Even though 77 percent of small business owners don’t plan to give raises in 2010, most aren’t even talking to employees about their "hidden paycheck", according to a survey of more than 1,000 U.S. small business owners by management consulting firm George S. May International. And that’s a mistake that will cost them talent and productivity.

"Pay is just one aspect of employee compensation," said Paul Rauseo, managing director of George S. May International. "Other employee benefits essentially make up a hidden paycheck that many people easily forget, although it can add as much as 37 percent to their compensation."

Results show that nearly 70 percent of small business owners don’t share the total value of the hidden paycheck with employees. But more surprisingly, more than 50 percent don’t even know what that hidden paycheck is costing them.

"At a time when employees are wearing multiple hats due to budget cuts, cost of living increases are expected by most, but that’s not happening," Rauseo said. "A benefits statement/benefits paystub is more important than ever to communicate a company’s true value to employees. An employee who moves to another company to make another $2,000 a year may be losing $5,000 in benefits if not compared properly."

George S. May defines the hidden paycheck as including such items as medical and dental insurance; sick, personal, and vacation days; education reimbursements; discount auto purchase plans; accidental death and personal loss insurance; workers’ compensation; profit sharing; and Social Security and Medicare.

According to the survey, health insurance premiums account for about 50 percent of the hidden paycheck – an expense small businesses are trying to control. Thirty-three percent have looked for a different carrier, 20 percent have considered higher deductibles, 19 percent have considered higher co-pays, and the rest are looking at tactics like canceling or lessening coverage.