Is corporate welfare really the key to motivating people? In recent years, many have presented it as a tool capable of boosting productivity, wellbeing and staff retention. Daniela Bandera, CEO of Nomesis and Sociologist, in the article “When welfare ceases to motivate: the hidden risks of workplace welfare” However, he urges us to look beyond the initial enthusiasm. When benefits become a habit, they cease to be of value and can turn into a source of disappointment.
In large companies, employee welfare acts as a sign of care. It is seen as part of a structured and coherent package. In small and medium-sized enterprises, however, benefits risk appearing meagre, unfair or even like disguised forms of control. The result? Demotivation and mistrust.
Research into motivation confirms this dynamic. It is not the number of benefits on offer that matters, but the context in which they are provided. If employee benefits are seen as a mere economic exchange, they lose their impact. If, on the other hand, they are embedded within an organisational culture based on trust, reciprocity and a sense of purpose in work, they become a powerful driver.
Daniela Bandera emphasises that the right question is not ‘how much welfare to provide’, but ‘how to use it to strengthen the bond between people and the organisation’. A welfare scheme that exists solely as a reward ends up being fragile. A welfare scheme based on a relational approach, on the other hand, fosters engagement and genuine motivation.
The article highlights the risks of a poorly managed welfare system and the possible solutions for making it sustainable. The aim is not to scale back the role of benefits, but to rethink them. Only in this way can corporate welfare remain a useful tool, capable of generating well-being rather than frustration.
