Employee welfare

 

Employee welfare


The services and benefits that an employer offers for the well-being of its employees are referred to as employee welfare, also known as staff welfare. It covers facilities, paid days off, and healthcare. These services cover both mental and physical health of staff members, encouraging a productive and happy workforce.

Figure 1: Employee welfare icons



Employee welfare policies

According to, Board, (2024), and Pelago, (2024), the employee welfare policy discusses employee welfare initiatives' purpose, applicability, and scope. Some examples of employee welfare policies are:

  1. Flexible work arrangement policy
  2. Insurance policy
  3. Sick leave policy
  4. Healthcare policy
  5. Skill development policy
  6. Employee wellness policy
  7. Childcare policy

 


Figure 2: Employee benefits

Benefits of employee welfare

According to, Global, (2022), the advantages that an organization provides will change depending on its location and business environment. Certain benefits for employees vary by nation. For example, in the US, health insurance is a major part of employee benefits packages. In France, a lot of workers receive daily restaurant coupons.

Some benefits are legally required, depending on the nation and area. Statutory or legally required benefits are those that employers are compelled by law to offer. The benefits that each employer decides to offer are known as optional benefits


Source: AIHR, Figure 3:  AIHR model for employee benefits


  • According to, Pelago, (2024), cost savings: By reducing employee attrition and raising productivity, an investment in employee welfare can ultimately result in financial savings for the business
  • Decreased staff turnover - Satisfied workers are less likely to quit, which can result in a stable workforce and a happier workplace
  • Increased productivity and morale among staff members – Workers are more likely to be happy and successful at work when they feel valued and have their basic needs met.
  • Improved public perception of the company – Employee welfare programs make a company appear more sympathetic and caring to the general public.

  

How do you build an Employee Welfare system?

According to, Pelago, (2024), and Duncan, (2021), the best method for developing an employee welfare system will differ based on the particular requirements and organizational culture, so there is no one-size-fits-all guide. But to design an effective Employee Welfare system, some crucial steps are as follows

  1.  Set up your aims and goals. What is the supposed outcome of your Employee Welfare system? Are you trying to minimize staff turnover, raise productivity, or enhance employee morale? Establish clear goals and objectives that can be calculated so that you can monitor your development over time
  2. Form a task force or committee to plan and execute the system. All organizational levels should be represented on this committee, and if needed, outside experts should be included as well
  3. Develop a framework for regulations. Rules on eligibility, benefits, and administration should be incorporated into the policy framework.
  4. Design a communication plan. All staff members should be informed about the Employee Welfare system, and the committee should be accessible to address any queries or worries
  5. Create the system and monitor its development. After the system is in place, it is critical to monitor its performance and make the required modifications to make sure it is fulfilling the initial set of goals and objectives (Pelago, 2024).

 

Conclusion

In today's job market, the various types of benefits that an organization offers its employees are important. Pay by itself is insufficient to keep workers motivated and draw in fresh talent, as employers are now expecting greater benefits for their labor. HR professionals must understand the range of benefits available and decide which ones their company should take into consideration

 

References

Board, H. H., 2024. HR Help Board. [Online]
Available at: https://www.hrhelpboard.com/hr-manual/welfare-policies.html#google_vignette
[Accessed 07 04 2024].

Duncan, C., 2021. DESKALERTS. [Online]
Available at: https://www.alert-software.com/blog/employee-welfare
[Accessed 07 04 2024].

Global, V., 2022. Velocity Global. [Online]
Available at: https://velocityglobal.com/resources/blog/what-are-statutory-benefits/
[Accessed 07 04 2024].

Pelago, 2024. Pelago. [Online]
Available at: https://www.pelagohealth.com/resources/hr-glossary/employee-welfare/
[Accessed 04 01 2024].

 

 

 

 

 

 

 

 

 


Comments

  1. Niluka KarunarathneApril 7, 2024 at 11:19 AM

    The article provides a comprehensive overview of employee welfare, covering its definition, policies, benefits, and methods for building an effective employee welfare system. Good one.

    ReplyDelete
  2. HRApril 8, 2024 at 8:17 AM

    Great analytical path good

    ReplyDelete
  3. RangaApril 8, 2024 at 9:48 AM

    Articale covers the key points of employee welfare and its effect towards the organisation sucess.Nice one.

    ReplyDelete
  4. Ruwini DissanayakeApril 9, 2024 at 9:43 AM

    mployee welfare refers to the services and benefits offered by employers for their employees' well-being, including facilities, paid leave, and healthcare. Such policies range from flexible work arrangements to childcare. Employee welfare can result in cost savings, reduced staff turnover, increased productivity, improved morale, and a favourable public perception. To build an employee welfare system, establish clear goals, form a committee, create a policy framework, design a communication plan, and regularly monitor progress and make adjustments. This system is key in today's job market, where employees often expect more than just monetary compensation. Understanding and implementing appropriate benefits are crucial for HR professionals.

    ReplyDelete
  5. Sachini HithakshikaApril 13, 2024 at 8:20 AM

    For manage employee retention, it's need to have a look on employee welfare given by the company. Well explained article.

    ReplyDelete
  6. Amina MahmoodApril 15, 2024 at 4:10 AM

    This article covers the key points of employee welfare and it's effect.

    ReplyDelete
  7. sudarshiApril 15, 2024 at 11:38 PM

    Welfare includes anything that was done for the comfort and improvement of the employees and is provided over and above the wages.

    ReplyDelete

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