To recruit in the United States, a startup needs more than a competitive salary. Employees expect health insurance (usually with vision and dental coverage) and a 401(k) retirement plan, and disability insurance is worth adding. Budget $800 to $1,500 per month per employee for health insurance alone, and up to $2,000 with all benefits. Paid leave is set by contract, not by federal law, so define the rules in an employee handbook.
In the United States, a salary alone offers no protection. Without health insurance, a retirement plan or coverage in case of sick leave, an employee can find themselves vulnerable overnight. For a French startup establishing itself in the U.S., employee benefits become a crucial tool for recruitment and retention.
In France, employment automatically grants certain rights. Social security, unemployment benefits and retirement form an implicit, rarely questioned foundation. In the United States, this foundation does not exist. “In the United States, if you only provide a salary, the employee is not protected from anything. If they become ill, they can find themselves without any coverage,” explains Laurence Goleret Ruiz, co-founder of Orbiss, an accounting, tax and consulting firm based in the United States.
In this context, compensation is no longer viewed the same way as in France. Salary becomes a starting point, while the overall benefits package influences both the candidate’s decision and the employer’s credibility. This is especially true since, for an American employee, joining a foreign company entering the market is still perceived as riskier than joining a local firm. “The first recruits know that not everything is fully structured yet. They have to trust the employer to quickly implement insurance and protections in a system where nothing is automatic,” emphasizes Laurence Goleret Ruiz.
For a French company starting out in the United States, certain building blocks quickly become essential. These are based first and foremost on health insurance, supplemented by vision and dental coverage, as well as a 401(k) retirement plan. “This allows us to recreate a functional foundation of protection, even if it remains very different from the French model,” summarizes Laurence Goleret Ruiz.
This foundation comes at a cost that many founders underestimate. “For health insurance alone, you have to budget between $800 and $1,500 per month per employee,” she explains. Once all the benefits are included, the amount can reach up to $2,000 per month per employee.
The question of financing then becomes strategic. The company can cover all or part of the premium. However, Orbiss warns of the side effects of shifting too much of the cost to employees. “If too large a share is left to the employee, they may decide not to take out the insurance, because even 20% can still be very expensive,” cautions Laurence Goleret Ruiz.
Another subtle point is that coverage can be adjusted according to family composition. Covering the employee alone, with children, with a spouse or with the whole family involves different costs and trade-offs. These choices directly influence the attractiveness of the offer, especially in a market where candidates carefully compare packages.
This issue is particularly sensitive during the first hires. “Insurance plans often begin with two employees, and the most attractive plans start with five,” she points out. The first employees therefore accept a greater degree of risk, which underscores the importance of clear communication and the employer’s credibility from the outset.
Beyond health care, Orbiss emphasizes a topic often overlooked by French founders: disability insurance. Two types of coverage structure the American model. Short-term disability insurance covers short periods of absence from work, while long-term disability insurance addresses more serious situations. This coverage is not automatic, but according to Orbiss, its cost remains relatively manageable. In some states, short-term disability insurance can also help cover maternity leave in the absence of a structured public system.
These mechanisms are one of the main sticking points for French entrepreneurs, but for employees, these benefits are far from insignificant. “Anything we can offer in terms of benefits improves well-being: the well-being of being able to access health care and not finding oneself without income in case of hardship,” emphasizes Laurence Goleret Ruiz.
The final shock is cultural. In the United States, much of what is governed by law in France becomes contractual. “Labor rights are defined by the states, with significant local disparities,” notes Laurence Goleret Ruiz. Vacation time is the most striking example. No federal framework mandates a minimum number of days; everything is based on negotiation. While there is no federal minimum for paid vacation, many states and cities nevertheless impose rules on sick leave. In California, for example, the law provides for at least five days of paid sick leave per year, but some cities like San Francisco and Los Angeles apply higher thresholds.
In practice, a base of around ten days of paid leave and a few sick days is common, although many companies go beyond this to remain attractive, sometimes even approaching European standards. These additional days are often seen as a relatively simple lever, as they have no immediate impact on cash flow.
The rules still need to be formalized precisely. How leave is earned, carried over or paid out when an employee leaves must be set out in internal documents, in particular the employee handbook, which structures the company’s practices.
This contractual approach is part of a broader framework: employment at will. “Employers who set up operations mainly focus on the fact that they can lay off employees overnight, but they forget that employees can leave just as quickly,” emphasizes Laurence Goleret Ruiz. In a market that has long favored talent, retention is a constant challenge.
For a French startup establishing itself in the United States, employee benefits are neither a perk nor a bonus. They are basic infrastructure, essential for recruiting, reassuring and retaining talent in a system where nothing is automatic. “The more protective a company is, the more it can recruit,” concludes Laurence Goleret Ruiz.
To budget the full cost of a hire, see our guide to salaries in the United States. Orbiss helps international companies design employee benefits and run compliant U.S. payroll. Talk to our team before your first hire.
Originally published in French by Maddyness. This article has been translated and adapted for an English-speaking audience. Read the original version.
Health insurance first, usually supplemented by vision and dental coverage, and a 401(k) retirement plan. Short-term and long-term disability insurance are often overlooked by French founders but are worth considering, as their cost remains relatively manageable.
According to Laurence Goleret Ruiz, budget between $800 and $1,500 per month per employee for health insurance alone, and up to $2,000 per month per employee once all benefits are included.
The company can cover all or part of the premium. But if too large a share is left to the employee, they may decide not to take the insurance, because even 20% can still be very expensive.
There is no federal minimum for paid vacation; it is set by contract. Many states and cities do require paid sick leave: California requires at least five days per year, and some cities like San Francisco and Los Angeles set higher thresholds. In practice, around ten days of paid leave plus a few sick days is common.
Under employment at will, the employer can end the employment relationship quickly, but employees can also leave just as quickly. That is why retention, and the benefits package that supports it, matters so much in the U.S.
This article is for general informational purposes only and does not constitute legal, tax, or accounting advice. Rules and requirements vary by company, individual, and jurisdiction, and can change. Please seek advice appropriate to your specific situation.