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According to Williams (1995:1098,) benefit satisfaction is important for two reasons:

 

•      The costs of employee benefits are high to companies and because costs increases and generally exceed inflation, therefore companies have implemented changes in benefits programmes to control costs.

 

•      Benefit satisfaction is of theoretical importance because of its potential links with other important constructs.

 

Benefit satisfaction may be related to various behavioural attitudes such as organisational commitment. According to Williams (1995:1098), employee attitudes towards benefits have been found to be significant determinants of pay satisfaction and have been linked to behavioural outcomes such as absenteeism and turnover. Therefore, an understanding of benefit satisfaction may lead to an increased understanding of other important employee attitudes and behaviours.

 

In a study conducted by Lust (1990:92) the findings about benefit satisfaction were no surprise: employees who are more satisfied with their pay are also more satisfied with their benefits. It goes hand in hand and make up the total compensation package.

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