Convert employees’ debt into savings
- Published on 20 Mar 2013
- HR Pulse News Desk
With the increasing levels of debt in South Africa, and over 2 million garnishing orders in place, employers are being faced with increased levels of absenteeism, low morale and unrealistic expectations when the time comes to increase salaries. But with RESET, this is a thing of the past…
RESET is a web-based online application that empowers employers to help their employees to – wherever possible - convert debt into an improved personal monthly cash flow.
“The RESET approach is not about consolidating debt with a maximum loan. This is not always possible, is often unrealistic and does not necessarily yield the greatest savings. RESET is, however, about establishing a debt structure which delivers the maximum monthly savings or improved cash flow for the employee,” says Theuns Hanekom, co-founder of Blue Oak Systems, which launched RESET.
Putting extra money in an employees’ pocket can boost morale
This in turn addresses turnover rates, absenteeism and overall employer – employee well-being. Morale has been negatively affected as the deterioration in economic conditions has affected employees and employers. Employees are desperate for a salary increase at a time when many companies cannot afford increased costs – and this creates a negative working environment.
RESET can often unlock that extra cash flow the employee needs, is very simple and takes a few minutes to complete.
How does RESET work?
1. The employee captures his ID number and RESET collects the essential information on his current unsecured debt from the credit bureau.
2. RESET then calculates what consolidating loan amount the employee would require and which accounts, if settled, would yield the maximum monthly savings. The employee gets the amount they save within minutes.
3. If the employee feels these savings are enough, he’ll move to phase two, which involves a specific report on how the savings can be realised.
They can then either approach their own bank with the debt restructuring plan or move to the next phase.
