When it comes to work-life benefits, such as paid leave, small businesses usually have a different set of challenges and needs than large businesses have.

Several bills have been introduced in Congress this year to require paid sick days or expand FMLA protections. In addition, several states have proposed or passed bills to require paid sick leave and/or paid family leave.

Small firms "tend to not be favorably inclined to government-mandated benefits, simply because they can't afford them," says Bruce Phillips, a senior economist at the National Federation of Independent Business, which represents small and independent businesses. "They're cash-short and particularly trying to survive in times like this. They look carefully at what they can afford to offer. If they have an increase in costs, they can't just raise prices to compensate."

Small businesses generally prefer having the flexibility to come up with their own customized mix of benefits, based on what they can afford at the time. "It's very difficult for a one-size-fits-all mandate to work for small businesses," Phillips says.

When employees have a family emergency or a special need, small business owners often try to find ways to accommodate them on a case-by-case basis, he notes. "They do as much as they can afford," he says.

"Cost is certainly a challenge," confirms Judi Casey, director of the Sloan Work and Family Research Network. "One of the advantages that [small firms] have is they can really tailor the programs to meet the needs of their employees. Small businesses can customize a little bit. They can be more creative and a little more flexible than large businesses. They tend to be more informal. There tends to be less regulation. People may know each other better."

It's easier for small companies to "be more in touch with the individual needs and desires of employees," comments Julie Weber, a policy specialist with the Sloan Work and Family Research Network.

Large firms are more likely than small firms to provide benefits like dependent care flexible spending accounts, child care subsidies, paid leave and telecommuting (see chart).

In a 2008 study, the Families and Work Institute found that small employers are significantly less likely (48%) than large employers (76%) to offer any replacement pay to women during maternity leave, although they are equally likely (17%) to offer any replacement pay to men during paternity leave.

The organization also found that there is no statistically significant difference between the proportion of small employers (50 to 99 employees) and large employers (over 1,000 employees) that offer full FMLA coverage.

In some respects, small firms appear to have more leeway and success in creating a culture of flexibility. At least 64% of small employers say their supervisors are encouraged to be supportive of employees with family needs by finding solutions that work for both employees and the organization, compared to 47% of large firms. Likewise, 23% of small firms say their managers rewards those who support effective flexible work arrangements, compared to 13% at large firms, according to the Families and Work Institute.

However, large firms seem to have a slight advantage in formal, centralized training to address work-life needs. About 58% of large employers say they train supervisors in responding to the work-life needs of employees, compared to 46% of small employers, the institute reports.

Low-cost benefits

Small companies are especially interested offering in perks that won't break the bank. "Think low cost or no cost. There's a lot that you can do that doesn't cost a lot of money," Casey notes. "There's so much you can do for very little."

Some examples include flextime; telecommuting; telling workers about local backup child care options; providing enough time and private space for new mothers to pump breast milk; and hosting brown-bag seminars or lunchtime chats on work-life topics, such as parenting and elder care. Weber also suggests allowing employees to take their birthday as a paid holiday.

"We're hearing a lot about organizations trying to do more with less," Casey says. "Anything employers can do to be supportive is really appreciated at this time."

Don't forget the purpose of the work-life benefits is to improve recruiting, retention and productivity. "Small employers often use [work-life] programs as a way to attract top talent that might otherwise go to large employers," Casey points out. "They use it as a recruitment tool."

To ensure that your benefits are the right fit, experts recommend asking your employees what they want and need the most. "Don't do what other people have done until you're sure it's right for your employees. Match your interventions with what your employees are wanting," Casey advises.

She encourages small companies to be creative in thinking about options like cross-training, job-sharing and workplace flexibility. If a program or benefit doesn't seem affordable, consider whether you could make it affordable by creating or joining a consortium of small employers that team up to make a volume purchase at a better price.

Also, make sure that any new program or benefit aligns with your business needs. "What might work for one business might not work for another," Weber notes.

Karen Pecora-Barbour, president of The Barbour Group in Westminster, Md., a brokerage with five employees specializing in surety bonds, knows what works for her.

"The best thing any small business owner can provide is flexibility, so I try to be as flexible as I can. If there's a special need that they have, I'll try to accommodate that as best we can, and typically we always meet it," she says.

For example, she recently adjusted the work hours for an employee who was dealing with elder care issues. The company also offers informal flextime, some vacation time and unpaid leave, as needed.