As an employer, you are required to offer some benefits to your employees while other benefits are optional. For part-time employees, benefits are typically different than full-time employees. Here is your guide to part-time employee benefits:
Overview of Part Time Employment
Minimum and maximum hours of part-time employment
While there is no legal definition of part time, generally speaking, part-time employees are employees who work at least 20 hours and up to 35 hours. Each company must define (and should list in their employee handbook) what the definition of part time and full-time employment is. Make sure whatever you decide stays consistent in your company.
Advantages and disadvantages of part-time employment
Offering part-time employment has advantages and disadvantages. Some of the advantages are:
- Support: For businesses with busy seasons, it can be helpful to hire part-time employees to support your workforce during those busier times. Part-time workers can also offer support when full-time employees fall sick or take leave.
- Affordable: Because employers aren’t required to offer as many benefits for part-time employees, it can be more affordable to hire a part-time employee than a full-time employee.
- More Available Hires: Opening your company to hiring part-time employees will expand your hiring pool to include many more qualified and talented individuals.
Some disadvantages are:
- Lack of Connection: Some part-time employees won’t develop a strong connection with company values and coworkers. Because of this, part-time employees may be more likely to leave your company if a better offer comes up.
- Inconsistent Work: Because part-time workers aren’t present for the entire workday, they may have inconsistent results and progress with their work. This inconsistency can create problems for co-workers and their team.
Do Part-Time Workers Receive Employee Benefits?
Part-time workers can receive some employee benefits, but very few benefits are legally required. Some types of benefits require a certain number of hours worked to be eligible. For example, the Helpside Medical Plan requires that employees work at least 30 hours per week to participate. Check your benefits plan documents for more details. This information should also be clearly listed in your employee handbook. Additional benefits such as paid time off, paid holidays, etc., can be offered to both full-time and part-time employees if your company chooses. Be sure to have a consistent written policy in place so there is no confusion about eligibility.
Benefits for Part-Time Employees in Utah
Though you might not have to offer benefits to your part-time employees, doing so when possible may give you a competitive advantage when hiring and increase employee retention. Offering some benefits can resolve some of the disadvantages of having part-time workers. For instance, offering retirement plans to part-time workers can create loyalty and connection, something that is generally hard to foster in part-time workers.
Another benefit to be aware of is overtime pay. You may assume that none of your part-time employees cross the 40-hour threshold for overtime pay, but it is possible. Make sure you track part-time employees’ hours and pay overtime if they work more than 40 hours a week.
Need Help Managing Employee Benefits?
Benefits can be difficult to deal with on your own. Helpside offers many benefits options with competitive pricing and benefits experts to consult with you about your needs. If you’re interested in Helpside’s services or want some consulting on your benefits, contact us at firstname.lastname@example.org.