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Which of these is an example of an employer using benefits to encourage employees to stay with the company? a. The employer provides paid time off, which the employee must use in the calendar year. b. The employer provides benefits which are in line with the standard benefits provided by other employers in the industry. c. The employer matches the amount of money that the employee pays towards Social Security. d. The employer offers stock options, which require the employee to work for a specific amount of time before they vest.

Ask by Mann Colon. in the United States
Mar 11,2025

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Answer

The employer offers stock options that vest only if the employee stays for a specific time.

Solution

**Step 1:** Analyze each option. - **Option a:** The employer provides paid time off, which the employee must use in the calendar year. This benefit is standard and does not require the employee to stay with the company beyond the calendar year. - **Option b:** The employer provides benefits in line with industry standards. Standard benefits do not offer additional incentive for retaining employees compared to competitors. - **Option c:** The employer matches the amount of money that the employee pays towards Social Security. Matching Social Security contributions is often legally required rather than a retention strategy. - **Option d:** The employer offers stock options, which require the employee to work for a specific amount of time before they vest. This type of benefit is a retention tool because the employee must stay with the company for a set period in order to benefit from the vesting of stock options. **Step 2:** Identify the example that uses benefits to encourage employees to stay. The benefit that ties the employee's retention (i.e., staying with the company) to receiving the benefit is provided in **Option d**. **Final Answer:** \( \textbf{d} \)

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The correct answer in this scenario is d. The employer offers stock options, which require the employee to work for a specific amount of time before they vest. This strategy encourages employees to stay with the company for the duration needed to fully benefit from these stock options, thus aligning their interests with the long-term success of the organization. Employers often implement similar strategies, such as retention bonuses or tuition reimbursement programs that necessitate a commitment to stay for a certain period. These perks not only enhance employee satisfaction but also help build a loyal workforce, ultimately benefiting the company's growth and stability.

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