Savvy small-business owners know there's more to a good employee-compensation package than a regular paycheck, bottled water and "casual-dress Fridays." In today's competitive hiring market, benefits--or "perks"--can often be the deciding factor in an employee's decision to accept a position or remain in one.
A recent study conducted by The Wall Street Journal, entitled "Small Business Insights--Focus: Employee Benefits," reveals that an overwhelming percentage of business owners surveyed utilize employee benefits--including health insurance, 401(k) plans, flextime and worker's compensation--as effective management tools.
Eighty-two percent of respondents surveyed report that they use benefits to recruit new hires; 90 percent indicate that a solid benefits package helps to retain good employees; and 69 percent claim that attractive benefits aid in motivating employees.
Not surprisingly, maintaining a package of perks that attracts, inspires and keeps a staff together doesn't come cheaply; the majority (65 percent) of business owners and managers surveyed also identify the cost of providing health benefits as a major challenge to their budgets.