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Thursday, September 4, 2025

HR process: loan assistance to staff must be documented and with limits of prudence

Providing outstanding amazing values through process clarity and improvement 


1.  When an employee is in need due to health, education emergency we extend up to 2 mos salary loan via Majorem at nominal friendly rates.

2.  The prudent limit is loan amortization is not more than 30% of of take home pay;

3.  When the employee borrows more we have to ask info on:

      Other loans:
       Pag ibig 
       SSS
       On line lenders
      Total

       Household expenses total amount

     in which case the total loan amort should not be more than 50% of total salary  If the loan is for                house construction, an REM should be executed, in addition to co signer

 4.  We avoid huge loans that can impair our working capital, or that are clearly beyond the affordability of the employee.   Refer to Pag ibig if this is for housing purposes.   We avoid taking long term loans to avoid making the  company hostage to the loan

  5.  Such financial burden leads to:

        1.  Loss of interest and productivity in the job because he cant help his family any more
             Most work for the family and less than 50%  take home pay is a huge disincentive

        2. Dishonesty, GP, COI business within the business, collusion OP, and theft.

        3.  Let us prosecute offenders

    6.  Drill employee on financial literacy:

         1  Frugality

          2  Wise purchase

          3  Strive to be promoted legally within the system;   encourage motivate staff on how to get
                promoted

          4.  Inspire motivate staff

          5.  Budgeting

           6.  Hustling from home, legit money making outside of the business

    7.  Drill employee on morality, ethics and character

            1.  COI

             2.  Creeping of PHP temptations

              3.  Crossing the borderline

               4.  Ethics, morality and legality

          We shout out vs graft and corruption in the govt, but we can be blind to what our staff and companions do amidst us.   Bad influence, bad motivation/inspiration

Please be guided accordingly



      

      






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