The greater value employees place on a benefit,the larger reduction in cash wages they will accept if the benefit is introduced into a compensation package. (Who Pays for Benefits?)

Question

Quizplus · Accepted Answer

This statement is true. It is based on the concept of "total compensation," which takes into account both cash wages and benefits. When a desirable benefit is offered, employees may be willing to accept a lower cash wage in exchange for it. This allows employers to offer competitive total compensation packages while still controlling their labor costs.

The Greater Value Employees Place on a Benefit,the Larger Reduction