Management Sciences and Quantitative Methods Commons^™

Bang For The Buck: Understanding Employee Benefit Allocations And New Venture Survival, Jake G. Messersmith, Pankaj C. Patel, Christopher Crawford

Department of Management: Faculty Publications

Providing employee benefits is costly for new ventures, yet offering such inducements is often essential to developing human capital. While a broad combination of employee benefits could yield synergistic effects, adopting a large number of benefits may not be feasible for resource constrained ventures. To ensure survival, while limiting misallocation of scarce resources towards benefits that have lower returns, entrepreneurs must be selective in choosing the benefits that generate the most ‘bang for the buck’. Our study assesses the effects of employee benefit offerings on venture survival odds. Based on a longitudinal sample of 1012 US-based ventures from the Kauffman …