For what reasons would employees demand and employers grant fringe benefits such as insurance, pension, and...

For what reasons would employees demand and employers grant fringe benefits such as insurance, pension, and health programs instead of simply increasing wage rates?

Expert Solution

There could be even employers who may not be willing to match the Industry standards of compensation program owing to certain monetary constraints. Such employers could offer various significant perquisites that could well motivate the employees. Also, the employees may be given an opportunity to participate in the decision-making activity of the department or showcase their leadership skills wherever need be. Appropriate training measures could also enhance the skills of these employees and make them more productive to the Organization. Such employers believe in taking care of the well-being of their employees however, it could be only due to financial constraints that they may not be willing to pay appropriate monetary compensation.

Besides certain employers are more interested in the social security and well being aspect of the employees, as a part of their Company culture to treat the employees as invaluable human assets. Further, to keep the employees motivated and morale always high, various incentives go a long way in promoting the same. These could be the reasons for the employers to grant fringe benefits such as insurance, pension, and health programs instead of simply increasing wage rates.

keosha answered 2 years ago

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