Factors Influencing Income Allocation and Savings of Employees in Private Organizations

Abstract

In the context of a rapidly changing economic landscape, understanding the determinants of personal financial decisions is critical for both individuals and organizations. This study explores the factors influencing income allocation and savings behavior among employees in private organizations in Thailand, aiming to understand the dynamics shaping financial decision-making. A mixed-methods approach was adopted, combining quantitative analysis of survey data from 250 employees with qualitative insights gathered through in-depth interviews. The findings indicate that income level, financial literacy, and organizational support significantly impact savings behavior. On average, employees allocated 22% of their income to savings, with variations influenced by financial literacy levels and long-term financial planning awareness. Employees with higher financial literacy saved 12% more of their income than their counterparts, underscoring the importance of financial education. Moreover, 60% of participants reported saving regularly, with 55% prioritizing long-term goals such as retirement or home purchases. Organizational factors, such as the provision of financial counseling programs, were found to enhance employees' ability to allocate income effectively. The study concludes that promoting financial literacy and providing organizational support are critical for fostering effective income allocation and savings habits. Recommendations include implementing workplace financial education programs and encouraging personalized savings plans to empower employees in managing their financial well-being.