NEW YORK — Many small businesses trying to weather the recession are cutting employee benefits along with other expenses, reducing or even eliminating their contributions to healthcare insurance and retirement plans.

These are painful moves that many companies undertake to save their cash flow and, in some cases, employees' jobs. Human resources consultants say owners should aim at making these cutbacks temporary — and to let employees know that their benefits will be restored as soon as possible.

"No one likes this — it's a bitter pill for everyone to swallow including my partner and me," said Margie Fox, co-founder of Maloney & Fox, a marketing communications firm based in New York. "We went from contributing 80 percent of healthcare to 50 percent."

Rob Wilson, president of Employco, a Chicago-based resources outsourcing company, said he's hearing from many clients who need advice about cutting benefits. Some are asking about reducing the amount of money they contribute to workers' 401(k) accounts, and wondering if they can make their plans non-matching, which allows employees to keep saving while a company suspends its contribution. Others are looking for ways to provide health coverage, but at a lower cost; many are switching to plans with higher deductibles.

Wilson said there are steps employers can take, at little or no expense, that will make it easier for employees to take on a greater share of healthcare costs. If a business decides to buy insurance with a higher deductible, it can also set up flexible spending accounts or health reimbursement accounts that will help workers save some money even as they're paying out more.

HR professionals say employers need to keep in mind that while benefit cuts may be necessary, they are likely to add to the pressure on many already cash-strapped employees.

Wilson said owners should plan on making cuts temporary, because benefits, whether they include health coverage, retirement plans or both, go beyond being perks: they are vital to recruiting and retaining employees.

"When the job market starts coming back, you're going to need good benefits because you want to attract the best workers," he said.

And, owners shouldn't be pampering themselves while the rank and file are losing benefits, Wilson said. If you're cutting benefits, this isn't the time to be taking your family on an expensive ski vacation.

Consultants recommend finding ways to compensate for the financial burden. Wilson suggested offering employees flex time; employees will love the opportunity to have an easier work-life balance, and it shouldn't cost the company anything.

At Maloney-Fox, employees are getting a few extra days off during the holidays to help make up for paying more for their health coverage, Fox said.

Some HR consultants advise against any benefit cuts at all.

"Take something away from someone who's making $30,000 to $40,000 a year, that's going to hurt," said Diane Arthur, who owns Arthur Associates Management Consultants Ltd. in Northport, N.Y. She warned that benefit cuts can hurt morale and, in turn, productivity.

"When the economy turns around, that's something they won't forget," she said.