Employee welfare benefits are given by the organizations in the form of monetary as well as non-monetary.
Monetary Benefits
Monetary benefits mean the benefits which are provided by the organizations in the way of money directly to the employees. The monetary benefits are direct compensation, such as Basic salary, incentives, reimbursement, special allowances, bonus, leave travel allowances, conveyance, and house rent allowances. Pay helps employees feel secure and aid them in satisfying basic needs. The compensation structure in India consists generally of basic pay, dearness allowances; house rent allowances, city compensatory allowance, other allowances, and bonus allowances are given to protect real income against inflation.
Generally, dearness allowance is paid as a percentage of basic pay. Promotion stimulates self-development and creates interest in training and development programmes. Welfare benefits are forms of remuneration provided in addition to cash pay, quantitative value for individual employees, and contingents like a pension scheme, sick pay, and insurance cover. Medical referral schemes are implemented to encourage employees without any tension about medical problems. The objectives of employee monetary benefits policies and practices of an organization are to increase commitment and promote industrial relations thereby maintaining industrial harmony.
Non-Monetary Benefits
Nonmonetary benefits are provided in the form of indirect compensation, such as flexible timing, holiday homes, retirement benefits, leave travel, insurance, hospitalization, overtime policy, and leave policy.
Medical care and health facilities are devised not only to provide protection against sickness but also to ensure the availability of physically fit and stable manpower for economic development. Canteen facilities help to create a sense of solidarity among the workers and a feeling of attachment to their workplace. Transport for employees to enable them to reach their workplace without loss of much time and without fatigue. With the growth of industries, the distance between the workplace and the residence of workers has increased considerably. It is, therefore, necessary to provide proper transport facilities to and from the factory. Such facilities will reduce strain and absenteeism.
Housing has a direct bearing on labour efficiency. Improved housing means improvement in health and output. Health and housing are closely interlinked and have a direct influence on industrial efficiency. Monetary and non-monetary welfare measures play an important role to improve industrial relations among the employees and increasing productivity.
For Citing this article use:
- G.S.MAHESWARI. (n.d.). IMPACT OF EMPLOYEE WELFARE MEASURES ON ORGANISATIONAL PERFORMANCE.
