INTRODUCTION
Social security measures help improve employees' working conditions and living standards (Manasa, 2016). It also ensures the satisfaction of people's basic psychological and safety needs (Istomina, 2022). Even though the law insists on compulsory implementation of such measures, small businesses face challenges in properly complying with the law (Xue-jia, 2021). Such non-compliance can reduce employee satisfaction as these welfare measures are positively related to employee satisfaction (Kaur, 2017). This study analyses how small businesses registered in Kerala follow such regulations and whether this compliance helps improve employee job satisfaction.
LITERATURE REVIEW
The benefit system of an organization makes it possible to motivate its employees and make them attached to the organization (Hina, 2009). Social security benefits are mandatory employee benefits as per the law of the Nation (Nassolo Belinda Kitata, 2023). The principal social security laws enacted for the organised sector in India are: The Employees State Insurance Act 1948, The Employees' Provident Funds & Miscellaneous Provisions Act 1952, The Workmen's Compensation Act 1923, The Maternity Benefit Act 1961, and The Payment of Gratuity Act 1972 (Labour, 2024).
The ESI Act 1948, encompasses certain health-related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease, or death due to employment injury, resulting in loss of wages or earning capacity-total or partial.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is a welfare legislation enacted to institute provident funds, pension funds, and deposit-linked insurance funds for employees working in factories and other establishments. The Act aims at providing social security and timely monetary assistance to industrial employees and their families when they are in distress and/or unable to meet family and social obligations and to protect them in old age, disablement, early death of the bread winner and in some other contingencies.
The main objective of the Workmen Compensation Act, 1923 is to impose an obligation upon employers to pay compensation to workers for accidents arising out of and in the course of employment. The Act applies to the persons employed in factories, mines, plantations, mechanically propelled vehicles, construction works, and certain other hazardous occupations. The Act provides for payment of compensation to the employees and their dependents in case of injury and accident {including certain occupational diseases) arising out of and in the course of employment and resulting in disablement or death.
The Maternity Benefit Act was passed in September 1961 and received its assent on 12th December 1961. The Act regulates the employment of women in factories, mines, the circus industry, plantation units, and shops or establishments employing 10 or more persons except the employees covered under the Employees State Insurance (ESI) Act, 1948 for certain periods before and after birth and provides for maternity and other benefits.
The Payment of Gratuity Act, 1972 provides for a scheme of compulsory payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railway companies, motor transport undertakings, shops, or other establishments on the termination of his employment after he has rendered continuous service for not less than five years on his superannuation, or his retirement or resignation, or his death or disablement due to accident or disease.
According to Edy Sutrisno (2014), job satisfaction is quite an interesting and important issue because it has proven to have great benefits for the interests of individuals, industry, and society. For individuals, research on the causes and sources of job satisfaction allows for efforts to increase their happiness in life. For the industry, research on job satisfaction is carried out to increase production and influence costs by improving employees' attitudes and behavior. Furthermore, society will certainly enjoy the maximum capacity of the industry as well as increased human values in the context of work. With job satisfaction, an employee can feel whether his work is pleasant or unpleasant to do. Satisfied workers also tend to engage in organizational behavior that goes beyond their job and role descriptions, and helps reduce the workload and stress levels of members in the organization. Dissatisfied employees tend to be resistant with leadership and engage in a variety of counterproductive behaviors.
Job satisfaction is influenced by the extent of social security benefits offered in the organization (Jorge O Brusa). The theoretical framework of this study is grounded in the social exchange theory, which hypothesizes that employees’ job satisfaction is influenced by the perceived benefits they receive from their employers (Malinowski, 1922; Homans, 1961). This study analyse whether the laws are followd in small business and whether it helps in improving the job satisfaction of employees.
METHOD
This study employs a quantitative research design to investigate the relationship between the implementation of social security laws and employees' job satisfaction in small businesses. Data was collected from 100 respondents working in small businesses across various sectors in India, using the convenience sampling method. A structured questionnaire, developed based on validated scales from previous studies, was used to gather data. The questionnaire consisted of two sections: the first section assessed the extent to which social security laws (e.g., Maternity Benefits, Health Insurance) were implemented, while the second section focused on employees' job satisfaction. Descriptive statistics and regression analysis were used to analyze the data.
RESULTS
Cronbach’s alpha gives a value of 0.786 which is acceptable for reliability. KMO and Bartlers test give 0.679 which indicates sample is adequate. The total variance explained is 37.937% which is below the maximum limit of 50%. So, there is internal validity. Skewness is -0.434 and Kurtosis is 1.33 which are within accepted limits. The following tables highlight the descriptives and regression analysis :
| Table 1- Descriptive Statistics | Table 1- Descriptive Statistics | Table 1- Descriptive Statistics | Table 1- Descriptive Statistics |
| N | Mean | Std. Deviation | |
| Implementation of Social Security Laws in the Organisation | 96 | 1.063 | .2433 |
| Satisfaction in Implementation of Social Security Laws among Employees | 96 | 3.594 | .9578 |
| Job Satisfaction | 96 | 3.5807 | .35494 |
Source: Primary data
The above table indicates that most organizations has implemented social security laws (Mean=1.063). but the satisfaction in the implementation of law is average. Job satisfaction is also average.
| Table 2- Correlations | Table 2- Correlations | Table 2- Correlations | Table 2- Correlations |
| Satisfaction in Implemtation of Social Security Laws among Employees | Job Satisfaction | ||
| Satisfaction in Implemtation of Social Security Laws among Employees | Pearson Correlation | 1 | .496** |
| Satisfaction in Implemtation of Social Security Laws among Employees | Sig. (2-tailed) | .000 | |
| Satisfaction in Implemtation of Social Security Laws among Employees | N | 96 | 96 |
| Job Satisfaction | Pearson Correlation | .496** | 1 |
| Job Satisfaction | Sig. (2-tailed) | .000 | |
| Job Satisfaction | N | 96 | 96 |
| **. Correlation is significant at the 0.01 level (2-tailed). Source: Primary Data | **. Correlation is significant at the 0.01 level (2-tailed). Source: Primary Data | **. Correlation is significant at the 0.01 level (2-tailed). Source: Primary Data | **. Correlation is significant at the 0.01 level (2-tailed). Source: Primary Data |
The findings of this study show a moderately positive correlation. It indicates that employees who are satisfied with the implementation of social security laws are more likely to be satisfied with their jobs overall. This could be attributed to the peace of mind and security that effective social security benefits provide, which can lead to increased job satisfaction and potentially improved employee performance.
Table 3 - Regression Analysis
| R | 0.496 |
| R Square | 0.246 |
| Adjusted R Square | 0.238 |
| Std. Error of the Estimate | 0.30981 |
Source: Primary Data
The regression analysis depicts a moderately strong positive relationship between employee satisfaction with social security laws and their overall job satisfaction. The R Square of 0.246 indicates that approximately 24.6% of the variation in overall job satisfaction can be explained by satisfaction with social security laws.
Though this model explains significant portion of the variance in job satisfaction, other factors like work place environment and individual differences probably also contribute to employee satisfaction. The standard error of the estimate is moderate which means predictions made by this model are fairly accurate. In general, these findings imply that effective social security policies could be an important tool for enhancing staff morale as well as reducing turnover rates.
Table 4 - ANOVA
| Model | Model | Sum of Squares | df | |||
| 1 | Regression | 2.946 | 1 | .000b | ||
| 1 | Residual | 9.022 | 94 |
Source: Primary Data
The regression analysis indicates a moderately strong positive relationship between employee satisfaction with social security laws and their overall job satisfaction. The ANOVA table confirms the statistical significance of this relationship and the model's ability to explain a significant portion of the variance in job satisfaction. These findings suggest that implementing effective social security policies can be a valuable strategy for improving employee morale and retention.
CONCLUSION
This study analyze the relationship between small businesses’ implementation of social security law and employee job satisfaction. Study reveals a moderate but strong positive correlation. High levels of job satisfaction are reportedly enjoyed by employees who feel content with the operations of these laws. Even though regression analysis indicates a significant relationship among variables, other elements such as workplace culture, salary and career advancement would also play an important role in the improvement of employee satisfaction. Hence organizations are encouraged to make their working environment conducive.
Here are some suggestions aimed at improving worker satisfaction and ensuring that small enterprises follow social security regulations: (1) stricter measures of enforcement of laws (2) educational programs aimed at teaching small business proprietors about the laws and advantages associated with social security (3) government assistance in compliance with laws; as well as (4) provide awareness to employees regarding their rights and equipping them to ask for it. By doing so, organizations can create a more motivating and supportive atmosphere in order to benefit both their employees and themselves.
BIBLIOGRAPHY
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