Question

why do you think employers do a cost-benefit analysis when developing organizational perks? a.) they need to understand if employees would appreciate higher pay instead of perks. b.) they need to see if a possible perk is worth the cost. c.) they need to see how the perks will impact employees' salaries. d.) employers need to understand the implementation details of perks.

Answer 1

Employers use cost-benefit analysis to assess if the value of organizational perks outweighs their costs, aiming to improve employee productivity and loyalty while being cost-effective.

Step-by-step explanation:

Employers conduct a cost-benefit analysis when developing organizational perks to determine the value of such perks compared to their cost. This analysis helps in making decisions that balance financial considerations with employee satisfaction and productivity.

By comparing the marginal costs and marginal benefits, employers can see if a possible perk offers more value than its cost, potentially leading to well-motivated employees and reduced turnover from offering efficiency wages.

Benefits such as improved productivity, employee loyalty, and reduced hiring costs weigh against the monetary and effort costs associated with implementing new perks. Considering these factors, employees might appreciate higher pay or perks based on their effectiveness in boosting morale and productivity.