According to the narrow view, what characterizes employee benefits?

The characterization of employee benefits from the narrow view focuses on plans that are usually established through a mutual agreement between employers and employees, which are not funded by the government. This perspective emphasizes the voluntary nature of these benefits, including health insurance, retirement plans, and other perks designed to support employees financially and socially.

In this context, "plans sponsored by employers and employees" means that these benefits are typically designed to enhance the employment package and are developed to attract, motivate, and retain talent within an organization. It highlights the collaborative involvement of both parties—employers providing benefits and employees sometimes contributing to costs or having a say in the offerings available.

Benefits mandated by law, such as workers' compensation and Social Security, fall outside this narrow view since they are required by government regulations rather than voluntarily chosen by employers. Commissions based on sales performance and incentives for safety performance are typically considered variable pay or performance-based compensation rather than benefits that fit within the standard definitions of employee benefits.

Thus, the correct answer captures the essence of the narrow view by reaffirming the role of employee benefits as plans shaped by the employer-employee relationship, distinct from those imposed by regulatory requirements or linked solely to performance metrics.