Question

One reason employers offer benefits is that the benefits may be chapter for the employers to provide than if the employee obtained on their own. Even if a particular benefit costs less for the employer to provide, would the employer always want to offer this benefit? Why or why not?

Answer 1

Answer :

No, because of the following are the reasons

• It is difficult to keep everyone happy. A certain benefit may not be valued by some employees.
• The amount deducted from salary to purchase the benefits may me more than the amount that the employee may be willing to shell out.
• Sometimes switching cost increases due to benefits.

If particular benefits are relatively cheaper it makes sense for employer to provide it for example provision of health insurance to entire family helps employees feel safe and employer acts as corporate citizen. Moreover it adss onto employees satisfaction and higher employment trust and increases retention rate because the entire family gets secured and even employers cost of hiring new employees gets saved.

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