After reading this article you will learn about:- 1. Definition and Concept of Personnel (Labour) Welfare 2. Importance (and Objectives) of Personnel (Labour) Welfare 3. Methods or Measures.

Definition and Concept of Personnel (Labour) Welfare:

Employee services are provided under a number of titles in industry. Sometimes, it is referred as Benefit Programmes, Personnel (employee, labour) welfare, or as Hidden payroll. Perhaps employee services are generally described as a part of Fringe Benefits.

Fringe benefits include those elements of compensation other than wages which are significant when initially considering employment and in the ongoing evaluation of one’s welfare on the job.

Fringe benefits may be of:


(i) Monetary nature, e.g., Retirement benefits, Insurance benefits, and Investment plans, etc.

(ii) Non-monetary natures, e.g., Position title, Good office, Automobile, and Good parking space etc.

Importance (and Objectives) of Personnel (Labour) Welfare:

Personnel welfare or employee service and benefit programmes are important because they:

(1) Make the plant personnel a healthier, sounder-thinking and more forward-looking group.


(2) Make the employee a group of citizens better able to carry on the productive processes.

(3) Contribute to the maintenance of employee morale and loyalty.

(4) Maintain an employee’s favourable attitude towards his work and work environment.

(5) Serve to attract and keep a work force in competition with other organizations.


(6) Serve to maintain some degree of peace with the organized labour union.

(7) Fulfill social, recreational, and cultural needs of the employees and at the same time make their life easier.

(8) Reduce labour turn-over and absenteeism.

(9) Promote good public relations.


(10) Encourage employees and promote goodwill and cordial relations between employers and employees, which ultimately result in more production, better product quality and increased profits,

Methods or Measures for Personnel (Labour) Welfare:

They may be categorised into three classes, namely:

1. Economic:

(a) Insurance (including group insurance).


(b) Retirement and pension plans.

(c) Health and accident services.

(d) Credit unions’.

(e) Paid holidays.


(f) Profit sharing.

2. Recreational:

(a) Sports.

(b) Social get-togethers.


(c) Special interest groups such as dramatics, athletic programmes, flying and particular hobbies.

3. Facilitative:

(a) Housing.

(b) Transport.

(c) Educational facilities and library services.

(d) Medical services (including first-aid, hospitalization, sick leave, etc.).


(e) Canteens, cafeterias and lunch wagons (Eating facilities).

(f) Company (cheap) stores.

(g) Discounts on purchases of company products.

(h) Rest-rooms and locker-rooms.

(i) Legal and financial counselling.

The above listed facilities are self-explanatory.