2.1 NATURE AND SCOPE OF EMPLOYEE WELFARE.
Employee welfare has been defined by various writers in
different ways.
Arm strong Murlis (1980:14) defined it as items in the total
package offered to employee over and above salary which
increases their wealth or well being at some cost to the
employer.
Naylon and Ton-ington (1974) view it as a voluntary provision
on the part of the employer. The adopted definition is that of
French and Saward (1977) who defined it as set of value apart
from agreed regular monetary payments of salaries and wages
given by an employer to an employee. Employee welfare has
been commonly referred to as employees benefits or services.
Benefits are when direct monetary reward accrued to the
individual worker e.g pension, leave pay, and salary advance.
While services involve no direct and identifiable monetary
benefits e.g staff clubs, recreation facilities, arrangement of
reception hall and Christmas parties. Others refers to it as
giving benefits in recognition of their workers need fulfillment
function that they are variously called welfare benefits, welfare
services, employees income they are being referred to as
supplementary benefits, supplementary compensation or pay
and expenses, they are being called indirect compensation and
non tax benefits.
2.2 DEVELOPMENT OF EMPLOYEE WELFARE GROWTHMAGNITUDE AND TREND.
The growth of employee welfare activities on production
level has been very great especially since world war11 and
clearly seen as no end in sight. The expansion is worldwide and
been compared to the mythological animal that immediately
grew two heads and one was chopped off (Edwin, Flippo
1971:38) from nowhere according to the same author, it was
called “era of paternalism that first saw a wide spread adoption
of such benefits as company housing and company stores. This
era did not last long as a result of the employee’s desire from
industrial adult hood” later it was a new era of new paternalism
that develop after the depression of the 1930’s and the world
war11,
since
then,
government
legislatures
employees
awareness, union demands, among others have continued to
escalate the development and growth of these benefits.
2.2.1 REASONS FOR GROWTH.
The sources of rapid growth of employee welfare program
are summarized below by flippo (1971).
1. Labour union demands.
2. Change employee attitude.
3. Government requirement
4. Competition that forces other employers to match benefits
to attract and keep labour.
5. Periods of wages control which freezes wages but permits
the offering of services as a substitute for wage increase.
6. High company income tax; due to some of the employee,
managers and employers do not play dormant role in
administering all benefits and services; therefore, they
have to comply with the prescribed public regulations. In
other
words,
public
policy
plays
a
leading
role
in
explaining several important types of fring provisions.
Public policy has long emphasized the advancement of
economic security and qualitative benefits such as public health
and accident. Employee unions on the other hand also sought
per sick leave pay, health and welfare activities, increase
payment to workers e.t.c.
The union pursued these benefits with vigor for the best
interest of their members.
This is in recognition of the fact that many benefits offer
possibilities of implementing their policies to improve employee
morale to encourage wide participation and understanding in
other
to
reduce
absenteeism
and
assist
employees
in
identifying their personal goals and interest with those of the
organization. Although managers and employers at times are
against it and they regard fringe and benefits as
lost of
production which is to be charged with other forms of
remuneration.
2.3 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 view represents on extra income, additional
security or more desirable working conditions that require
additional effort. Even though the reqirement from them may
not be readily ascertained by the employer, such benefits
satisfies employees need that are not satisfied by wages also
plays a considerable role in promoting employee morale.
However, the cost of employee welfare activity is increasing
especially. In the areas of transportation and medical care and
unions are even asking for more benefits. In the past, it was
seen as a small proportion of the labour cost but now it has
become enormous that employers are now putting it’s value in
question.
However, the fact that the cost of employees welfare
programs has grown tremendously, over the years in Nigeria,
is not an exaggeration.
According to public service review commission (1978:183), the
provision of fringe benefits is increasingly being accepted as
part of the total compensation package in both the private and
public sectors.
According to cost (1964:193), a considerable estimate put the
monetary cost of benefits at one quarter of total payment cost.
Nwachukwu (1981:15) estimates that major co-operation
spend from 20 to 35% of their total pay package on executive
fringe benefits.
Ejiofor (1977:66) in his review estimated the cost of welfare
activities for top civil servants at about three times their
normal salary. There is no doubt that these fringe benefits take
a significant dunk of the expense of organization, as they are
almost encompassing the span of a workers life from date of
employment to life after death. Ejiofor (1986:102) best
expresses this situation when he tastes that
Employers are now expected to house their workers, bring
them to work, provide recreational facilities for them, pay them
if they have to be sacked, provide transport for them on
transfer and compensate them for the inconvenience maintain
their service and depending on the status announce; their
death to the world “with heavy heart” bury them decently,
keep their memories evergreen in the world, then annual
memorials and even pray for the repose of their soul.
2.4 PURPOSE OF EMPLOYEE WELFARE ACTIVITIES.
An employee welfare activities like any other phase of the
personnel program should carefully planned and purposes
established for us as guidelines in the management of the
program. It has being suggested that management pay greater
attention to determining the optimum combination of fringe
benefits
for
its
company
that
will
maximize
employee
satisfaction and assure efficient production and thus serve as a
standard against which access proposed additional and or
change to the package of (Chruden and Sherman (1968:656).
According to Yoder et al (1958:214-215) employee
welfare activities may have any or all of the following general
purpose viz.
FOR THE COMPANY
1. Increase output.
2. Reduce employee moral
3. Increase employee morale
4. Reduce grievances
5. Improve public and community relations
6. Reduce influence of present or potential
7. Increase employee participation in company affairs.
8. Increase employee loyalty towards the company.
9. Facilitates recruitment and retention of employees.
10.
Increase welfare of employees in connect with line
personnel and social needs.
11.
For The Employee
1. Provides means of becoming better acquainted with other
employees.
2. Provide additional opportunities to attain status.
3. Provide assistance in solving personal problems.
4. Provide extra compensation.
5. Contribute to personal advancement and well being of
individual employers.
6. Reduce feeling of insecurity.
2.4.1 CATEGORIES OF EMPLOYEE WELFARE ERVICES.
According to Flippo (1971:292) employee welfare services
exist in many forms and has seen categorized by different
authors.
Employee welfare services is grouped into the following
categorize.
a. Employee service.
b. Hazard protection
c. Legally required payment.
Also, Yoder et al (1958:213) categorized welfare service into.
1. Extra payment for time not worked.
2. Non production awards and bonuses
3. Payment for employee service.
In his own book, Yoder (1962) emphasized on more broad
categorized.
1. Health and welfare
2. Added leisure and income
3. Moral and personal identification
4. Old age and retirement
2.4.2 BENEFITS FOR SAFETY HEALTH AND WELFARE
It is often said that health is wealth and a healthy body
makes a healthy mind. So in recognition of this, employers
have developed more interest in the provision of health and
welfare programs for their employees, some of these services
are:
2.4.3 A MORAL FACILITIES.
Provision
for
physical
security
includes
program
of
industrial medicine. Industrial medicine is intended medical
practice not to compete with it. The program of industrial
medicine includes:
Regular physical examination, health education, prompt care of
the injured, sanitary inspection, elimination of hazard. Studies
of fatigue, provision of visiting hours, services to employee
away from work because of illness and service of the company
doctors or hospital. facilities in the case of emergency
operation due to cause, free service in connection with
preventive or care of visual or dental (Knwles 1955:418).
Continuing, Knowles states that the difficulty of obtaining
adequate medicine at reasonable rate through regular channels
has however led to the expansion of industrial medicine to give
the employees more free medical treatment and medicine .
Although some firms have even gone far as to extend free
medical facilities to the families of employees.
2.4.4.
HOSPITALIZATION
AND
GROUP
INSURANCE
PLANS:
Insurance is a condition where by the insurer agrees to
indemnify the insured against any loss which may result from
mis-fortune without regarding if the insured is duly liable for
the cost. Many firms entered into agreements with insurance
firms under which hospitalization and life insurance plans are
made available to employee usually at reduced rate. The plan
provides a measure of security for employees by assuring
them that in event of hospitalization, the major part of the lost
will be borne by the plan and that in the event of death, funds
will be available to the dependents.
The returns to company for this specific economic service
comes from relieving the employee of worry about security of
his or her dependents, because relief from worry should enable
a person to devote greater attention to the job and the
company.
2.5 BENEFITS FOR ADDED LEISURE AND INCOME
Majority
of
the
employee
welfare
provisions
are
negotiated by management and union also the law places
obligation on the employer to provide such benefits. That
benefits that are negotiated are reductions in normal hour of
work. Premium for second and third shifts, paid holidays and
rest periods.
Employee are entitled to a holiday with pay after 12
months
of
continuous
service.
According
to
Knowles
(1955:415) majority of office workers receive a two weeks
work pay vacation annually in different organization.
Yoder (1962:609) assents that most common current pattern
grants 3 weeks annually after 3 to10years, 4 weeks, after 20
years service, Armstrong (1974:298) is of the opinion that
most staff now receive the role for the staff paid over #2000 a
year and a growing proportion of senior executive receive five
weeks. This seems to be the upper limit at present. In his own
contribution, Zafer 91971:298) emphasized that flexibility in
job assignment, employee acceptance of technological charges,
a monthly turnover at 1/6 the competitive level and compound
annual increase in productivity of 7.13% are some of the under
lining benefits.
Maternity Leave
This is usually granted to women for a period of six weeks
following their confinements where as for casual leave, few
days are granted to employee on compassionate grounds. In
some cases leaves of absence could be granted to employees
on military calls and civil duties.
Over Time and Holiday Pay
Once the normal hours of work have been agreed upon or
fixed hours worked in excess y a worker is called over time and
is paid for usually union and management bargain on such
times regarding premium for weekend work such as double
time for Sundays.
Call-In-Call Out and Call Back Days
A call in occurs when the employee reports for work. for
some there is not work to be done while a “call-out and call
back” occurs when an employee is asked to report to work
outside his regular hours in the former, it is anytime shortly
after shift of work, for instance, Doctors are usually placed on
call duties to take of patience who maybe in critical condition
so far in emergency situation companies may call out on
employees outside his regular hours.
The customary practice is paying him at a high rate with a
minimum of some hour payments..
Premium for Night And Shift
Working in the nights and shifts are not usually as
attractive to employees as the normal day’s work on which
basic salary is paid. So employees are less likely to agree to
carry on the job without extra remuneration paid as an
incentive unless it is mandatory that employees also do not
consent to such an arrangement should resign.
Leave of absence.
It is becoming increasingly normal in most enterprise to
grant leave of absence to employee when certain situation that
warrant such leave occur. Most of the management union
agreement make provision for laves although no specific rules
governing such leaves are set in details.
Infrastructural Benefits
It is believed that infrastructural benefits will encourage
reciprocal feeling or friendliness and personal identification with
all that the organization stands for.
Housing Facilities
It has been observed
employee
lives
have
a
that
the environment where
considerable
effort
upon
their
performance at work. (Flippo 1971:301-302) asserted that
managers are concerned with assisting the employees to locate
in a suitable home especially area that require assistance in
finding suitable rental. the employee will buckle down to work
with greater concentration much faster when he or she is
assured of proper housing supporting the above Claim,
Armstrong 91980:260) stated that housing assistance and
allowance of various kinds are becoming one of the more
frequently used and appreciated fringe benefits, long term
credit has been made available to employees at a favorable
rate.
2.6 RECREATIONAL FACILITIES
According to Yoder (1958:216) many companies are
becoming
recreational
increasingly
facilities,
interested
such
facilities
in
the
are
provision
Golf,
foot
of
ball,
swimming, hockey, basket ball, tennis and occasional indoor
games such as cheese, draft, ludo etc. such recreational
facilities are of greater value on employees recruitment, other
benefits that can be derived from such provision include
improved morals, development of pride in the company, that is
attitude towards the company, reduction in absenteeism and
development of leadership.
Library and Reading Service
Many companies have in their fringe benefits program the
provision of library and reading services. The libraries are
usually
under
the
direction
of
a
trained
librarian
and
administered according to standard library procedure. They are
usually located in a central place where they can conveniently
be reached by of all employees. Record and report are
supposed to be well arranged so that the employee would be
able to locate books easily. Also about 10% to 30% of the total
employee populations are expected to make use of the service.
Yoder (1958:25-23). Management should be consulted with
respect to technical books and periodicals in all emphasis
should be laid on rendering efficiently and meaningful service
to the employees.
Canteen Service
This is another important fringe benefits provided for
workers in recent time. most companies have been forced to
provide such facilities because they are located away from the
central community service. The most important result in the
provision of this service is improved metrication.
According to Yoder, too often industrial employees settle
for hot dog and soft drinks, a self service restaurant is not
available. And it has been shown that improper eating
especially during heavy job will result to greater fatigue and
reduce production on productivity level during late afternoons.
Some firms will practically give away certain goods considered
to be highly nutritious.
In some companies, free food is served top workers or
workers are given coupons with the company pays. The return
to lower absenteeism lessened fatigue, increased employee
morale and efficiency and decreased number of accidents.
Club Membership:
these are sort recreational facilities
provided in some companies. These clubs sell beverages and
items to the employees at reduced prices because they take
advantages
of
large
side
purchase
to
buy
from
the
manufacturer at reduced prices to the club at their leisure time
to relax. They also take part in different types of games, like
share drinks and some times organization parties.
Membership of such clubs is open to all employee and annual
dues are usually collected. The club is runned by volunteer
committee elected by the members
Benefits for Old Age and Retirement
Due to the long dedicated service rendered by an
employee to the organization, the employer recognizes the
importance
and
establishes
a
company’s
old
age
and
retirement plan to compensate their employees when out of
active service.
Pension and Retirement
Many companies establish retirement and pension plan for
employees, who are unable to save enough to provide for there
support when they retire. Management recognizes the service
obligation of the employee who served the organization for
many years. Ordinarily develops the pension plan through a
bank or an assurance company. In some plans both the
employed and the company contributes.
According to Knowles (1955:419) most pension plans in
effect today require the retirement of the employee at 65 years
usually at least twenty years of service or at most 35 years of
services. The amount of retirement pension is often about 59%
of the average annual salary (up to a certain point) received by
an individual during his last 5 years of employment.
Nevertheless,
this benefits may elude
an employee
although his own contribution must be given back to him with
interest, but the company’s contribution are given to him only
if the employee has full tights to the company’s contributions.
In some plans while in others, investing is allowed after a
certain number of years of service. In some plans, graduates
plans exist where the employee is entitled to percentage of the
company’s contribution each year.
2.7
DISADVANTAGES
PROVISION
OF
EMPLOYEE
WELFARE
High cost of maintenance:
With the soaring cost of welfare services in recent times
as shown by various empirical studies which will be discussed
later, companies find it difficult to maintain their existing fringe
benefits not to talk of providing new ones. Worst still only few
of these benefits can successfully be used by majority of the
employee while others are enjoy the privilege few. Such service
as packing facilities, library and reading room facilities are good
example; this makes the cost of their maintenance very high
and sometimes not within the reach of many companies.
DHL world wide express delivery service.
A historical background, 3 men Adrain Dalsely, Larry
Hilblon and Robert Lynn, founded DHL in 1969.the name DHL
represents the initials of three (3) founders
“D” for Dalsey
“H” for Hilblon
“L” for Lynn.
The foundation of DHL was in response to delivery
problems in the ocean cargo industry by ensuring the delivery
of paper work before a consignment arrive in clock, DHL
significantly reduced turn around and total transit times.
(Higher 1996:12) together the founders expanded this new
service into an international new work that has grown into a
multi-billion dollar industry service more than 220 countries.
DHL World Wide express is composed of DHL Air ways Inc
which serves all location in the use of its territories and DHL
international Limited and its agents and affiliated companies
which serve all location outside the United State and its
territories. DHL has since become the largest and most
experienced International air express network linking more
than 635,000 destinations (DHL Corporate report 1998).
Operations In DHL
DHL has a unique courier company service more than
80,000
locations
World
Wide.
DHL
boost
over
25,000
professionals at its service viz: Courier, pilot, customer,
brokers, operations, personnel, sales and customer service
representative (DHL express 1996)
Method of Delivery
The delivery method of DHL remains the most advance in
the industry, DHL use its own fleet of 156 air craft and
supplements these with the use of more than 170 commercial
airlines unique monitoring technique gives DHL total control
over the progress of parcel or documents from the time it is
received until the moment is delivered. On the local delivery
system, DHL ensures door to door delivery via their courier
agents or dispatch rides, the consignment on changing hand
from DHL agent to the consignee would require a sign over
from the recipient
after due identification. this signing over
indicates that the consignment has reached its destination and
marks the end of the contract between the customer and DHL.
Role of DHL in communication or industry, the network is over
together by a state of the art technology and people with a firm
objectives to deliver documents and packages in the fastest
most efficient way possible, whilst providing personal services
that continues to meet international shipping needs better and
more effectively than any other express company today.
DHL Enugu State
DHL Enugu started operations in 1984, DHL Enugu is a
divisional office of DHL International Nigeria Limited under the
eastern one with its Headquarters in Port Harcourt. The branch
office includes DHL Offices In Asaba, Nnewi, Onitsha, Nsukka
and other DHL agency offices scattered all over the main cities
of Enugu state and neighboring states. DH: offices in Enugu is
department allied in five (5) Viz; sales/marketing department,
operations department, customer services department,
Account
department
and
administration
department
each
department has its own department head or manager. For the
purpose pf this research study, the organizational chart used is
adopted from that of the Port Harcout headquarters. This is
because Enugu being a smaller station would not completely
reflect the organizational structures, through the operation are
basically the same.
Benefits Offered In DHL Enugu State
In order to maintain the loyalty of the workers and to
motivate workers for higher performance and increase their
productivity level, DHL Enugu state embarked on an intensive
employee welfare scheme.
Below are the list of benefits offered in DHL.
1. Worker’s compensation or share dividend.
2. Housing loan
3. Medical allowance
4. Education assistance
5. Overtime / inconvenience allowance
6. Out of station allowance
7. Retirement benefits
8. Annual leave
9. Uniform allowance
10.
Christmas and new year bonus
11.
Shift allowance.