Employee Welfare – Its Benefits and Principles

The Employee Welfare describes “efforts to provide good work-life at the workplace” “Employee welfare is a descriptive concept that encompasses different programs, incentives, and facilities that workers & employers are provided. The employer makes life worth living for workers through such generous fringe benefits.

Welfare includes all that is done to ensure employee comfort and improvement and that goes beyond wages. Social welfare contributes to maintaining employee morality and motivation so that employees can stay longer. The social welfare acts should not only have to be political but in every way. Employee welfare includes monitoring work conditions, building industrial harmony for workers and their families via health infrastructure, industrial relations, disease insurance, and accidents and unemployment.

Employee benefits encompass all of the employer’s acts aimed at delivering such facilities and services to workers, aside from compensation or wages.

Performance, safety, commitment, and happy labor force for the company are the underlying reasoning behind delivering welfare schemes. The goal of providing these facilities is to improve their working lives and to increase their living standards.

This activity comes either through a law formed by the State or through a local tradition or through a collective agreement or at the initiative of the employer:

  • To make philanthropic and paternalistic sensations known.
  • To win the loyalty of the employee and to increase his moral standards.
  • Fight against socialist ideas and unionism.
  • Strengthening secure jobs, reducing labor income and absenteeism.
  • Developing workplace performance and productivity.
  • Save yourself from high surplus taxes.
  • Goodwill and public relations enhancement.
  • Reducing the possibility of further government interference.
  • To increasing the efficacy of recruitment (because these incentives contribute to the work appeal).
Must Read  Objectives of Employee Welfare

Benefits of Employee Welfare

The major benefits of welfare can be summarized as follows:

  • Provide staff with improved physical and mental health and foster a safe working atmosphere.
  • Facilities such as accommodation, medical care, and schooling and leisure facilities for the families of staff help raise their living conditions. It allows staff to concentrate more on work and thereby increase productivity.
  • By having healthcare services, workers provide a stable workforce. Workers are deeply involved in their roles and work with a sense of engagement.
  • The welfare measures of employees increase organizational productivity and promote sound industrial relations, maintaining industrial peace.
  • The welfare policies are raising the social evils prevalent among work such as drug abuse, etc.

Principles of Employee Welfare Schemes:

In general, the principles to be followed in establishing a welfare service for employees are:

  • The service should meet the workers’ real needs. This means that the manager must first determine with active involvement by the employees what the true needs of the employee are.
  • A cafeteria will be used to manage the operation. Benefits are significantly different due to their variations in sex, age, marital status, the number of children, the nature of the job, and the amount of wages for workers. This is known as the cafeteria Approach. The value method is individualized under such an approach, though procedures and administration can be challenging.
  • The employer should not take a caring position.
  • The cost and funding of the operation should be measured in a reasonable manner.
  • A periodic review of the service should be carried out, and input should be received in a timely manner.
Must Read  Statutory Welfare Schemes

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Referencing Style to cite this article:

Projects4MBA (October 20, 2020) Employee Welfare – Its Benefits and Principles. Retrieved from https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/.
"Employee Welfare – Its Benefits and Principles." Projects4MBA - October 20, 2020, https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/
Projects4MBA August 18, 2011 Employee Welfare – Its Benefits and Principles., viewed October 20, 2020,<https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/>
Projects4MBA - Employee Welfare – Its Benefits and Principles. [Internet]. [Accessed October 20, 2020]. Available from: https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/
"Employee Welfare – Its Benefits and Principles." Projects4MBA - Accessed October 20, 2020. https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/
"Employee Welfare – Its Benefits and Principles." Projects4MBA [Online]. Available: https://www.projects4mba.com/employee-welfare-its-benefits-and-principles/118/. [Accessed: October 20, 2020]

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