SCKE Employee Practice Test 2025 - Free Employee Assessment Practice Questions and Study Guide

Question: 1 / 400

What is a significant benefit of providing benefits to employees?

It enhances employee turnover

It reduces workload for management

It enhances employee retention

Providing benefits to employees significantly enhances employee retention by fostering a sense of loyalty and commitment to the organization. When employees feel valued through comprehensive benefits, such as health insurance, retirement plans, and paid time off, they are more likely to remain with the company long-term. This is because benefits contribute to an employee's overall job satisfaction and well-being, making them view their employer positively.

Employees are more inclined to stay with an organization that invests in their health and future, reducing turnover rates. High retention not only lowers recruitment and training costs but also helps maintain institutional knowledge and a more experienced workforce, which can lead to increased productivity and a stronger company culture. Thus, investing in employee benefits is a strategic approach to build a stable and dedicated workforce.

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It limits employee responsibilities

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