Reasons for Granting Fringe Benefits 1. Provision for the need of employees 2. Meeting union demands 3.

Maintaining the worker s living standards 4. Management s willingness to grant fringe benefits 5. Increased government regulation of business and industry

6. Boosting employee morale 7. Effects of World War II 8. Effects of Inflation and other Economic causes 9. To attract and retain employees

Planning and Administering Benefits and Services A program for fringe benefits should be carefully planned by top management, fully appreciated and supported by the employees, and wisely administered by a competent staff. Administering benefits are usually assigned to the personnel department.