Based on our brief discussion on employee benefits all of the following are true EXCEPT: One of the advantages of employee benefits as a means of compensation is that they tend to attract, retain and motivate employees in predictable ways. Employee benefits have become a very significant and costly aspect of employee compensation. Employers are legally mandated to provide some employee benefits. Employers cannot allocate employee employee benefits to employees on the basis of sex, race, or religion. Employee benefits are compensation paid to employees in forms other than cash