Benefits: smaller-firm workers often getting less.

• Author: Marshall, Jeffrey
• Position: BusinessBRIEFS - Brief Article

While it seems common knowledge that big firms are able to offer more attractive benefit packages than their smaller counterparts, a new study funded by the Small Business Administration (SBA) Office of Advocacy quantifies the difference in cost to the employers.

The study, Cost of Employee Benefits in Small and Large Businesses, confirms that costs associated with these benefits vary dramatically in relation to firm size, resulting in fewer benefits for employees in smaller firms. Some of the highlights from the study include:

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* Paid vacation leave is the most frequently available benefit; access to pension plans is least common.

* The weighted average cost of health insurance premiums per enrolled employee is relatively high for the very smallest firms (fewer than 10 employees), and declines as firm size increases (25-99 employees) before increasing again for the largest firms (more than 1,000 employees).

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