Best Practices from the Best Employers

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Small companies need to think about what they can afford to pay, what their employees need and want and how they can best use their financial resources.

So many small employers simply cannot afford to provide benefits, even though they badly want to. How do you advise them to handle that?

Cohen: Be frank with your employees. It's great if your company can pay all the insurance premiums, instead of making an 80-20 split. But if you can't pay 100% for benefits, pay for what you can and then communicate that. Explain what you can afford and why, then acknowledge that you can't fix everything but you're doing the best you can.

A great company could distinguish itself by telling employees it can't afford to give them insurance, but passing along a list of resources where they can purchase coverage themselves. It's not ideal, but it shows the employees that you care about them, and they'll remember that when they decide whether to stay at your firm or not.

Some things that always gets mentioned in the large corporate "best employer" lists are quirky perks and fun activities. Did those factor in at the smaller firms as well?

Cohen: Definitely. Camaraderie is always important, and so are events that are meaningful. It could be having potlucks or providing food at company meetings or sponsoring a company softball team or always having bowls of M&Ms around the office. Small employers should be creative and do things that fit their organizations are in tune with what their workforce wants.

The other great perks that small companies can provide are career development opportunities. Small employers are sometimes limited in providing benefits, but they can create succession plans and talk to their employees about where they want to be five years down the road. Even in companies with low turnover rates, the best prospects should be developed for the next step in company leadership. Firms that recognize promising employees and give them training—because they see opportunities for them—will have employees stick around to realize those opportunities.

Where can small business owners learn more about the survey process and about the companies that made the grade in 2008?

Adler: Full coverage of the award ceremony and the winners are available online at our site and at the SHRM site.

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.