Key Compensation Components

If you think you can't afford it, think again. Providing insurance to your employees sends the message that you care about their health and the health of their families. It can also be a vehicle

for promoting productivity. To minimize costs, consider having employees pick up part of the tab. Employees who have coverage through a spouse may want to opt out of a plan, particularly if there's a cost associated with it.

Life and/or disability insurance. This is also a benefit that usually costs less when it's purchased by an employer rather than by an individual.

Retirement plans. 401(k) plans have become popular because they're relatively easy to administer and are less expensive than traditional pension plans. Many employees like these plans because they maintain some control over the amount of their contribution and how the money is invested. Most small companies try to put some kind of savings or 401(k) plan in place, even if they don't contribute money to them.