Productivity and wage effects of “family‐friendly” fringe benefits

Abstract

Family‐supportive employment benefits have become increasingly popular in recent years as an employer response to the increasing labor force participation of women, and the consequent need to balance work and family life. Economic theory predicts that these types of fringe benefits could at least partially pay for themselves through a combination of increased productivity and lower wages. A survey of 120 employers in an upstate New York county provides data on benefits packages and outcome measures that are used to test this hypothesis. We find that employers who offer flexible sick leave and child care assistance experience measurable reductions in turnover. Employers who offer benefits like flexible scheduling policies and child care also appear to offset part of the cost of these benefits by paying lower entry‐level wages than do their competitors.

Making the link between work-life balance practices and organizational performance

“…The availability of practices may also increase positive job-related attitudes, work effort and contextual behaviours by enhancing social exchange processes; as symbols of organizational concern for employees, work-life practices promote employee interest in and obligation to the organization (Pfeffer, 1981). Providing work-life practices can allow organizations to offer lower wages in exchange (Baughman et al, 2003), and attract investors by signalling the organization's legitimacy (Arthur, 2003).…”

Organizational Rewards System and Employees’ Satisfaction at Telekom Malaysia Be

“…Conversely, Baughman (2003) has found that employers tend to decrease wages once several benefits such as medicare, bonus, and annual leave, had been offered to employees after a few years. Woodbury (1983) in his study has found that workers view benefits and wages as substitutes, willing to give up wages for more benefits.…”

Factors Affecting Employee Motivation Towards Employee Performance: A Study on Banking Industry of Pakistan

“…The benefits are not frequently issued towards assessment and are consequently cheaper to achieve during an employer throughout the market [2]. Therefore, cheaper the benefits ought to amplify employee performance.…”

“…Further the benefits can proceed as an alternate for salary. To inspect the employer investigation facts and establish the employee's reduced the salary; once numerous benefits had obtained to the individual after a few years [2]. Moreover, the employees sight the benefits and salary as alternatives, disposed to provide salary in trade for extra benefits.…”