“I am Always Broke on 2nd Week of The Month, Can I ask For Advance?” HR Advices

Joel Nyakundi is an accountant at a pharmaceutical firm, and every 15th of the month he asks for a salary advance.

Among his friends, he always has money to wine and dine in the most high end joints during end month. This month however, things didn’t go as planned. When he applied for the advance his employee refused the advance citing that it was not financially wise for him to carry on with the habit and if he wanted to be more financially responsible he should altogether stop taking salary advances.

A similar question was posed by Jackson Ouma Oyamo a HR Practitioner opined that, “Research has shown that salary advance do not serve it intended purpose and encouraging poor financial management by employees. An employee cannot have financial independence because of misusing finances knowing very well that he/she can take a salary advance to bridge the financial short falls. In your perspective as HRPs do you think that salary advance is not helping employees and it is encouraging financial indiscipline?”

Searching for opinions on this very weighty matter, I talked to Martin Githaiga HR Officer at Corporate Staffing Services.

“As a HR officer I do not feel that salary advances should be abolished because in most cases the employees’ reasons for seeking a salary advance are genuine,” says Mr. Githaiga

I sort to know and understand whether the salary advances serve the intended reason and Mr. Githaiga felt that it I did. “Most employees fulfill their needs for even when you see them the following day, they look relaxed unlike the previous day when they stepped in the office to ask for advance.”

He adds that, “Also, if they serve the intended reason or not I don’t mind because after all they are nor stealing from the company, it’s their money; they only choose to ask for it earlier.”

Mr. Githaiga says that the salary advance though have an effect on the employee not being financially independent. “Of course employees who take advances will find themselves with lesser money come pay day and they will be forced to ask for an advance come the following month,

He shares that, “What I would advice is that employees take a salary advance as their last resort, at least three times in a year. To avoid running for the salary advance employees should budget well for the month ahead.”

And what are some of the circumstances that allow for salary advances?

“Emergencies and sudden unfortunate events like death or sickness in the family, but lacking fare to report to work is definitely not an emergency” says Mr. Gitahiga who adds that, “Should giving advances stop altogether it could strain the employees and their performance would go down.” adds Mr. Githaiga

On a parting shot, Mr. Githaiga feels those salary advances are  necessary.

“They are small ways of showing you appreciate your employees because even if you don’t give them the advance they will still go and borrow from banks.”

Money, especially not having enough of it is a weighty matter, what is your opinion on salary advance?

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