Employee Morale and Welfare (Cambridge (CIE) A Level Business): Revision Note

HRM, employee morale and welfare

Morale

• Morale refers to the overall attitude and satisfaction employees feel towards their workplace

  • High morale typically leads to increased productivity, creativity and loyalty

• The human resource management (HRM) function is often tasked with ensuring good employee morale and welfare

Factors that boost employee morale

• Fair pay and financial incentives

  • Offering fair salaries and extra financial rewards, such as bonuses or profit sharing, motivates employees, making them feel valued and fairly treated

• Opportunities for career advancement and personal growth

  • Employees become motivated when they see clear opportunities to progress within a business, developing new skills and taking on greater responsibilities

• Recognition of good performance and achievements

  • Regularly acknowledging employees' achievements boosts self-esteem and motivation and encourages continued high performance

• Positive relationships among staff and management

  • Good relationships within the workplace create trust and mutual respect, improving communication and cooperation across the business

Welfare

• Employee welfare relates to measures businesses take to ensure the health, safety and wellbeing of their staff

• Businesses that look after employees’ welfare often experience higher productivity, lower staff turnover and fewer days lost due to illness

Examples of employee welfare measures

Work-life balance

• Work-life balance refers to employees’ ability to balance work responsibilities with their personal life

• Effective HRM policies ensure employees have manageable workloads and sufficient personal time, improving morale, motivation and staff retention

Ways businesses can promote a good work-life balance

The impact of diversity and equality in the workplace

• Diversity means recognising, valuing, and respecting differences among people in the workplace

  • This includes characteristics such as gender, race, ethnicity, religion, age, disability and sexual orientation

• Equality means treating all employees fairly and ensuring everyone has the same opportunities, regardless of personal characteristics, and creating workplaces free from discrimination

The importance of diversity and equality to employees

• Promotes fairness and reduces discrimination

  • Emphasising equality ensures that everyone has the same opportunities and reduces unfair treatment or bias based on personal characteristics

• Enhances job satisfaction, morale and motivation

  • When employees see diversity and equality valued in their workplace, they become happier, more engaged and enthusiastic about their work

• Provides equal opportunities for career development

  • Equality in the workplace ensures all employees can progress their careers based on skills and merit, rather than background or identity

The impact of diversity and equality on business