Some business owners offer compensatory time. You should be aware that the federal Fair Labor Standards Act does not allow for "comp time." If overtime is owed, it must be paid unless the employee is exempt from the overtime regulations. For any employees who qualify as exempt, "comp time" can be a nice distinguishing intangible benefit that smaller businesses can offer to look more attractive than big businesses.

Don't overlook the intangible benefit of having a quality work environment. Many employees say that money isn't everything. Large companies offer better benefits and often better pay, but then discourage employee loyalty, and will frequently abuse employees until they burn out, then toss them away. By treating employees courteously and being flexible on time off for family needs, you can make your workplace look more attractive than the big behemoth down the street.

A final area of fringe benefits which a few smaller corporations offer is minority equity ownership. Giving up equity to employees is a big company concept that usually does not work effectively for smaller businesses. In fact, the employee / minority shareholder can become a majority problem if there is a falling out or the employee leaves. If you truly want to give away equity, then you might discuss phantom stock rights with your lawyer. These rights prevent any stock from leaving your hands.