Question

evaluate the impact of fringe benefits on businesses

Answer 1

Answer:

Impact of fringe benefits/Positives/Advantages on businesses

• Attractive fringe benefit packages may result in higher employee retention/reduces employee turnover.
• Attracts qualified/skilled/experienced employees who may positively contribute towards the business goals/objectives.
• It increases employee satisfaction/loyalty as they may be willing to go the extra mile.

Negatives/Disadvantages on businesses

• Fringe benefits are additional costs that may result in cash flow problems.
• Administrative costs increase as benefits need to be correctly recorded for tax purposes.
• Decreases business profits, as incentive/package/remuneration costs are higher.
• It can create conflict/lead to corruption if allocated unfairly.