Accumulation-oriented benefits are designed primarily to reward what type of employees?

Accumulation-oriented benefits are structured to reward long-term employees, as these benefits typically increase in value with an employee's tenure at the organization. Examples of accumulation-oriented benefits include pension plans, retirement savings plans, and profit-sharing arrangements that improve in magnitude the longer an employee remains with the company.

Such benefits aim to foster loyalty and encourage retention by incentivizing employees to stay in the organization for an extended period. This system aligns the interests of both the employee and the employer, as it reduces turnover costs and enhances the company culture.

New employees with short tenure, part-time employees, and temporary employees often do not qualify for many of these accumulation-oriented benefits, which are usually reserved for those who demonstrate a commitment to the organization over the long haul. As a result, the focus is on long-term service, making this group the primary target for accumulation-oriented benefits.