Staff-purchasing scheme offers the gift of education

Staff-purchasing scheme offers the gift of education

Toshiba pumps in-house interest profits into scholarship fund for workers' kids

Natthakarn Sirikumhom felt delighted when she passed her probation period at work three years ago.

Being hired as a full-time employee at Toshiba Thailand Co means she can buy low-cost products from the company while contributing to the education of her co-workers' children.

Ms Natthakarn said she already had a list of the items she wanted to buy.

The purchase programme was designed to make the company's products, from notebook computers to refrigerators, available to every member of their staff.

Staff who join the programme are able to buy products on a low-interest finance plan spread over monthly payment installments.

A boy is tutored by his mother at her office at Toshiba Thailand. The company runs a unique scholarship fund that partially finances the education of the employees’ children. PATTARAPONG CHATPATTARASILL

Without the programme, some of the employees would have little or no chance of acquiring the products, since they are not eligible for credit cards.

The staff say they feel extra incentive to join the scheme as the extra money they pay in interest gets returned to employees in the form of a revolving scholarship fund to help pay for the education of the workers' children.

Ms Natthakarn said the double bonus meant she could afford some new gadgets and household appliances while also helping to ease her co-workers' financial burden.

Ms Natthakarn, an administration clerk, said the notebook she bought through the company's installment programme allows her to work more efficiently.

“The computer keeps me connected to my family and friends,” she said.

“I also use it to prepare my work at home on the weekends,” she added.

Chalsai Rajakitparavisai, Toshiba's senior human resources officer, said 30% of the 4,000 employees at Toshiba Thailand and affiliated firms have joined the programme, which has been running for two decades.

“This programme catches the attention of our employees, particularly those with low wages,” she said.

Under the programme, the employees need a colleague to act as a guarantor but they don't have to make down payments. The installments are spread over a period of between three and 10 months and are deducted from the employees' salary. Staff members are charged an interest rate of 5-6% and the items range in cost from a few hundred baht to thousands of baht.

Employees can purchase several items at one time, provided they have at least 30% of their salary remaining after the deductions.

The interest charges pool into a fund and is combined with contributions from the company.

Ms Natthakarn said the programme is flexible enough to handle the cost.

A series of small payments, of course, takes away the financial stress, she said. “I'm able to better plan my monthly budget.”

If she had bought the products using a credit card and fallen behind on the payments, she would owe a lot of money, she said.

Thanks to the programme, she can get hold of the latest-model products.

Using cash would have required her to save money for a long time, Ms Natthakarn said.

That means the model would be outdated by the time she had enough money to buy it.

Ms Natthakarn has used the programme to buy a television, a fan and a microwave over the past three years.

“What the company offers makes my working life a lot more enjoyable,” she said.

She said the programme allows her to buy things without having to use credit cards, which many of her co-workers can't even qualify for.

Ms Chalsai said the interest charged under the programme, combined with the company's contribution, goes into the education fund for the employee's children.

The company offers about 250 scholarships, worth 3,000 to 10,000 baht, annually to the employee's children who study in preliminary, high school and vocational levels.

“We care about our employees' families,” she said. “We hope that they benefit from this pooling fund.”

Ms Natthakarn added: “I'm glad to be part of contributing to our colleague's children.”

The scholarship scheme also gives her peace of mind that her family will also benefit when she has kids of her own, she said.

“It's always reassuring to know we have a family-friendly benefit programme,” she said.”This little thing goes a long way. It makes you feel more loyal to the company.”

Sitthichoke Rungchangrum, 51, has worked as a maintenance worker for more than 20 years. He said he joined the purchase programme and now his daughter is one of the recipients of the scholarship fund.

Without the programme, he would not have been able to buy a television or refrigerator for his family, said Mr Sitthichoke, a Buri Ram native.

His daughter's face brightened the day the television was delivered to their home, he said.

Mr Sitthichoke said the moment made him feel proud. “Her smile made my heart swell.”

He said it is difficult to keep tabs on household expenditure, but the progamme helps by preventing staff members from overspending since there is a limit on how much they can buy.

His colleagues appreciate the programme, he said.

“Since many of them don't have a credit card, it's great to have the chance to own some basic appliances.”

Proceeds from the programme help to pay for his daughter's tuition fees. She receives 3,000 baht per year from the fund.

He said the financial help would encourage his daughter to stay in school and pursue her education further.

“It may be a small amount to other people but it does mean a lot to my daughter,” he said. “She asked if she will get the scholarship next year and I told her if she behaves and keeps up the grades, she will be rewarded for it. That's the added push.”

He knows he can turn to his company for help if he needs it. He said it feels like a family.

Kobkarn Wattanavrangkul, chairwoman of Toshiba Thailand, said the scholarships are distributed regularly to help employees children with their schooling.

The programme is like a cooperative, she said. The money is generated from within and dispersed to the members.

The capital circulates within the company and ends up helping the children, she added.

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