Employee Retainer Ship Programs by FinTech Startups

by Finway FSC Empowering People Financially

The marketplace of Financial Services is growing at a rapid pace with the inclusion of new disruptive forces. These disruptive forces have compelled us to reconsider the role of finance and the financial advisors in India, in the industry. Mobile money services, wealth managers, and the traditional financial institutions embracing the cutting edge-technologies like AI, Block chain for making smarter financial decisions. The FinTech is the new financial business model based on technology which is emerging as a huge success in streamlining the on boarding processes, operations, and customer communication. No doubt, FinTech is having a big impact on the current financial market which is presumed to have long-term potential. Even the old school Financial Institutions are forging partnerships with the FinTech companies to double up the operational efficiency. Moreover, the venture capitalist funding is turning into mainstream investments. A recent research based on data collected from PwC’s DeNovo platform noted that the funding of FinTech Startups increased at a CAGR of 41% over the last four years.

Surely, FinTech Startups are bound to grow through all leaps and bounds in the coming decade with the emergence of new and innovative technologies. However, this exponential growth is completely dependent on the talent and commitment of the employees. Every year, hundreds of employees quit big companies to join FinTech Startups with a great enthusiasm for a change and are eager to contribute to the growth of the new business significantly. However, they soon become disillusioned by the workplace or culture at startups and are seen turning back to their old jobs. For Fintech Startups, the ever-increasing attrition rate is a great challenge to cope up with. Therefore, the FinTech Startups in India have started adopting various employee retainership programs to reduce the attrition rate and strengthen the workforce for a swift business growth.

Tuition Reimbursement Programs

Every job candidate seeks both personal and professional development at the hiring firm. They are always desperate to learn new skills and advance their knowledge. And every second employee is seen pursuing part-time courses after their 9 to 5 jobs. Keeping this in mind, many FinTech employers offer tuition reimbursement programs for their employees as a financial assistance if they want to continue their education further. This reimbursement either includes some percent of the tuition fee or the full amount. However, the education or course must be related to the job profile the candidates works on. Where employee retention is the main reason for tuition reimbursement, improved performance of the employee at the workplace is another.

Health & Wellness Programs

Good health leads to great productivity. So, FinTech start-ups launch various health and wellness programs and health insurance as the employee retainer ship initiatives. These include on-site workouts, gym discounts, yoga sessions, and the quit smoking or drinking campaigns. Seeing the employers concerned for their health, employees seem to be more satisfied with the employment.

Open Workplace Communication

Lack of clear and open communication between employers and employees and between the peers add a brownie point to the attrition rate. The inability of an employee to voice his opinion leads to a state of confusion, conflicts, and low morale. By organizing Open House sessions or one-to-one meetings with the employees, FinTech Startups can eliminate any sort of negativity and create a productive and positive work environment.

Monetary Rewards

Bonus paid vacations, anniversary awards, appraisals and other kinds of monetary rewards motivate the employees to work hard every time for the employer. FinTech Startups can conduct competitions or give the employees achievable targets for which monetary rewards are the ultimate goal. These things keep employees satisfied and boost their productivity by recognizing and rewarding their efforts.

Professional Development

FinTech Startups are the prime choice of job aspirants due to the endless learning opportunities available in an SME than an MNC. The on-job learning and professional development at startups make them attractive in the eyes of employees. The start-ups can launch resourceful training and learning programs for their employees and use it as an effective retention strategy. The employees can learn new skills and get much-needed insight into the market competition and trends through the training sessions. The HRs can make the best out of these training programs by getting employees closer to the employers and develop employee loyalty. Offering the employees a pool of learning opportunities, startups can convince the employees that they are interested in investing in them as the greatest asset.

Succession Management Planning

Because startups and SMEs cannot afford a large number of employees, their focus is entirely on recruiting and retaining the top talents in the industry. The process of identification of the potential employees and their development in a company is called succession management planning. The FinTech Startups are investing in succession management planning to identify and retain the best talent in individual employees. The good and hardworking resources for the company are selected and much attention is paid to their skill development because it would eventually contribute to the overall growth of the company. The potential employees who can help a company in achieving its goals are frequently challenged, groomed, and rewarded by the FinTech Startups.

Yearly Appraisals

FinTech Startups are using appraisals and promotions as a motivational tool for retaining the employees. Whenever the employees see their co-worker being rewarded and promoted for his quality work, they explore growth opportunities within the organization and improve their performance. For the startups, this is one of the best employee retention strategies as the cost of hiring a new employee is costly than the cost of retaining the existing employees. Also, the time in training a new joineries saved in case of an existing employee because he already knows about the work culture.