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 :
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"Bonus" is a one-time extra payment (like for festivals), whereas "Perquisites" are ongoing facilities like cars or houses.
Step 1: Understanding the Concept:
Financial incentives are rewards that can be measured in terms of money. These include salary, bonus, and various fringe benefits. Step 2: Detailed Explanation:
The benefits mentioned—car allowance, housing facilities, and medical benefits—are offered over and above the basic salary. In management terminology, these non-cash (or cash-reimbursed) benefits provided to employees are called "Perquisites" (or Perks). Step 3: Final Answer:
The specific incentive is (c) Perquisites.
