What is the likely impact of perquisites on the employees who receive them?
A) A lowered sense of commitment to the organisation
B) An elevated sense of status in the organisation
C) A perceived levelling out of special privileges among employees
D) Increased turnover due to lower restrictions on travel
E) Reduced job satisfaction since perquisites can be taxed

Question

Quizplus · Accepted Answer

Perquisites, such as company cars, expense accounts, or exclusive memberships, are typically perceived as a sign of status and an indication of the employee's importance to the organisation. As a result, employees who receive perquisites are likely to experience an elevated sense of status in the organisation.

Answer: E
 Perquisites can be subject to taxation, which means that the employee may be required to pay additional taxes on the value of the perks received. This can reduce the employee's overall job satisfaction.

What Is the Likely Impact of Perquisites on the Employees