Labour Welfare Practices as Determinants of Employee Productivity in Small and Medium Enterprises of Uttar Pradesh

Abstract

Labour welfare practices have emerged as a critical strategic factor influencing employee productivity, particularly within Small and Medium Enterprises (SMEs), which form the backbone of industrial employment in Uttar Pradesh. This study investigates the role of labour welfare measures as key determinants of employee productivity in SMEs across selected industrial sectors of the state. Adopting a descriptive-cum-analytical research design, the study draws upon both primary and secondary data sources. Primary data were collected through a structured questionnaire administered to industrial workers and managerial or HR personnel, while secondary data were sourced from government publications, labour laws, and relevant scholarly literature. The analysis focuses on major dimensions of labour welfare, including statutory and non-statutory welfare provisions, employee awareness of welfare schemes, perceived equity in implementation, and overall satisfaction with welfare facilities. Statistical tools such as descriptive analysis, Chi-square tests, ANOVA, and correlation analysis were employed to examine the relationship between labour welfare practices and productivity-related outcomes. The findings reveal a significant and positive association between effective labour welfare practices and employee motivation, job satisfaction, and work efficiency, leading to enhanced productivity in SMEs. Conversely, inadequate welfare provisions and limited awareness contribute to employee dissatisfaction and lower performance levels. The study concludes that labour welfare should be recognized not merely as a statutory requirement but as a strategic investment essential for improving productivity and ensuring sustainable growth of SMEs in Uttar Pradesh.