ABSTRACT
Fringe benefits fall into two categories-satisfiers and motivators. The satisfier part is easy to determine. Just like with wages and salaries, the company should survey the local market and design a benefit program that is average for that market. Notice that in case of wages I advocated to be slightly above average for that category, but for fringe benefits the average is sufficient. The reason for this is that benefits are satisfiers, not motivators. Once a benefit is given it can hardly be taken away; it is taken for granted. Therefore, above-average fringe benefits can be problematic when times are tight and they have to be reduced.
