Employee Benefits

Question 10 • POP Financial Math 26/27

Which of these is an example of an employer using benefits to encourage employees to stay with the company?

Answer

The employer provides paid time off, which the employee must use in the calendar year.

The employer provides benefits which are in line with the standard benefits provided by other employers in the industry.

The employer matches the amount of money that the employee pays towards Social Security.

The employer offers stock options, which require the employee to work for a specific amount of time before they vest.

Explanation

Stock options that vest only after an employee has worked for a specific amount of time encourage the employee to stay until the vesting date. Paid time off that must be used during the year does not require continued employment over time, and standard industry benefits or Social Security matching do not create the same retention incentive. The correct choice is D: offering stock options with a work requirement before they vest.

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