The vast majority of executives in North America say that employee benefits help their companies attract and retain talent and that benefits are important to competitiveness.
Financially, employee benefit programs provide better returns than cash. A dollar on an employee's paycheck is worth much less than a dollar after paying income tax. But employee group benefits aren't like that. Payments to group benefit plan are gengerally 100% tax deductible as business expenses, while empoyees receive the benefits tax free. Further employee benefits may worth 10x their cash equivalent.