Research shows that employers whose benefits programs meet employees’ needs enjoy a significant competitive advantage in attracting and retaining employees. 1

In addition to the goals listed above (i.e., attracting and retaining qualified employees with the right benefits mix, while controlling the costs of benefits), organizations should use benefits to:

  • Increase employee morale
  • Reduce turnover
  • Increase job satisfaction
  • Motivate employees
  • Enhance the organization’s image among employees

Organizations can use benefits to motivate employees if rewards correspond with employee needs. For example, if the organization’s workforce includes many students, it may make sense for the organization to promote education by subsidizing education costs, providing bonuses for passing grades, or providing a facility where learning can take place.