Companies with the highest motivation to improve quality are the most committed to treating their employees well, according to an Ernst & Young survey of more than 200 small companies. The greatest disparity between motivated and unmotivated companies is in the number offering 401(k) plans, with or without matching by the employer. Of the companies committed to quality improvement, 74% offer some kind of 401(k) plan, whereas only 46% of companies judged unmotivated offer one.
| Type of compensation or benefit offered | % of companies motivated to improve quality | % of companies unmotivated toimprove quality |
| Base salary | 96% | 95% |
| Bonus/incentive pay | 94 | 89 |
| 401(k) with some matching | 47 | 36 |
| Equity incentive | 41 | 34 |
| Employment agreement/contract | 35 | 27 |
| Defined-benefit pension plan | 29 | 20 |
| Defined-contribution retirement plan | 21 | 13 |
| 401(k) with no matching | 27 | 10 |
| Nonqualified deferred-compensation retirement plan | 11 | 18 |
Source: Ernst & Young survey of 259 members of the Institute of American Entrepreneurs, Dallas, May 1992.