How does employee welfare relate to productivity?

Employee welfare directly relates to productivity as satisfied, healthy, and motivated employees tend to be more productive.

Employee welfare refers to the efforts made by an employer to ensure the physical and mental well-being of their employees. This can include providing safe working conditions, health benefits, job security, fair wages, and opportunities for growth and development. When employees feel valued and cared for, they are more likely to be motivated and committed to their work, leading to increased productivity.

The relationship between employee welfare and productivity can be understood through several theories and concepts. For instance, Maslow's Hierarchy of Needs suggests that individuals are motivated to fulfil their basic needs before they can focus on higher-level needs. In a work context, if an employee's basic needs such as safety and security are not met, they are unlikely to be able to focus on their work effectively, impacting productivity.

Similarly, Herzberg's Two-Factor Theory proposes that certain factors in the workplace, known as 'hygiene factors', such as salary, job security, and working conditions, need to be satisfactory to prevent employee dissatisfaction. If these factors are not met, employees may become demotivated and less productive. On the other hand, factors that lead to job satisfaction, such as recognition and opportunities for growth, can motivate employees and increase productivity.

Moreover, research has shown a positive correlation between employee welfare and productivity. For example, a study by the Corporate Executive Board found that employees who are satisfied with their work-life balance work 21% harder than those who are not. Similarly, a study by the University of Warwick found that happy employees are 12% more productive.

In conclusion, employee welfare is not just a moral obligation for employers, but also a strategic tool to enhance productivity. By investing in employee welfare, businesses can foster a motivated and committed workforce, leading to improved performance and productivity.