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Benets and Incentives
Fringe benets fall into two categories—satisers and motivators. e sat-
iser part is easy to determine. Just like with wages and salaries, the com-
pany should survey the local market and design a benet program that
is average for that market. Notice that in case of wages I advocated to be
slightly above average for that category, but for fringe benets the average
is sucient. e reason for this is that benets are satisers, not motiva-
tors. Once a benet is given it can hardly be taken away; it is taken for
granted. erefore, above- average fringe benets can be problematic when
times are tight and they have to ...