors, including:
Employee loan repayments are typically deducted automatically from the employee's paycheck on a predetermined schedule. This ensures consistent payments and simplifies the repayment process for both parties. The frequency of deductions can vary, with some companies making weekly or bi-weekly deductions, while others opt for monthly payments.
The tax implications of employee loans depend on the specific loan terms and the employee's tax jurisdiction. Here's a breakdown of potential tax considerations:
It's essential to consult with a tax advisor for specific guidance on the tax implications of an employee loan in your individual circumstances.
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
.svg)
.svg)
.svg)