Employee Benefits and its Impacts on Business Performance-A Systematic Review

Abstract

Despite increasing awareness of employee benefits, there are still relatively few studies that provide a thorough examination of how employee benefits affect various performance measures organizations. This paper provides an overview of the definition and categories of employee benefits, important employee benefits from the employee's perspective, and the influencing factors, then analyze reasons contributing to the mismatch of employees' expectations and actual benefits offered and the impacts of benefits on four aspects of business performance, namely retention, engagement, commitment, motivation, and productivity. This systemic and comprehensive understanding of employee benefits and their impacts on business performance contribute to the managerial implication of human resource management to redesign the compensation package to meet the expectations of the workforce and, in return, achieve desired performance.