Operations Due Diligence: An M&A Guide for Investors and Business

EMPLOYEE BENEFITS

Benevolence today comes primarily in the form of employee benefits. This benevolence is offered because the labor market drives the business to compete for skilled employees rather than being the result of any paternalism toward the employees (however, there are some true exceptions to this).

There are many factors that impact the desire of employees to work for a business, and these vary greatly depending on the personal needs and motivation of each employee. A benefit for one employee may not be seen as a benefit to another. Benefits drive the overhead costs of the business, and therefore there is a trade-off between costs and benefits that has to be balanced. Benefits are drivers of employee risk and opportunity in the form ...