NOW MSMES CAN PROVIDE EMPLOYEE BENEFITS LIKE LARGE ORGANIZATIONS
Employees are the first brand ambassadors of any business. If employees are happy and satisfied, the company is more likely to have a good reputation among partners, customers and society in general, and vice versa. This is one of the reasons why companies put in place employee-friendly policies.
While being keen on having policies for the financial security and the wellbeing of employees, MSMEs face the challenge of finances and struggle to retain talent. Today the financial services sector offer unique financial solutions that can address the challenge of financial loss or damage during everyday operations and in employee retention through group health insurance plans.
“Financial security and independence are like a three-legged stool resting on savings, insurance and investments” – Brian Tracy
Insurance is the first thing anyone needs, be it an individual or a business. Business interruption insurance covers the potential loss of income a business may suffer in the wake of a disaster. The income loss covered is due to the closing of the facility because of the disaster or due to the need for rebuilding. MSMEs missed out on business interruption insurance due to high premiums, because of limitations of reach, and in many cases because of lack of awareness.
Increased digitalization and online consulting by financial services providers have addressed the issue of reach and MSMEs can now easily avail of business insurance to mitigate any potential risks. Another important tool available for MSMEs is group insurance, which is a type of insurance that covers people in the same company. Group plans provide insurance coverage to all employees irrespective of their age, gender, occupation, or socioeconomic status.
The company bears the cost of the insurance premium and can claim it as a business expense. The company is eligible for the necessary tax benefits as per the laws within specified limits. A win-win for both employees as well as the employer.
MSMEs form the backbone of the Indian economy and play a huge role in driving its growth. MSMEs will play an even bigger role in economic growth in the coming years and decades. It is important for MSMEs to take steps for their own as well as employees’ growth. Employee retention is an important aspect for any business or company to grow smoothly. Employee’s experience is directly proportionate to customer experience.
Only a few visionary leaders realize this critical interlinkage between employee experience and brand equity. With the latest technological tools and financial tools available at their disposal, MSMEs can think and behave like large companies in terms of employee experience without burning a hole in their pockets. A group SIP in mutual fund product alternative to EPF where money is invested in the equity market on regular basis can create good wealth over a long term. This can be done by employers.
The writer is the Founder and CEO of MP Financial Services, a leading financial services solutions provider based in Ahmedabad
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