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Despite shallow pockets, small
firms
can find ways to reward their workers
By Richard
Burnett • Bankrate.com
 No
matter which way you cut it, keeping good workers poses a major
challenge for small businesses.
Big companies have deep pockets. Most small
ones don't, and the price of worker retention can be dizzying for
the small-business owner.
Consider these figures from the Employee Benefits
Research Institute, a Washington think tank.
- From 1990 to 1997, the total cost of worker
compensation rose 40 percent from $3.35 billion to $4.69 billion.
- In that same period, wages and salaries rose
more than 41 percent.
- Noncash benefits (insurance, etc.) increased
by more than 33 percent, from $590 million to $787 million.
Despite the costs, a surprising number of small
businesses are still giving it their best shot in the benefits contest,
according to the research group.
Small-business
benefits
Government survey figures indicate that from 1990 through 1996,
the percentage of small businesses offering benefit programs either
increased or held steady.
Meanwhile, during that same period, the percentage
of medium-size or large companies has decreased in almost every
category, researchers say.
Clearly, small businesses do have a shot at
competing with the big players when it comes to hiring and retention,
says Joyce Gioia, a partner in The Herman Group
consulting firm in Greensboro, N.C., and co-author of Keeping
Good People.
Formula
for success
The best formula, she says, is to combine a stimulating, creative,
flexible work atmosphere with at least some fringe benefits.
"For example, a small business may not be able
to afford on-site child care, but the company can pay for child
care directly with pretax dollars," Gioia says.
"If that's not possible, then it doesn't cost
anything to at least put together a list of recommended child-care
providers in the area," she says. "That kind of effort sends a message
to employees that you do care about them and you want to help them
solve their biggest problems. Those kinds of messages can make a
substantial difference."
Richard Burnett is a freelance
writer based in Florida
To comment on this story, please e-mail the
Bankrate.com
editors
-- Posted: March 16, 2000
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