Increased production and expanded product lines are standard methods businesses use to improve their bottom line and survive in a competitive environment. However, the key to increased profits may have more to do with supporting an employee's financial well-being than creating more products for customers.
A recent study found that 78% of employees with significant financial stress are distracted at work. Businesses that recognize the connection between an employee's financial concerns and loss of productivity will be in a better position to grow their business. An employer's participation in the Income Advance program could result in a highly satisfied and engaged workforce.
What Is The Income Advance Program?
Vermont Federal's Income Advance program is a financial wellness solution designed to meet an employee's short-term financial needs while laying the foundation for improving their long-term financial health.
The program is a partnership between employers and Vermont Federal. Employers screen employees for program eligibility and the Credit Union approves a small loan, up to $1,000. The loan meets the short-term needs of a hardworking employee while providing them with lasting skills to build financial stability.
How Does It Work?
An employee completes a program application through your Human Resources (HR) department. The HR representative notifies the Credit Union that the employee has met their basic eligibility requirements and is prepare to submit a credit union loan request.
Most loan funds are disbursed the same day the loan application is completed. Repayment is made through paycheck auto deduction. Once the loan is paid in full, the employee can continue the auto deduction into a designated savings account. This continued savings encourages responsible money management and could help the employee weather future financial issues without borrowing money. It's a win-win for employers and employees.
Employer Benefits
Employers who participate in the Income Advance program remove the administrative burden of in-house employee loan programs. The Credit Union handles the loan application, disbursement, and repayment tracking. Businesses find that adding this financial wellness benefits program:
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- Increases retention
- Reduces employee turnover
- Improves productivity
- Results in happier employees
Employee Benefits
Employees who need money to cover an emergency expense may turn to predatory payday loans or attempt to borrow the funds from family or friends. Sadly, these situations provide cash but also additional financial stress, i.e. outrageous interest rates or strained relationships. Employees that participate in the Income Advance program bypass a credit check while gaining same-day access to funds. In addition, they have the opportunity to:
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- Improve credit scores since loan payments are reported to at least one major credit reporting bureau
- Build an emergency savings fund if they continue automatic payroll deductions after the loan is repaid
How do I Get Started?
Adding a financial wellness benefit to existing employee compensation packages could help your team reduce stress, stay engaged, and increase productivity. With no fees or prior business relationships required, there's no reason to delay. Get started by contacting Sarah Marshall at (802) 923-1240 today! It could be the best move you make this year for your bottom line.
About Vermont Federal Credit Union
Vermont Federal Credit Union is a $900 million-plus full-service, not-for-profit, cooperative financial institution that has served Vermonters for more than 70 years, with eight locations currently serving over 50,000 members. Members are part of a cooperative, meaning they share ownership in the Credit Union and elect a volunteer board of directors. Vermont Federal Credit Union provides membership to anyone who lives, works, worships, or attends school in Vermont. Vermont Federal Credit Union is committed to supporting its communities and helping Vermonters prosper, no matter where they may be on life’s journey. Learn more about Vermont Federal Credit Union.
