Research Article | | Peer-Reviewed

Impact of Employee Welfare Facilities on the Job Satisfaction of Automobile Industry in India

Received: 12 April 2026     Accepted: 24 April 2026     Published: 26 June 2026
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Abstract

The study with a descriptive and analytical approach, foundations on existing literature on job satisfaction and employee welfare, including previous theories proposed by Armstrong, Herzberg, examines the impact of Employee Welfare facilities on Job satisfaction of Automobile Industry in India. The study find the key welfare facilities such as canteen facilities, accommodation, loan facilities, healthcare, transport, and overall working conditions. The research develops hypotheses framework to test the relationship between concern welfare facilities and job satisfaction. The study was well examined through a structured questionnaire and based on secondary sources. The study findings suggest that employee welfare facilities positively influence employees’ job satisfaction by improving their morale, health, and overall HYPERLINK "http://well-being.on" \h well-being. On the other hand, inadequate healthcare, low pay, poor benefits, high work pressure, and rising living costs negatively affect satisfaction of the employee and also increase turnover intentions. The study highlights that welfare facilities such as canteen services, accommodation, and financial support mechanisms significantly contribute to enhancing employee commitment and productivity. The study aims to examine the impact of welfare facilities on the job satisfaction of supporting staff in the automobile sector in India. Supporting staff form a substantial portion of the workforce and are directly involved in the assembly and production processes, making their satisfaction essential for organizational performance.

Published in American Journal of Management Science and Engineering (Volume 11, Issue 3)
DOI 10.11648/j.ajmse.20261103.11
Page(s) 73-77
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Job Satisfaction, Employee Welfare, Automobile Sector, Supporting Staff, Human Resource Management

1. Introduction
Human resources is the primary resource of any organisation. Human resource management has become the most crucial function in any field in an organisation. Satisfaction is a significant concept when evaluating an individual's job performance. Employee Welfare Management is one of the keys that binds the employee with an organisation, directly affecting job satisfaction. Providing welfare facilities will facilitate retaining and maintaining a competent workforce and increase an employee's job satisfaction. Human resources play a vital role in any industry . The workforce's health depends on the company's welfare facilities . In the automobile sector, among the employees, the supporting staff are one of the strongest pillars . In any company, supporting staff comprise the most significant portion of the workforce, which requires adequate welfare facilities, leading to job satisfaction. Supporting staff attend to assemble the parts to deliver the automobile in India. Job satisfaction of employees with supporting staff is an essential factor to be considered. The employees' job satisfaction level could impact their performance, morale, discipline, commitment, quality of service, etc . The scarcity of health care also scarves job satisfaction among employees. The shortage of professionals in automobile sector also creates hinderance to the job satisfaction. Cost of living, Poor pay, poor benefits, work pressure and stress, extra responsibilities could be some of the reason effect on desire to leave . The main objective of this study is to investigate the impact of existing welfare facilities in automobile sector on job satisfaction of the employees of automobile sector.
2. Literature Review
2.1. Job Satisfaction
It is a positive emotional response that employees experience when doing their job . There are so many theories developed to exploration of job satisfaction such as content theory, process theory and the situational theory. This factor increases the efficiency, loyalty, mental health, profits, sense of ownership and promotion of inter and intra relations .
2.2. Employee Welfare Facilities
Employee welfare demonstrated as services, facilities, and amenities in which enabling of vicinity of understandings to perform their outstanding performance at workplace . The functional theory tells that welfare is a technique to secure, preserve, and develop the efficiency and productivity of employees. Employees happiness depends on the hygiene factors described by the Herzberg theory. Arguments given by many scholars that welfare facilities measure as vital or increasing the efficiency of employee through job satisfaction.
Most of the scholars considered the five components of welfare in their different studies includes canteen, hospital, transport, first aid, insurance and good working environment.
2.3. Hypothesis Development
H1: There is a significant positive relationship between canteen facilities and job satisfaction among employees of automobile sector.
H2: There is a significant positive relationship between Accommodation and job satisfaction among employees of automobile sector.
H3: There is a significant positive relationship between Loan Facilities and job satisfaction among employees of automobile sector.
3. Methodology
A quantitative research design used to study the impact of employee welfare facilities on job satisfaction among the employees of automobile sector. Data had been collected using structured questionnaire with five-point Likert scale through the survey and interview method. This study followed the positive approach to develop the hypothesis and collection of data to solve the question regarding impact of existing welfare facilities on job satisfaction of the employees of automobile sector. Descriptive research needs to deduce the theories from the facts therefore survey is conducted through clusters which is also known as cluster sampling technique to collect the data. The population of this research contained the employees of automobile sector mainly middle and lower-level employees who are presently serving in automobile sector. The size of population is infinite so according to gorgon’s formula, a portion of the population was used as the sample to collect the data for the study. the sample inculcates 210 middle and lower-level employees with margin error 0.1. Primary data collected through the self-administered questionnaire and secondary data were collected through reports, documents, research articles and internet sources etc. data were analysed through the statistical software like SPSS.
4. Data Analysis and Discussion
As per the data collected through the questionnaires, there is a high margin in gender quotient between male and female category which implies that most of the respondents comes under male category (80%). Majority of the respondents had more than 5 years of service in automobile sector (64%) and having the diploma as the highest qualification serving in automobile sector. The response rate is 70% which means that the most of the respondents have positive approach towards the study.
The KMO test represents sample adequacy shows the result 0.9, significant at 0.05 which means data was suitable for factor analysis. Cronbach alpha is 0.956 with a significance at 0.00 which shows the internal consistency was excellent. Reliability analysis proved that the research instrument was reliable and will give credible results.
Descriptive analysis results declared that the data were normally distributed as all the dimensions has the mean values between 2 to 3 and the standard deviation of all dimensions were also less than 1. Therefore, it can be said that central tendency of the data shows the reliable results as the data were normally distributes. As per the results, respondents highlighted that they need accommodation and canteen facilities more which drives job satisfaction among employees.
Correlation analysis represents selected dimensions of welfare facilities and the job satisfaction had statistically significant amidst multiple regression was used to test the hypothesis. Regression analysis found that the standard residual limits within the boundaries, normally distributed data. Linear regression was proved that the job satisfaction could be predicted from level of welfare facilities with good level of predictions.
Table 1. Anova Analysis.

Anova

Model

Sum of squares

Df

Mean Square

F

Sig.

1

Regression

36.02

3

13.42

33.26

0.00

Residual

36.55

98

.325

Total

72.78

99

Dependent variable: Job satisfaction

Predictors: (Constant), Canteen facilities, Accommodation, Loan Facilities.

Source: The Author
Table 2. Model Analysis.

Model Summary

Change Statistics

Model

R

R Square

Std. error

R square Change

F Change

Df1

Df2

Sig F Change

Durbin- Watson

1

0.80

0.60

0.68

0.58

33.25

3

97

0.00

2.55

Predictors: (Constant), Canteen Facilities, Accommodation Loan Facilities

Dependent variable: Job Satisfaction

Source: The Author
Table 3. Coefficient Analysis.

Coefficients

Model

Unstandardized coefficients

Standardized Coefficient

T

Sig.

B

Std. error

Beta

1

(Constant)

0.88

.261

3.333

0.00

Canteen

0.56

.189

.52

2.987

0.00

Accommodation

0.22

.166

.54

2.94

0.00

Loan

.055

.159

.17

1.255

0.00

Dependent Variable: Job Satisfaction.

Source: The Author
5. Conclusion
Job satisfaction among the employees of automobile sector have become a huge difficult task to predict therefore, a human resource tries to provide welfare facilities. Voluntary resignation has become a huge problem recent day. It gives an indication that employees have an issue in relation to job satisfaction. This research primary aimed at investigation of relationship between canteen facilities, Accommodation, Loan Facilities with job satisfaction among employees of automobile sector. The feedback of respondents was directed that they are marginally satisfied with canteen facilities and not with accommodation and loan facilities.
The results of the study indicate a significant positive relationship between employee welfare facilities and job satisfaction among employees in the automobile sector. All three hypotheses were statistically supported, as reflected by their significance values (Sig. = 0.00). Specifically, canteen facilities (B = 0.55) and accommodation facilities (B = 0.56) show a strong positive impact on job satisfaction, suggesting that these provisions play a crucial role in enhancing employees’ comfort and overall work experience. Loan facilities (B = 0.25), while also positively related and statistically significant, exhibit a comparatively moderate effect on job satisfaction. Overall, the findings highlight that welfare measures, particularly basic and immediate support facilities such as food and housing, are key determinants of employee satisfaction in the automobile sector, thereby reinforcing the importance of comprehensive welfare policies for improving workforce morale and productivity.
Table 4. Hypothesis Results.

Sr. No.

Hypothesis

B

Sig.

Remarks

1

H1: There is a significant positive relationship between canteen facilities and job satisfaction among employees of automobile sector.

0.55

0.00

Accepted

2

H2: There is a significant positive relationship between Accommodation and job satisfaction among employees of automobile sector.

0.56

0.00

Accepted

3

H3: There is a significant positive relationship between Loan Facilities and job satisfaction among employees of automobile sector.

0.25

0.00

Accepted

The results suggest that the job satisfaction of employees can be enhanced by improving the welfare facilities, significantly the canteen facilities.
6. Suggestions
On the ground of study, followings recommendations are made which is necessary to be carried out further study. The welfare facilities were inadequate for the employees of automobile sector, it is recommended that the welfare facilities which match with real needs and expectations of employees should be provided. Canteen facilities are important source of satisfaction therefore it should be improved in terms of good quality food.
Further studies are recommended to determine the impact of welfare facilities for job satisfaction of all categories of employees in automobile sector and also top-level employees.
Author Contributions
Monika Sehgal: Conceptualization, Data curation, Methodology, Resources
Conflicts of Interest
The author declares no conflict of interest.
References
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[2] Arnett, D. B. (2005). Using job satisfaction and pride an internal marketing tool. Cornell Hotel and Restaurant Administration Quarterly, 43(2), 171-193.
[3] Dunnette, M., Campbell, J., & Hakel, M. (1967). Factors contributing to job satisfaction and job dissatisfaction in six occupational groups. Organizational Behavior and Human Performance, 2(2), 143-174.
[4] George, J., & Jones, G. (2008). Understanding and Managing Organizational behavior (Fifth Edition ed.)
[5] Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational behavior and human performance, 16(2), 250-279.
[6] Hilton, B. L. (1968). An empirical investigation of the Herzberg methodology and two-factor theory. Organizational Behaviour and Human Performance, 3(3), 286-309.
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[9] Kim, W. G., Leong, J. K., & Lee, Y.-k. (2005). Effect of service orientation nonsatisfaction, organizational commitment, and intention of leaving in a casual dining chain restaurant. International Journal of Hospitality Management, 171-193.
[10] Locke, E. A. (1976). The Nature and Causes of Job Satisfaction. In Handbook of Industrialand Organizational Psychology (pp. 1297-1343).
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[12] Qader, A. N. (2021, July). The Effect of Non-Monetary Incentives & Work Environment on Employee’s Job Satisfaction. Studies of Applied Economics, 39(7).
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  • APA Style

    Sehgal, M. (2026). Impact of Employee Welfare Facilities on the Job Satisfaction of Automobile Industry in India. American Journal of Management Science and Engineering, 11(3), 73-77. https://doi.org/10.11648/j.ajmse.20261103.11

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    ACS Style

    Sehgal, M. Impact of Employee Welfare Facilities on the Job Satisfaction of Automobile Industry in India. Am. J. Manag. Sci. Eng. 2026, 11(3), 73-77. doi: 10.11648/j.ajmse.20261103.11

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    AMA Style

    Sehgal M. Impact of Employee Welfare Facilities on the Job Satisfaction of Automobile Industry in India. Am J Manag Sci Eng. 2026;11(3):73-77. doi: 10.11648/j.ajmse.20261103.11

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  • @article{10.11648/j.ajmse.20261103.11,
      author = {Monika Sehgal},
      title = {Impact of Employee Welfare Facilities on the Job Satisfaction of Automobile Industry in India},
      journal = {American Journal of Management Science and Engineering},
      volume = {11},
      number = {3},
      pages = {73-77},
      doi = {10.11648/j.ajmse.20261103.11},
      url = {https://doi.org/10.11648/j.ajmse.20261103.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20261103.11},
      abstract = {The study with a descriptive and analytical approach, foundations on existing literature on job satisfaction and employee welfare, including previous theories proposed by Armstrong, Herzberg, examines the impact of Employee Welfare facilities on Job satisfaction of Automobile Industry in India. The study find the key welfare facilities such as canteen facilities, accommodation, loan facilities, healthcare, transport, and overall working conditions. The research develops hypotheses framework to test the relationship between concern welfare facilities and job satisfaction. The study was well examined through a structured questionnaire and based on secondary sources. The study findings suggest that employee welfare facilities positively influence employees’ job satisfaction by improving their morale, health, and overall  HYPERLINK "http://well-being.on"  \h well-being. On the other hand, inadequate healthcare, low pay, poor benefits, high work pressure, and rising living costs negatively affect satisfaction of the employee and also increase turnover intentions. The study highlights that welfare facilities such as canteen services, accommodation, and financial support mechanisms significantly contribute to enhancing employee commitment and productivity. The study aims to examine the impact of welfare facilities on the job satisfaction of supporting staff in the automobile sector in India. Supporting staff form a substantial portion of the workforce and are directly involved in the assembly and production processes, making their satisfaction essential for organizational performance.},
     year = {2026}
    }
    

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    T2  - American Journal of Management Science and Engineering
    JF  - American Journal of Management Science and Engineering
    JO  - American Journal of Management Science and Engineering
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    EP  - 77
    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.ajmse.20261103.11
    AB  - The study with a descriptive and analytical approach, foundations on existing literature on job satisfaction and employee welfare, including previous theories proposed by Armstrong, Herzberg, examines the impact of Employee Welfare facilities on Job satisfaction of Automobile Industry in India. The study find the key welfare facilities such as canteen facilities, accommodation, loan facilities, healthcare, transport, and overall working conditions. The research develops hypotheses framework to test the relationship between concern welfare facilities and job satisfaction. The study was well examined through a structured questionnaire and based on secondary sources. The study findings suggest that employee welfare facilities positively influence employees’ job satisfaction by improving their morale, health, and overall  HYPERLINK "http://well-being.on"  \h well-being. On the other hand, inadequate healthcare, low pay, poor benefits, high work pressure, and rising living costs negatively affect satisfaction of the employee and also increase turnover intentions. The study highlights that welfare facilities such as canteen services, accommodation, and financial support mechanisms significantly contribute to enhancing employee commitment and productivity. The study aims to examine the impact of welfare facilities on the job satisfaction of supporting staff in the automobile sector in India. Supporting staff form a substantial portion of the workforce and are directly involved in the assembly and production processes, making their satisfaction essential for organizational performance.
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