05. Employee Welfare Initiatives and Staff Motivation: A Bridge

 Employee Welfare Initiatives and Staff Motivation: A Bridge

Introduction 

Anything done for an employee's comfort and (intellectual or social) improvement, in addition to the wages received, is referred to as providing for their welfare. It literally translates to "the efforts to make life worth living for workmen." It consists of a variety of services, amenities, and facilities offered to employees for their benefit. Progressive business owners may offer these amenities voluntarily, or they may be obliged to do so by law; alternatively, the government or labor unions may take on this task if they have the necessary funding.

The goals of employee welfare include enhancing working-class lifestyles, fostering the total development of employees' personalities, and other things. The interests of the employee, the business, and society at large all revolve around employee wellbeing. It makes it possible for employees to work in a safe and comfortable atmosphere.

As a result, it increases staff productivity and satisfaction, which helps to maintain strong employee morale. Additionally, it fosters in the workforce a sense of accountability and respect, making the workers good representatives of the country.

Employee welfare encompasses all the company does, aside from paying wages and salaries, to raise the standard of living for its workers and keep them happy. Employee welfare includes all the facilities, services, and benefits that the employer provides to make an employee's life worthwhile.

"Employee welfare should be understood as such service, facilities and amenities which may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy and peaceful surroundings and to avail of facilities which improve their health and bring high morale," the International Labor Organization (ILO) states.

For the benefit of the workers, there should be employee welfare. It entails adjusting a worker's home life and professional life to their social and communal life. Welfare programmers can be either voluntary or statutory (mandated by labor regulations).

In the civilized world, the value and necessity of employee wellbeing are being recognized more and more. According to the dominant value system, social institution, level of industrialization, and overall level of social and economic development, the idea of welfare is dynamic and has different meanings in different nations and at different times in the same country.

Some people define employee welfare, also known as labor welfare, as "an attitude of mind," while others only list the programs and policies that fall within the purview of labor welfare. Some place emphasis on the voluntary nature of actions and include those that companies go above and beyond what is mandated by law. Some people believe that only legally required measures count as labor/employee welfare measures.

International Labor Organization (ILO) defines welfare as

The ILO defines employee welfare as "such services, facilities, and amenities which may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy and congenial surroundings, and provided with amenities conducive to the good health and morale."

Over and above what is required by law or what is anticipated as a part of contractual benefits for which the employee may have bargained, welfare work is the task that the employer must perform on a voluntary basis for the intellectual, physical, moral, and economic advancement of employees.

Therefore, under this definition, we may include housing, medical and educational facilities, nutrition, rest and recreation facilities, cooperative societies, day nurseries and creches, provision for sanitary, accommodation, holidays with pay, social insurance measures taken voluntarily by the employers, and would also include schemes like provident fund, gratuity, and pension etc. The term "welfare" is therefore exceedingly ambiguous.

The need for labor welfare is even more critical in India, which has started a massive industrialization program, because it fosters a positive work environment, keeps the labor force stable and content, and aids in maintaining industrial peace, which in turn increases worker productivity.

Because of this necessity, welfare measures have been given the proper attention in previous five-year plans as well as in industrial policy declarations. The Central Government, State Government, Employers and Their Organizations, Workers' Organizations, and Statutory Welfare Funds are the organizations in charge of administering welfare measures.

Welfare funds have been established in the coal, mica, iron ore, manganese ore, limestone, and dolomite mines, as well as in the beedi sector, to support the efforts of the employees and the State Governments in providing welfare facilities to the workers.

The fund's main expenditures go towards general welfare projects like housing, water supply, medical facilities, and programs for education and recreation. The cases on the production, use, or export of minerals, as well as the manufactured beedis in the case of beedi, has generated the funds.

How Employee Benefits Influence Motivation and Productivity

(i) To create a loyal, contented workforce in organization.

(ii) To develop a better image of the company in the minds of the employees.

(iii) To enable the workers to live comfortably and happily.

(iv) To develop efficiency of the workers.

(v) To reduce influence of trade unions over the workers.

(vi) To expose philanthropic and benevolent activities of the company.

(vii) To make the workers know that the company takes care of them.

(viii) To develop positive attitude towards job, company and management.

(ix) To reduce tax burden.

(x) To develop a feeling of satisfaction of employees with the company.

Employees that feel appreciated by their employer naturally put more effort into their work and the success of the company as a whole. Simply said, individuals are more engaged when they are satisfied with the benefits, they receive from you.

A brief description of the various approaches to employee welfare is as follows:

Policing Approach:

According to this theory, the factory owners exploit the employee in an unfair manner. Instances of exploitation are making the employees work for long hours, paying low wages, neglecting health and safety provisions, providing unhygienic conditions of work, etc. A welfare state enacts legislation under which managements are compelled to provide basic amenities to the workers. Thus, the state assumes the role of a policeman and compels the employers to provide welfare facilities and punishes the non-complier.

 

 Religion Approach:

The religion theory has two aspects namely, the investment aspect and atonement aspect. The investment aspect implies that the fruit of today’s deeds will be reaped tomorrow. Any action, whether positive or negative, is thus, treated as an investment. Inspired by this belief, some employers plan and organize welfare facilities for the employees. The atonement aspect of the religion theory implies that the present disabilities of a person are the result of the sins committed by him previously. He should undertake to do good deeds on how to atone or compensate for his sins.

 

Philanthropic Approach:

Affection for mankind is the basis of philanthropic theory. This theory refers to the provision of good working conditions, creches and canteens out of pity on the part of the employers who want to remove the disabilities of the employees. The philanthropic theory is more common in social welfare rather than in industrial enterprises.

 

Paternalistic Approach:

According to the paternalistic theory, the industrialist holds the entire industrial estate, properties and the profits accruing from them in trust. This trust is not actual and legal but it is moral. The employers provide for the well-being of their employees out of funds under their control. As, the whole enterprise is held in trust for the benefit of the employees, this theory is also called trusteeship theory.

 

 Placating Approach:

When workers are organized and unions are strong, management has to appease them. As crying children are pacified by sweets, workers are pleased by welfare works. This theory is based on the assumption that management can bring peace in the organization by welfare measures.

 

 Public Relations Approach:

According to this theory, welfare facilities provided by the employers to the employees, create a good image of the employer in the mind of the general public. Some employers proudly take their visitors around the plant to show how well they have organized their welfare activities.

 

Functional Approach:

According to the functional theory, welfare work is a means of securing, preserving and increasing the efficiency of labor. Welfare facilities are provided by the employers to the employees to make them more efficient.

 

 Social Approach:

The social responsibility of business has been assuming great significance these days. The social theory implies that an industrial establishment is morally bound to improve the conditions of society in addition to improving the condition of the employees. Labor welfare is gradually taking the shape of social welfare.

2023 Benefits Trends

Some of these might be considered benefits while others are general strategies that will impact motivation, morale, and productivity.

·       Preventative care options

·       Addressing justice, diversity, equity, and inclusion in the workplace will be essential to organizational culture

·       Mental fitness services

·       Low-cost childcare

·       Gym memberships

·       Flexible PTO

·       Birthdays off

·       Pet-friendly offices

·       Recognition

·       Paid time off for Volunteering

·       Remote work

·       Healthy snacks

·       Offer a structured career path

·       Food options

·       Flexible hours

·       Empower managers and employees to make critical decisions

Most popular benefits

Health Benefits

Health benefits do not have to be limited to high-quality healthcare coverage. Every year, take a fresh look at the available plans and policies and ask your current employees what they want in a healthcare plan. Many people want more holistic and alternative care options, such as licensed massage therapy and acupuncture, to be available.

Employee Voluntary Benefits

Voluntary benefits are services or goods paid for in whole or part by the employee but at a discounted group rate made available by the company. Typical examples include supplementary benefits that lie outside of regular benefit packages, such as financial counseling, ID theft protection, healthy lifestyle programs, pet insurance, and supplemental insurance packages, such as travel, life, or cancer coverage.

Retirement Plans

In the past, a retirement plan may have been an optional employee benefit, but now it is essentially required for all firms. Top candidates anticipate that employers will provide a retirement plan. They will consider their own and their family's futures.

Mental and Emotional Health Benefits

This last year was dominated by the topic of well-being, and in 2023, companies’ efforts to accept new and expanded well-being resources will be a prominent focus. Benefits packages should include mental health services.

 

• K, A. (2020). Employee Welfare: Meaning, Objectives, Types, Approaches, Benefits, Schemes. [online] Your Article Library. Available at: https://www.yourarticlelibrary.com/human-resource-management-2/employee-welfare/employee-welfare/99778.

• Mandell, N., 2002. The Corporation as Family: The Gendering of Corporate Welfare, 1890-1930. Univ of North Carolina Press.

• Solis, K. (n.d.). How Employee Benefits Influence Motivation and Productivity. [online] www.lckinsurance.com. Available at: https://www.lckinsurance.com/blog/employee-benefits/how-employee-benefits-influence-motivation-and-productivity#:~:text=Employees%20who%20feel%20valued%20by [Accessed 28 Aug. 2023].