Compensation has become a far more complicated issue than just deciding how much to pay your employees. In addition to salary, employers must consider many other components — 401(k) plans, stock options, bonuses, and vacation — that have become part of compensation packages today.
Employees also have greater expectations of what should be included in their compensation packages, and they may demand specific benefits that can be costly for small businesses.
Costly or not, building fair and attractive compensation packages is critical for attracting and retaining employees. When setting up your compensation package, consider the following components:
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