Which factor may discourage employees from participating in a contributory benefit plan?

Participation in a contributory benefit plan can be significantly influenced by the costs associated with premiums. When employees perceive that the contribution they need to make toward the benefits is high, often due to the overall premium costs, they may choose to opt-out of the plan. This financial consideration is a critical factor, as employees are often budget-conscious and may feel that the benefits do not provide adequate value in relation to what they need to pay.

High premium costs can create a barrier, particularly for those who may already feel financially strained or who may not see the immediate benefits of the offered plan. If employees find that their take-home pay is heavily impacted by the required contributions, it can lead to a reduced interest in participating, despite the potential advantages of the benefits offered.

In contrast, while factors like high administrative costs or lack of interest can play a role in decision-making, they typically do not have the same immediate impact on personal finances as premium costs. Similarly, mandatory contributions could lead to participation, as employees do not have a choice but may still harbor dissatisfaction or a sense of financial burden because of how much they have to contribute. Thus, the perception of premium costs as a deterrent makes it the most impactful factor among the options provided regarding participation in contribut