Recent trends suggest that the best way for firms to control labor costs is to focus on limiting the growth of wages and salaries rather than controlling fringe benefits.
Fringe benefits have grown faster than wages in recent years.U.S.companies now pay an average of about $13,000 per employee in benefits.Moreover,fringe benefit packages are becoming so complex that the cost of administering them has also become a major burden.

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Fringe benefits have been growing faster than wages, making them a significant factor in labor costs. Therefore, controlling fringe benefits could be more effective in managing overall labor costs.

Recent Trends Suggest That the Best Way for Firms to Control