Seventy-seven percent of small business owners dont plan to give raises in 2010, according to a new survey.
Management consultancy George S. May International polled more than 1,000 U.S. small business owners for the survey and predicts that the lack of raises will cost businesses both talent and productivity.
The survey also found that that nearly 70 percent of small business owners dont share with their employees the total value of their hidden paycheck. That means benefit items including medical and dental insurance; sick, personal, and vacation days; education reimbursements; discount auto purchase plans; accidental death and personal loss insurance; workers compensation; profit sharing; and Social Security and Medicare. More than 50 percent of employees dont know what that hidden paycheck is costing them.
Pay is just one aspect of employee compensation, said May managing director Paul Rauseo. Other employee benefits essentially make up a hidden paycheck that many people easily forget, although it can add as much as 37 percent to their compensation.
