Why offer benefits rather than just pay employees extra?

A small non-profit is thinking about hiring its first full-time staff member. The subject of benefits came up, and I wondered “if they can just go on the open marketplace and get benefits, wouldn’t it be so much easier to just pay them the cost of health insurance rather than deal with the HR paperwork?” What am I missing here? There must be a reason that’s not more common, right? Is it worse for the organization? Worse for the hire? Sorry if this is a naive/ignorant question; I just haven’t thought of it before and google wasn’t helpful.

submitted by /u/Rhododendrites
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A small non-profit is thinking about hiring its first full-time staff member. The subject of benefits came up, and I wondered “if they can just go on the open marketplace and get benefits, wouldn’t it be so much easier to just pay them the cost of health insurance rather than deal with the HR paperwork?” What am I missing here? There must be a reason that’s not more common, right? Is it worse for the organization? Worse for the hire? Sorry if this is a naive/ignorant question; I just haven’t thought of it before and google wasn’t helpful.
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