In today's sizzling job market, attracting and retaining valuable employees is no longer a matter of simply providing a competitive salary. Job seekers are increasingly asking about additional benefits, with a retirement plan often standing near the top of their agenda.

Yet while 80% of large corporations offer some type of retirement plan, only 1 in 4 small companies can say the same. The explanation? Many small companies believe they lack the infrastructure and financial resources needed to offer such a plan.

Just because your company may not be able to afford the administrative and record keeping costs associated with a 401(k) plan, it doesn't mean that you are without options. Your business may in fact be eligible for a cost-effective retirement alternative called the SIMPLE-IRA.

This buying guide is designed to help you choose a SIMPLE-IRA for your company. You can choose to read this guide from beginning to end, or jump directly to a section of interest by clicking on the links above.

The SIMPLE-IRA is targeted at businesses with 100 or fewer workers that currently offer no other retirement savings plans to their employees.

All employees who expect to earn $5,000 in the calendar year and have earned $5,000 in any two preceding years are eligible to participate.

Introduced by the Small Business Job Protection Act of 1996, SIMPLE is an acronym that stands for "savings incentive match plan for employees." The primary catch with the SIMPLE-IRA is that employers are required to make contributions to the plan. Employers have two types of contributory options available to them.

The first contribution method encourages employee participation by requiring the employer to match all employee contributions up to 3% of their salaries, with a $6,000 limit. In addition, employers are allowed to match a lower percentage of employee contributions for two out of every five years.

The second option is a fixed contribution plan. In this case, employers pay a flat 2% of a worker's salary, up to a maximum of $3200. This contribution is required for all participating employees, regardless of whether the employees contribute on their own. A 401(k) plan, in contrast, does not require employer contribution.

While a SIMPLE-IRA holds tremendous appeal to small businesses that operate under a tight cash flow, it may be restrictive for more established companies, regardless of their size.

For one, annual SIMPLE-IRA employee contributions are capped at $6000, in contrast to 401(k) plans that have a potential maximum employee contribution limit of $10,000.

In addition, whereas employer contributions vest immediately (thereby giving the employee 100% ownership to all funds), 401(k) plans allow companies to use their own discretion. As a result, 401(k)s provide companies with the opportunity to build incentives into their plans. For instance, a company that is concerned about retaining employees can choose to match according to a vesting schedule.

While you can set up a SIMPLE-IRA through an insurance company or third party administrator, the most competitive deals can be found at a brokerage or money management house.

Set-up fees can be as low as $15-$25 per employee, with annual administrative and record-keeping fees ranging anywhere from $0-$600+. This is considerably less than the few thousand dollars associated with a typical 401(k) plan.

Shop Around
Make sure to shop around and get several quotes--annual fees can vary drastically.

Survey Your Staff
Get a sense for how eager employees are to contribute to their accounts. The fixed contribution may be more cost-effective if employees decide not to defer their salaries.

Different Needs for Growing Companies
As you grow, you may find that a 401(k) plan may make more sense. By the same token, tight cash flow might mean that the SIMPLE-IRA may need to be temporarily put on hold.