1.

Evaluate the impact of fringe benefits on businesses

Answer»

Impact of fringe benefits/Positives/Advantages on businessesAttractive fringe benefit packages may RESULT in higher employee retention/reduces employee turnover.Attracts qualified/skilled/experienced employees who may positively contribute TOWARDS the BUSINESS goals/objectives.It increases employee satisfaction/loyalty as they may be willing to go the extra mile.Negatives/Disadvantages on businessesFringe benefits are additional costs that may result in cash FLOW problems.Administrative costs increase as benefits need to be correctly recorded for tax purposes.Decreases business profits, as incentive/package/remuneration costs are higher.It can create conflict/lead to corruption if allocated unfairly.



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