Standard Benefit and Employment Packages for Emerging Companies

Small and emerging companies offer many advantages that big companies don't. A tremendously attractive benefits package generally isn't one of them. Without the large numbers of employees required to negotiate favorable insurance deals and affordable financial services, small firms can't compete head-to-head with large companies for benefits. But they should offer a package that meets employee needs and is competitive with what other small companies offer.

A standard benefits package usually includes varying degrees of health coverage, a 401(k) plan, and a few fringe benefits. One thing to keep in mind: to receive a competitive rate on all health plans and to be able to participate in a 401(k) plan, a company must have at least five employees.

Health Benefits
Most small companies offer their employees the choice between an HMO (health maintenance organization) and a PPO (preferred provider organization). Typically, growing companies cover about 80 percent of the cost of medical insurance for employees and their dependents. Sometimes, depending on the age and marital status of their workforce, smaller companies cover 100 percent of the health insurance cost for employees and none for spouses or dependents.