Employee Welfare - Part Of Company Success

Employee Welfare - Part Of Company Success

“Efforts to make life worth living for workmen” is employee welfare. Things that are included in employee welfare or sort to be achieved through welfare are as follows

To give paternalistic feelings

To win employee’s loyalty and increase their morale

To combat trade unionism and socialist ideas

To build up stable labour force

To reduce labour turnover and absenteeism

To develop efficiency and productivity among workers

To save from heavy taxes on surplus profits

To earn goodwill and enhance public image

To reduce the threat of government intervention

To have an effective recruitment

The chapter on the Directive Principles of State Policy in our Constitution expresses the need for labour welfare.

STATUTORY WELFARE SCHEMES Include[/b][/b]

Drinking water

Facilities for Sitting

First aid

Latrines and urinals

Canteen

Spittoons

Lighting

Washing places

Changing rooms

Rest rooms

Gone is the old style psychological contract for lifelong employment. Employees have become more resourceful at finding ways to demonstrate and increase their worth to current prospective employers. Rewards go along with responsibility, respect, recognition, and relationships.

Reward and recognition systems are taken into consideration on the following grounds:-

Job design

Decision making processes

Pay equity

Performance planning and management systems

Self-direction

Communication

Leadership styles

Professional development

With the coming up of new types of pay programs based on criterion like skill-based pay, total-reward programs, pay-for-performance plans has made the management difficult and a complex process. Workers Participation in Management (W.P.M.) is the tool of employee welfare and this encourages the employees to work hard for more productivity which ultimately increases the turnover of the organization.

The policy responds to :

Improving standards

Developing people

Meeting needs

Strengthening partnerships

Optimizing resources,

And to the board’s principles and values of concern for people, openness and honesty, co-operation and team-work, and flexibility and innovation.

The safe work environment helps person to enjoy working. The work should not pose a health hazard for the person. The welfare measures aim at integrating the socio-psychological needs of employees, the unique requirements of a particular technology, the structure and processes of the organization and the existing socio-cultural environment. It creates a culture of work commitment in organizations and society which ensure higher productivity and greater job satisfaction to the employees. A term which is understood to include such services, facilities and amenities as may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale.

Hence more and more attention is paid to the employee welfare, thus not only catering to employees but indirectly putting in efforts to enhance productivity of the firm.

 

[Dhruv Bindhani]

This article elucidates the concept of employee welfare, portraying it as a strategic imperative for organizational success rather than a mere philanthropic endeavor. It details the various aims, statutory requirements, and modern approaches to employee well-being, linking them directly to enhanced productivity and a positive corporate culture.

Employee welfare is broadly defined as "Efforts to make life worth living for workmen." The article outlines several objectives for implementing welfare initiatives: fostering paternalistic feelings, boosting employee loyalty and morale, counteracting trade unionism and socialist ideas, cultivating a stable labor force, reducing turnover and absenteeism, developing efficiency and productivity, saving on taxes, enhancing public image, mitigating government intervention threats, and facilitating effective recruitment. The inclusion of Directive Principles of State Policy in the Constitution underscores the historical and legal recognition of labor welfare in India.

The article lists Statutory Welfare Schemes that are mandatory for employers, covering basic necessities and facilities such as:

• Drinking water
• Facilities for Sitting
• First aid
• Latrines and urinals
• Canteen
• Spittoons
• Lighting
• Washing places
• Changing rooms
• Rest rooms

Beyond these statutory requirements, the article acknowledges a shift from the "old style psychological contract for lifelong employment." Modern employees are more proactive in demonstrating and increasing their worth, and companies recognize that rewards extend beyond mere pay to encompass responsibility, respect, recognition, and relationships.

Reward and recognition systems are now designed considering factors like job design, decision-making processes, pay equity, performance planning and management systems, self-direction, communication, leadership styles, and professional development. The emergence of new pay programs such as skill-based pay, total-reward programs, and pay-for-performance plans has made compensation management a more complex process.

Workers' Participation in Management (WPM) is highlighted as a crucial tool for employee welfare, encouraging higher productivity and ultimately increasing organizational turnover. An effective welfare policy responds to improving standards, developing people, meeting needs, strengthening partnerships, and optimizing resources. It aligns with core organizational values like concern for people, openness, honesty, cooperation, teamwork, flexibility, and innovation.

A safe work environment is emphasized as fundamental, ensuring that work does not pose health hazards. Welfare measures aim to integrate employees' socio-psychological needs with technological requirements, organizational structure, and the existing socio-cultural environment. This holistic approach fosters a culture of work commitment, leading to higher productivity and greater job satisfaction. The article concludes by reinforcing that increasing attention to employee welfare not only caters directly to employees but also indirectly but significantly enhances the firm's overall productivity and success.