It is necessary to note, as stated in Armstrong (2009) and Hewitt (2002) that employee benefits are also of very
expensive part of the total set of tangible rewards, they may represent up to one-third of the salary costs and must be
carefully planned and managed. Globalization, outsourcing, a shift from manufacturing to a service economy, and
limited economic growth have greatly impacted employee benefits in the recent years. Compensation has declined
(Baglione, 2008), as have employee expectations of future salary increases.