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Why do some firms let employees mix and match the benefit items they receive?
ABecause employees at different life stages need different things
BBecause a labor agreement forbids a standard package
CBecause benefits then cost the employer nothing at all
DBecause the appraisal rating decides the benefit level
Answer & Solution
Correct answer: A. Because employees at different life stages need different things
1. A single fixed benefit package suits some employees and wastes money on others.
2. A younger employee with a family may want medical, disability, and life insurance.
3. An older employee may prefer to move the same benefit money into a retirement savings plan.
4. Letting people select against their own needs raises the value of the package without raising its cost, so option C is wrong to claim the benefits become free.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Types of Compensation or Pay_
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