How Small Businesses Compensation Packages

In: Business and Management

Submitted By makebra
Words 1880
Pages 8
University of Redlands

Makebra Bridges – Human Resources Management
Because of limited resources, many small businesses have difficulty recruiting & retaining top talent. In this paper, I will discuss how companies use indirect-financial incentives to gain a competitive advantage.

How Small Businesses Provide Competitive Compensation Packages in a Global Environment.

Table of Contents

Introduction………………………………………………………………………………………………………….. 2

Salary vs. Compensation ..………………………………………………………………………………….. 3

Indirect Financial Payments ……………………………………………………………………………….. 5 1. Employer Match Incentives 2. Cash Rewards 3. Flexible Hours 4. Tuition Reimbursement 5. Paid Time Off

Employee Rewards …………………………………………………………………………….……………… 12

Conclusion ………………………………………………………………………………………….……………… 13

In today’s workforce, small businesses—companies with 100 or less employees—are making a BIG impact.

* There are more than 23 million small businesses in America--accounting for 54% of all U.S. sales. * Since the 1970s, small businesses have provided 55% of all jobs and 66% of all new jobs. * The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail sales and provide jobs for some 8 million people. * The number of small businesses in the United States has increased 49% since 1982. * Since 1990, as big business eliminated 4 million jobs, small businesses added 8 million new jobs.
Entrepreneurs and entrepreneurial firms are attributed with a myriad of positive effects. And “while corporate America has been ‘downsizing’, the rate of small business ‘start-ups’ has grown, and the rate for small business failures has declined.”
Despite consistent economic growth, most small businesses have one thing in common—very limited budgets. So with limited…...

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