IGCSE, A Level Business Student Forum

Q15 Analyse the advantages of fringe benefits to a business, offered by a car manufacturing company. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Improved Productivity
[AN] When used for dependable transportation, company cars can help employees cut down on the stress and time spent commuting.
[AN+] Due to their increased energy and concentration, employees may be more punctual and productive as a result.

[KN] Enhanced Employee Morale
[AN] Offering perks like company cars to employees can improve their morale and job satisfaction.
[AN+] When workers feel valued and appreciated, they are frequently more motivated and engaged in their jobs, which improves performance as a whole.

[KN] Competitive Advantage
[AN] In the highly competitive car industry, offering attractive fringe benefits can set the company apart from its competitors.
[AN+] It can be a selling point for recruitment and marketing, attracting both customers and employees.

[KN] Increased Productivity
[AN] When employees have access to company vehicles, they can be more flexible and efficient in their jobs.
[AN+] This can lead to increased productivity and time saving within the company.

[kn] warrenty and support services
[AN] car manufacturer usuallly offer warrenty packages and after sale support services this ensure that business have access to maintenence and assure services
[AN+] thus reduces the financial burden of unforseen issues and contributing to the longevity of the fleet

[Kn]technology integration
[AN]car manufacturer oftenn coperate the latest technology into their vehicle this could include advance safety options and connectivity options and telematics system
[AN+]business can benefit from these technological advancement to enhance the safety and efficiency of their of their operations

[KN]enhanced employee motivation
[AN]this leads to higher productivity as they are fueled by fringe benefits
[AN+]this improves the overall performance of a business and help it grow as profits increase

[KN]increased brand loyalty
[AN]this can help retain employees and reduce employee turnovers
[AN+]this saves the business the costs of rehiring and spending on training

KN] improved worker motivation
 [AN]because they are motivated by fringe benefits, this results in increased productivity. (AN+)This enhances a company's overall performance and fosters its expansion as profits rise.

Employee Attraction and Retention
[An]Competitive fringe benefits, such as company cars, fuel allowances, or car purchase discounts, can attract top talent and retain skilled employees.
[An+]This aids in reducing turnover and recruitment costs.

[KN] Greater employee satisfaction.
[AN] Fringe benefits like healthcare act as safety of the employee which makes them feel more secured hence decreasing the total turnover rate.
[AN+] Thus this results in positive working environment with a boost to the car manufacturing growth.

[KN] Increased productivity.
[AN] Employees who feel that their well being is taken care of are likely to be more focused and motivated to work.
[AN+] Thus increases the employee morale, and so motivated employees maintains customer satisfaction , hence increasing the total market share too.

[kn] employees are satisfied
[an] different fringe benefits provided by the business can many times act as a safety element which makes them feel more secure
[an+] leading to decreases in employee turnover and a positive working environment for workers
[kn] increased productivity
[an] when employees feel that their worth is being noticed or that they are being taken care of they are more focused towards fulfilling their goals and responsibilities
[an+] increasing employee morale and so motivated employees maintain customer satisfaction increasing market share

[kn] fringe benefits like healthcare will act as safety for employee
[an] this will allow them to feel more secure in the firm
[an+] they will work efficiently as they would not have to worry about expenses incase of accidents

[kn] builds employee loyalty and satisfaction
[an] employees will not try to leave their jobs as theyd be satified
[an+] they would also would harder in order to keep recieving these benefits