Question

A leading newspaper company noticed that many of its talented editors were resigning despite being paid competitive salaries. On conducting an internal survey, it was revealed that employees were dissatisfied as they were not being offered benefits over and above the salary, like the employees of other competitive firms. Realising that such additional benefits play an important role in motivating employees, the management decided to provide car allowance, housing facilities, medical benefits, etc. to retain employees in the organisation and improve their satisfaction.

Identify the incentive that the newspaper company decided to provide to their employees:

Options

• Bonus

• Retirement benefits

• Perquisites

• Profit sharing

Answer 1

Perquisites

Explanation:

• Perquisites (fringe benefits) are non-salary benefits such as car allowance, housing facilities and medical aid, exactly the items the newspaper decided to provide.
• These extras are used to motivate and retain employees beyond competitive base pay, unlike bonuses, retirement benefits or profit‑sharing, which are different types of rewards.