Meaning, need for Employee Welfare

1. Anything done for the comfort and (social or intellectual) advancement of workers, beyond the payment of money, is referred to as employee welfare.
2. Put simply, it refers to “the efforts made to make workmen’s lives worthwhile.” It consists of a range of amenities, services, and facilities offered to staff members in order to improve their lives. Progressive business owners may choose to provide these amenities freely, or legal requirements may force them to do so. Alternatively, if the government or labour unions have the necessary funding, they may take on this responsibility.
3. As stated by the ILO, “Services, facilities, and amenities which may be established in or near undertakings to enable the persons employed in them to perform their work in a healthy and peaceful environment and to avail themselves of facilities which improve their health and bring high morale” should be considered employee welfare.
4. The goals of employee welfare include enhancing working-class lives, fostering the overall development of employees’ personalities, and other related goals. The interests of the employee, the employer, and society at large are all served by employee welfare. It makes it possible for employees to work in a comfortable and healthy setting.
5. Because of this, it increases worker productivity and keeps them happy, which raises staff morale. Additionally, it instils in the workers a feeling of accountability and dignity, transforming them into deserving citizens of the country.
6. Employee welfare includes whatever the company does to raise workers’ standards of living and maintain their happiness in addition to paying them a paycheck. Employee welfare includes all of the amenities, services, and perks that an employer provides to his staff in an effort to make their lives more enjoyable.
7. As stated by the ILO, “Services, facilities, and amenities which may be established in or near undertakings to enable the persons employed in them to perform their work in a healthy and peaceful environment and to avail themselves of facilities which improve their health and bring high morale” should be considered employee welfare.
8. The purpose of employee welfare is to make workers better off. It entails adjusting a worker’s personal and professional lives to fit into the neighbourhood and social scene. Welfare measures may be mandated by legislation or be voluntary (prescribed under labour laws).
9. The necessity for the significance of employee wellbeing is becoming more widely recognised in the globe of civilization. Welfare is a dynamic notion that means various things in different nations and at different eras within the same country. These variations depend on the social structure, degree of industrialization, dominant value system, and overall level of social and economic development.
10. Some refer to labour welfare or employee welfare as “an attitude of mind,” while others only list the programmes and policies that fall under this category. Some people highlight the voluntary aspect of actions and include those that businesses perform above and above what is mandated by law. Some people define labor/employee welfare measures as limited to those that are required by law.
11. “Employees’ welfare should be understood to mean 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,” states the International Labour Organization (ILO).
12. Welfare work is the voluntary work that an employer does for their workers’ intellectual, physical, moral, and financial well-being—beyond what is required by law or what the employee may have negotiated for as part of a contract.
13. Therefore, by this definition, we could include things like housing, access to healthcare and education, nutrition, leisure and rest areas, cooperative societies, daycare centres and nurseries, sanitary provisions, paid time off, voluntary social insurance measures on the part of the employers, and programmes like provident fund, gratuity, and pension, among others. Welfare is thus a rather nebulous phrase.
14. The need for labour welfare is particularly critical in India, a country that has undertaken a massive industrialization programme, as it fosters a positive work environment, maintains a stable and competitive labour force, and contributes to the maintenance of industrial peace, all of which increase employee productivity.
15. Welfare measures were given the proper attention in the industrial policy declarations and subsequent five-year plans as a result of this necessity. The Central Government, State Governments, Employers’ Organizations, Workers’ Organizations, and Statutory Welfare Funds are the entities in charge of implementing welfare programmes.
16. Welfare funds in the coal, mica, iron ore, manganese ore, limestone and dolomite mines, and beedi industries have been established to support worker efforts and State Government efforts in providing welfare facilities.
17. The primary initiatives funded by the fund are those related to general welfare, including housing, water supply, healthcare, education, and leisure. The cess on the production, use, or export of minerals—and, in the case of beedis, on the produced beedis—has generated the money.
18. Concept of employee wellbeing
19. The phrases “workers’ welfare” and “employees’ welfare” are interchangeable and refer to a range of extra services that firms provide to their workforce in addition to pay. “Anything done for the comfort and advancement, intellectual or social, of the workers above and beyond the money provided, which is not a need of the enterprise,” is what Arthur James Todd defines as “employee welfare.”
20. Employee welfare, according to an ILO publication, should be understood to include any services, facilities, and amenities that may be set up in or near undertakings to allow the people who work there to do their jobs in a safe and tranquil environment and to take advantage of amenities that boost morale and promote health.
21. Employee welfare is a dynamic notion as societal changes and new welfare initiatives are always being added to the ones that already exist. It is also an all-encompassing idea. The contemporary definition of employee welfare encompasses any actions taken by businesses with the intention of offering their staff additional benefits and services beyond compensation.
22. These are not acts of kindness or charity from the employers to the employees; rather, they are supportive services meant to boost employee morale and help the company meet its goals. Offering workers essential perks like health insurance, recreational opportunities, retirement plans, etc. is not just in their best interests but also the organization’s.
23. If such services are offered to them, workers feel devoted to the company and are happy. Welfare services are vital to the organization’s health even if they are just maintenance elements and not motivators because of their strong relationship to employee productivity.
24. The following are the fundamental components of labour or employee welfare:
25. I The phrase “labour welfare” refers to the range of goods, services, and facilities offered to employees with the goal of enhancing their social standing, economic well-being, and overall health.
26. (ii) Regular pay and other financial advantages that employees are entitled to as a result of legal requirements and collective bargaining are in addition to welfare measures.
27. (iii) Workplace welfare policies are adaptable and dynamic. Periodically, new welfare initiatives are introduced to the ones that already exist.
28. (iv) Employers, the government, workers, or any social or philanthropic organisation may propose welfare measures.
29. (v) The goal of labour welfare is to help employees grow into well-rounded individuals who are both excellent employees and good citizens.
30. Workplace Well-Being Objectives
31. The following is a discussion of employee welfare goals:
32. I In order to raise staff morale levels.
33. (ii) To develop an obedient, happy staff inside the company.
34. (iii) To improve the workers’ perception of the organisation.
35. (iv) To make life pleasant and comfortable for the workers.
36. (v) To increase employee productivity.
37. (vi) To lessen the impact that labour unions have on employees.
38. (vii) To reveal the company’s charitable and humanitarian endeavours.
39. (viii) To convey to the staff that the business values them.
40. (ix) To cultivate a favourable outlook about one’s work, employer, and management.
41. (x) To lighten the tax load.
42. (xi) To cultivate a sense of contentment among staff members toward the organisation.
43. (xii) To build a feeling of inclusion inside the organisation.
44. (xiii) To retain talented and competent employees.
45. (xiv) To improve interpersonal relationships.
46. (xv) To stop social ills like drinking and gambling by enhancing social circumstances, cultural events, and working environments.
47. Work pertaining to employee wellbeing is very important for the following reasons:
48. Absence of a robust trade union movement: Welfare work assists industry workers in standing on their own two feet, thinking clearly and methodically about their interests, moving forward together, and contributing to the development of the country in the absence of robust trade unions and effective leaders.
49. Poverty: One of the primary drivers of labour welfare activity provision is poverty. The majority of Indian labourers are impoverished, making it difficult for them to provide their families a healthy lifestyle and a top-notch education for their kids.
50. Illiteracy: There aren’t many educated workers in India. Because they lack literacy, they are unable to comprehend the issues facing industries, grasp national and personal interests, or get advanced industrial training.
51. Low level of nutrition and health: The Indian labour force is still malnourished and unwell because of their lack of education and poverty. Their efficiency and production suffer as a result.
52. Absence of healthy recreation: Workers who don’t have enough leisure time engage in criminal activity and other bad habits. To keep employees productive, employers must to provide opportunities for healthful leisure.
53. Lack of training: India has a relatively small proportion of workers with formal training. For such a large workforce, training facilities are thus essential..