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Encomiendas benefited Spanish settlers by, when the Spanish sailed across the Atlantic they found mines in Mexico, Peru, and parts of Americas. Spain was made rich. Ships landed and they got tons of gold and silver. THe Spanish affected the Native Americans had to work in the gold and silver mines.
The encomienda system (in theory) was a feudal-like system where Spaniards would offer protection and education to the native populations in exchange for labor and money/gifts. It was beneficial to the Spanish because they were able to extract labor at no cost.
Spain granted encomiendas—legal rights to native labor—to conquistadors who could prove their service to the crown. ... The Spanish believed native peoples would work for them by right of conquest, and, in return, the Spanish would bring them Catholicism.