Quote:
Originally Posted by scottw
not at all, they are all costs of doing business, if you eliminate all benefits tomorrow, you could afford to pay them more...correct? why wouldn't you then pay them more...the money was already dedicated to them or on their behalf to an insurance company or retirement plan...are they suddenly less valuable to you if you eliminate the benefits???? and yes, in many cases opting out of health insurance entitles employees to a cash benefit in the form of higher wage which is why there are so many 20 and 30 something "uninsureds"...wages and benefits are the same thing essentially, combined they determine the value that you place on your employee...they are all paid out of your revenues(your compensation for their labor), just depends on how you slice it up...
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As usual, you're mostly wrong.
Benefits have a notional value that typically far exceeds the cash equivelent through tax exemptions, consolidated buying power or upside in the case of equities.
Rarely would you see an employeer give the employee full credit for not taking a benefit. That's exactly the point, by not giving cash the employee can see more value...they are not equal.
-spence