18 Analyse the disadvantages of fringe benefits to a business, offered by a school/college. [6]

[Sir Afzal Shad]

Q18 Analyse the disadvantages of fringe benefits to a business, offered by a school/college. [6]

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

[KN]
[AN]
[AN+]

[Kumail Alvi]

[KN] Cost Burden
[AN] Offering ancillary benefits like health insurance, retirement plans, or financial aid for transportation can drive up a college's operating expenses.
[AN+] A college's operating costs may increase if it provides additional perks like health insurance, retirement plans, or financial aid for transportation.

[KN] Potential for Employee Discontent
[AN] Giving certain employees access to fringe benefits while excluding others may cause employees to feel unfairly treated and unsatisfied.
[AN+] Employee satisfaction and morale can be negatively impacted by an uneven or inconsistent benefit distribution.

[Syed Mustafa Ali]

[KN] High costs
[AN] Offering fringe benefits can be expensive for the institute.
[AN+] Costs linked with benefits like health insurance, and tuition assistance can significantly impact the budget, especially for smaller schools or colleges with limited financial budget.

[KN] Adminstrative complexity
[AN] Managing and administering fringe benefits can be complex and time-consuming.
[AN+] Schools and colleges may need to commit significant resources to handle paperwork, and communication related to these benefits.

[ayyan ali]

[kn] impact on cashflows
[AN] fringe benfits often represent a fixed on going cost which can effect the school cash flows and limit its ability to respond to unexpected financial challenges.
[AN+]thus the school will strugle to mits day to day cot

[KN] limited motivational impact
[AN]while fringe benefits contribute to overall job satisfaction they may not serve as powerful motivvators for improve performance
[AN+]thus this doesnt mean for more benefits employyes will work hrder

[Maham fatima]

[KN] High cost
[AN] fringe benefits are extra perks offered to workers by the business to improve their motivation, and so they can be quite costly for the business, especially if these benefits are provided to all workers.
[AN] This can eventually result in lower profit margins, leading to lower return to owners of the business.

[KN] Cannot be discontinued
[AN] Once the business starts offering fringe benefits to an employee, discontinuing them can result in severe demotivation of the worker. so to say, the business will have to keep providing the particular benefit.
[AN] as a result, using fringe benefits as a method of motivation is a continuous process that remains a burden on the organisation for so long as the employee is there.

[khadija nasir]

[kn] increased costs for business
[an] especially if employees may leave after recieving the benefits which would mean that the business wasted money for nothing
[an+] schools/colleges may have to improvise on other costs such as salaries, management costs etc leading

[kn] jealousy element for employees not having the benefit
[an] this would create unfair competition in the workplace and a bad working enviornment
[an+] employees may be less productive especially teachers which could ruin the brand image of school

[Hadia Zia]

[KN] Jealousy may arise from fellow teachers who are not able to enjoy such benefits.
[AN] This will create a negative working environment.
[AN+] Alot of time must also be wasted if administration tries to solve such problems.

[KN] Increase in the costs.
[AN] Providing fringe benefits can be an expensive operation which can lead to reduced profit margins too for the school/college.
[AN+] Thus the institution may get financially weak which can ruin brand image.

[hafsa kashif]

[kn] increased costs
[an] fringe benefits are more expensive as an operation than any other payment method thus leading to reduced profit margins
[an+] decreasing amount of profit that can be saved up to expand which can ruin brand image
[kn] jealousy element can arise
[an] this will lead to a negative working environment where workers will not be willing to work at for too long increased employee turnover rate
[an+] thus a lot of time will be wasted if administration tries to solve such conflicts

[Salman Khalid]

[KN]costly to the business
[AN]it reduces the available funds for investment in research, development or innovative technologies that could enhance the companys competitive edge.
[AN+]restricts the company's ability to allocate resources to critical areas hindering overall growth and development.

[KN]affects employee morale
[AN]fostering an environment of distrust and decreased employee engagement it might lead to increased turnover rates
[AN+]low morale affects productivity and innovation