Question

Which of the following is (are) the reason(s) why firms may offer benefits to their employees? Select all that apply. There can be more than one answer.

Group of answer choices
A. Companies can increase sales through offering discounts on company products.
B. Certain benefits can attract and retain employees with certain characteristics.
C. Benefits can be obtained at a lower price by organizations.
D. Some benefits are required by law.

Answer 1

Firms offer benefits to employees to adhere to legal requirements, attract and retain talent, and obtain cost savings through economies of scale.

Step-by-step explanation:

Firms may offer benefits to their employees for several reasons:

• A. Companies can increase sales through offering discounts on company products.
• B. Certain benefits can attract and retain employees with certain characteristics.
• C. Benefits can be obtained at a lower price by organizations due to economies of scale.
• D. Some benefits are required by law.

For instance, legal mandates require firms to provide certain benefits, such as social security or workers' compensation. Moreover, offering competitive benefits helps attract talented individuals and increases employee retention, which can ultimately result in a more skilled and stable workforce. Lastly, companies often can obtain benefits at more affordable rates for their employees due to the volume of people they are insuring or supporting, leading to cost savings for both the employer and the employee.