According to a survey conducted by Intuit, 44% of the almost 1000 small-business owners who use their payroll packages report that they plan to hire within the next 12 months. Their concern is that even though benefits are essential to attracting new hires, they may not be able to afford them. Almost 90 % of the participants acknowledged that health insurance benefits are important to attracting talent, but over half now don’t offer that benefit due to costs. With legislation pending that could force their hand, companies may have to delay adding more employees because they can’t provide health care coverage. This in spite of the expectations that their businesses will grow in the next year.
Another benefit that in the past has been a part of most employees’ compensation package is some sort of retirement program. More and more companies are reducing the size of the retirement programs or eliminating them all together, and many feel it is not the company’s responsibility to provide that option.
All this is bad news for the employees themselves as well as our small-business owners – each needing the other to succeed, but neither getting the support to succeed and survive economically. Intuit’s survey found another interesting fact; only 1% of respondents reported receiving federal stimulus money. While these business owners are busy people, they may be missing an opportunity by not looking into the options available here.
An article at Entrepreneur.com (October 2, 2009) presents another view of benefits. The author, Bonnie Lee, points out that yes it’s true employees recognize that benefits are an important part of their job, AND there is tax benefit to the employer. The benefits are paid for with pre-tax dollars. Also, you don’t have to cough up matching FICA and Medicare contributions for this part of the employee’s compensation. Sound like a win-win! Again it takes some time to find and manage these benefits, but the company ends up with satisfied and loyal employees. Time to check it out.
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