“An organisation that truly values its human capital as an asset makes an excessive investment on the employees’ welfare than an extravagant expenditure on the publicity warfare.” – Anuj Somany
The above quote is really excellent as an organisation should always consider his employees or labours as an asset and not as a tool. As this is the way through which we can make them understand that they are really important to an organisation. Employee Welfare is a term which includes various services, benefits and facilities that are offered to employees by the employer in order to improve their performance and comfort them. Employee Welfare is also known as Labour Welfare. It covers state of well-being, happiness, satisfaction, conversation and development of human resource. Employee Welfare implies providing minimum desirable standard like health, clothing, housing, education, insurance and recreation. These all facilities helps the worker and his family to live a good work life and social life. Welfare activities helps in increasing the morale of the employees. It also helps in motivation of the employees high so as to retain the employee for a longer period. It is not necessary that the welfare measures should be in monetary terms it can be be in any kind or forms. Labour welfare includes those facilities and services which are in addition to wages and salaries. Employee Welfare is a dynamic concept which varies from country to country and from region to region. It is a flexible and ever-changing concept. Generally, welfare measures are complementary or in addition to regular wages and salaries. Employee Welfare is an essential part of social welfare. The main motive of this is to improve the standard of living of the employees and thereby make a worker a good employee and a happy citizen. These welfare measures help in improving efficiency of the employee. Efficiency gives reward to both employee and organisation. One in the form of increased production to the organisation and other in the shape of higher wages due to higher productivity to employee. Welfare measures help in minimising hazardous effect on the life of the workers and their family members. It helps in preventing social evils like drinking, kidnapping, gambling, etc. and this further helps in improving the personal, social and cultural condition. So some of the importance of Employee Welfare activities are –
- Employee Retention – Welfare activities helps in creating a positive environment for its employees, which helps in retention of employees and a higher job satisfaction among them. Thus, welfare activities helps in reducing labour turnover.
- Improve Standard of Living – Welfare facilities like housing, education, loan, etc help the employee to improve their standard of living and live there life with comfort.
- Improve Productivity and Efficiency – It is often said that”Happy Employees are Productive Employees” and it is correct. If we make our employees happy in some or the other way and if we satisfy their needs they will definitely help us to achieve our goals with more dedication and hard work. So, welfare facilities is also a method to increase our productivity and efficiency.
- Better Focus on Job – Often employees are distracted and disturbed due to their personal problem like non-availability of proper accomodation, education facility for their children, etc and due to these problems they are not able to focus on their work and thus it reduces the productivity and efficiency of the work and the organisation. So, in order to resolve these problems the employer should provide the facilities to their employees and this will help them to focus on their job.
- Preserve Mental and Physical Health – The organisation should provide some sports facilities, gyms and games which will help the employee to work more actively as it will reduce their stress, tension and problems and it will also help in keeping their body and mind sound.
Last But Not the Least
Employee Welfare activities shows the overall satisfaction level that is perceived by an employee from his work. It helps in improving morale and loyalty of employees.