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Providing Benefits For Your Employees

Jan 28, 2008
One of the most difficult decisions for a small business is whether to provide benefits to employees and which ones. This is a decision you need to consider carefully for several reasons. You want to be able to maintain employees, but at the same time you need to make a profit. For many small business owners, they must draw the line between paying for benefits and paying salaries. Certainly they can make the choice to pay benefits and lower salaries, but they will then have a problem keeping employees. On the other hand, failing to provide benefits prevents a small company from maintaining a staff of experienced workers. In most cases the end result is that the workers have to accept the position with no benefits, thus many small companies have a large turnover with the majority of workers being married women who don't require benefits or part-time help. This can be a difficult decision to make.

Before you begin operating your business you need to decide if you want to offer a benefits package to your employees. That doesn't mean you have to do it right away, but you should research it so that you know whether the cost will be too prohibitive for you to consider even in the future. It is a good idea to know as soon as possible if this is something you will even be able to consider. You will not be out of line if you choose not to offer benefits if you are in the retail business as many stores and other retail outlets only offer benefits to those who are at the assistant manager level and above. Others offer vacation and holiday pay even to part-timers but no health or life insurance. As a business owner, you have to decide if you want to take a smaller profit in order to maintain a staff of long time workers, or if you want to face the potential of a high turnover of staff. Your decision should be based upon the type of business and how long it takes to train new staff members, keeping in mind that every time you have to hire someone else, it costs money for you and your company and takes away from your other duties or from the duties of the person who is doing the training for you.

You have to decide for yourself as a business owner whether you want to offer benefits and which ones you afford. When making a decision you have to consider how much of your profit you will forfeit to offer benefits and whether you are willing to take less of a salary for yourself to ensure security for your employees. You may want to discuss it with your accountant or financial advisor for recommendations before you make a final decision. It's an easy task to say you will pay a large percentage of health insurance for your employees, but it's another issue to have enough of a profit to support that decision.
About the Author
Mark Stewart frequently writes on topics in the home business and Internet marketing industry. Finally learn the truth about how you can launch 6 streams of automated affiliate income streams in just 24 hours. For more information visit: Home Based Business Ideas
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