Employee Welfare Programme in Nigeria

Employee Welfare Programme in Nigeria

Employee Welfare Programme in Nigeria – Employee welfare has defined variously by various writers.   Armstrong and rumples define it as items in the total package offered of employee over and above salary which increases their wealth or well-being at some cost to the employee.

  1. In the world of Yielder et al, at his wide clarity or services provided by companies for employee’s families.
  2. The deference between the above definitions but Nwachukwu from his own perspective sees it as additional entitlements given to employee by management to supplement their waged.
  3. The definition adopted for this paper however is that of trench and seaward who defined it as something of value apart from agreed regular monetary payment of salaries and given by and employer to an employee.
  4. Employee welfare has been commonly referred to as employee benefit or services.   This distinction here if that benefit are when direct monetary reward to the individual workers eg. Pension; leave pay, and salary advance while services invoke no direct and identifying monetary benefit eg. Staff dubs, recreation facilities are chirstman parties.   Others yet refer to it as fringe benefits.  As mentioned earlier, welfare exists in all cultures even during salve period and in all organization and has existed at all times except that they take different shapes and forms and attract different names.   It is in the recognition of their worker need fulfillment functions that they are variously called welfare benefit, welfare service employee benefit and amenities. But augmenters of employee income, they are being offered to as supplementary benefits, supplementary compensation or pay, and non-wage remuneration – as non-tax sale income and expense they are beginning to be called indirect compensation and non-tax benefits.


          The type benefit being produce for employee are numerous and differ from one organization to another and in varying names an functioning year 20 gives a very comprehensive list of employee benefit and services.   The list is divided in five (5) categories.

1)                For added leisure and income

2)                For personal identification and participation

3)                For employment security.

4)                For health protection

5)                For old age and retirement.

Attempts should be made to discuss some items under each of these categories but become of their numerousity:  a more mention may be made on of them.


Most of employee benefit in this category can be traced to employee-union policy.  Reductions in what are usually described as normal hours of work, premium pay for second and third slugs paid holidays, collations, and rest period have frequently been negotiated.  Many of these benefits also express public policy items differentials, pared holidays, paid vocations rest pauses and coffee break leave for illness, leaves for death or relation etc all these constitute payment for time not worked.   Their value however varies from company to another.


A number of common benefits have created by managers largely on them own initiative employee adjustment to and appreciation, of working condition and relationships.  Each facilitative service process to meet some continuing need.

These and are regarded as evidencing management’s interest in each employee and management willingness to assist him in finding solution to personal problems.   Behind these benefit managers intend to encourage a reciprocal feeling of friendliness and personal beatification with the interest admission of the organization some oftentimes in this category include the following.

  1. Relational programmes
  2. Housing and transformation
  3. Professional service
  4. Company financial assistance
  5. Food service.


It is matter of policy that employee, them visions, the public and many employers to converge in proposing way to maximize such personal and family security as can be provided by stable employment.   The objective according to Yode “is to provide reasonably steely and certain income from work” in other world, this policy proposes to relieve workers, as such as possible, from fear and worry about the employment and the loss of Jobs and income benefits under this category include the following.

1)                Severance pay or dismissal pay

2)                Unemployment insurance

3)                Retagging.


Current public policy tends to protection employment income against the major health of wakes and their department.   Employee are now expected to develop for this purpose several type of benefits.   Include these that provide compensation for industrial accidents and work connected illness, numerous forms of insurance and medulla service .


  1. The growth of employee welfare programmes has and apparently no end as in sight.   The expansion is world wide and so frightening that the programmes have been compared to the mythological animal that immediately grew to head which one was chopped off from now hence it was the labeled era paternalism that first saw a widespread adoption of such benefit as company housing and company stories.   This era did not last long as it feel into disparate, supposedly as a result of the employee’s despair for “industrial adulthood” later it was a new era of new paternalism that developed after the depression than, government legislatures, employee awareness, union’s demand among other continued to escalate the development and growth of these benefits.
  2. Reasons for Growth

Flippe in his book summarized the sources of the rapid growth of such programmes.


i)                   Change employee attitude

ii)                Labour union demands

iii)              Government requirements

iv)              Competition that forces employers to match benefit to attract which keep labour

v)                Periodic wage control which freeze wages but permit the offering of services as a substitute for wage increase.

vi)              High company income tax, since some of the employed benefits are tax-deductible expanse items.

C.      The Cost of Employee Welfare:

In many companies today, a substantial proportion of the total labour cost concerns employee welfare, in addition to basic wages or salaries. These benefits in the employee view represent an extra income, additional security or more desirable working condition that require the addition effort.   Even though the return from them may not be reality ascertained by the wages needs and want that are not satisfied by wages and thus have considerable value in promoting employee morale. However, the cost of employee welfare especially in the area of housing, transportation and medical health care, is increasing end unions are asking for more and more benefits.   This is what was regarded in the past as a small proportion of the labour cost but has now become enormous that employers are now putting its value in question.

However, the fact that cost of employee welfare programme had grown tremendously over the year in Nigeria is no an exasperation.   According to the Udoji commission, the provision of fringe benefit is increasing being accepted as part of the total compensation package in both the private and public sectors.  A conservative estimate put the monetary last of benefits at one-quarter of total payroll cost.  Nwachukwu (1981) estimates that major total pay package on executive fringe benefits.   Ejifor (1977) has earlier estimate the cost of welfare programmes for top civil servants at about three times their normally salary.



          As employee welfare programme, like any other phase of the personnel programme, should be carefully planned and pareses established for use as guidelines in the management of the programme.  It has been suggested that management gave greater attention to deterring the optimum combination of fringe benefit for its company that will maximize employee satisfaction and assume efficient introduction and thus service as a standard against which assess proposed additions and/or changes to the package.  Employee welfare programme may have any or all of the following general purpose given by Yoder et al.


 —————-This article is not complete———–This article is not complete

   This article was extracted from a Project Research Work Topic


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 Employee Welfare Programme in Nigeria

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