Employee Welfare

What is Employee Welfare?

The word "employee welfare" refers to a lot of different services and benefits that a company can provide to its workers. There may be health insurance, dental insurance, eye insurance, life insurance, disability insurance, paid time off, and 401(k) plans as part of this. Things like on-site daycare, exercise centers, and free meals can also be considered employee welfare.

What are the benefits of Employee Welfare?

For the well-being of employees, there are many perks, such as:

1. More motivated and productive workers—If workers feel valued and their basic needs are met, they are more likely to be happy and productive at work.

 
2. Less employee turnover—Happily employed people are less likely to quit, which can lower employee turnover and make the company more stable.

 
3. Better business image—The public may think that a company that cares for its workers is more compassionate and caring, which can help the company's image.

 
4. Cost savings: Putting money into the well-being of employees can save the business money in the long run by lowering staff turnover and raising output.

Who uses Employee Welfare?

While the word "employee welfare" is usually used in HR, it usually refers to a group of services and benefits that are given to employees. In this group are things like health insurance, dental insurance, 401(k) plans, and other perks. Services like on-site daycare, gym memberships, and other types of perks and rewards can also be part of employee welfare. Employee Welfare is usually given to workers as a way to get and keep good workers, as well as to make workers happier and more productive.

How do you build an Employee Welfare system?

As each company has its own goals and culture, there is no one set way to build an Employee Welfare system. Instead, the best way will depend on those factors. But here are some important steps for making an effective Employee Welfare system:

1. Write down your plans and goals. What do you want your Employee Welfare system to do? Would you like to boost employee morale, boost production, or lower staff turnover? Make your goals and aims clear from the start, and make sure they can be measured so you can see how you're doing over time.

 
2. Set up a committee or task force to plan the method and put it into action. There should be people from all levels of the organization on this group, as well as experts from outside the organization if needed.

 
3. Make a set of policies. The policy system should have rules about who can get benefits, how they should be given, and how they should be managed.

 
4. Make a plan for how you will communicate. All workers should be told about the Employee Welfare system, and the committee should be available to answer any questions or address any concerns.

 
5. Use the method and keep track of how things are going. After setting up the system, it is important to keep an eye on it and make any changes that are needed to make sure it is meeting the initial goals and objectives.

Reference

Perkins, J. (2024, January 22). Employee Classification: A Practical Guide for HR. AIHR. https://www.aihr.com/blog/employee-classification/#:~:text=reliability%20and%20trust.-,What%20are%20the%20types%20of%20employees?,Leased%20employees%20(the%20extra%20type)

Solutions, Z. T. (2022, November 29). What is Employee Welfare, and How Do You Manage It? | Zoe Talent Solutions. Zoe Talent Solutions. https://zoetalentsolutions.com/what-is-employee-welfare-how-do-you-manage-it/

Employee Welfare a top priority for MAS amid economic crisis. (2024, March 19). MAS Holdings. https://www.masholdings.com/media-centre/mas-makes-employee-welfare-a-top-priority-amid-economic-crisis/

[online] [Accessed 01 April 2024]