Benefits of Part-Time Work: How You Can Attract, Engage, and Retain Valued Employees

If you’ve ever watched a soccer match, you’ll know that some players can play a full 90 minutes, never tiring out no matter how many times they sprint up the pitch. Others play a more specialized role, coming off the bench as substitutions. While they might not start every match, these “super subs” give their teams a jump — an offensive jolt or a defensive push — that’s critical to winning.

It’s the same for your company, where you have both full-time and part-time employees who slot into slightly different roles. Even though they might work odd or fewer hours for your company, part-time employees make important contributions to your team. The business wouldn’t be able to operate without them.

Just like “super subs” on a soccer team, part-time workers deserve opportunities to develop their professional skills, attend social outings, and take advantage of company discounts. And they’re also entitled to working benefits under the law.

Let’s dive into the benefits you can offer for part-time work.

Who is Considered a Part-Time Employee?

Not all part-time workers are the same, and depending on your industry or company needs, you may have a unique definition when it comes to your own workforce. A part-time worker is usually defined as someone who works fewer than 40 hours per week for a single employer, but this can vary depending on labor laws and federal agencies.

Here’s how different entities define part-timers:

• The Internal Revenue Service:Under the Affordable Care Act (ACA), the IRS considers part-time workers to be anyone who averages less than 30 hours per weekor 130 hours per month.
• The Bureau of Labor Statistics:The BLS classifies everyone working between one and 34 hours per weekas part-time employees in their data.
• Fair Labor Standards Act:For purposes of calculating overtime,  the FLSA states that any nonexempt employee who works more than 40 hours per weekis entitled to overtime pay.

Part-Time vs. Full-Time Employees

Your own organization ultimately decides the difference between part-time and full-time workers. You decide the specific number of hours that constitutes a full-time position, as well as the benefits you’ll offer outside of the mandatory requirements.

You might set the threshold for a full-time job at 40 hours per week, or 140 hours per month. It’s completely up to you and what works best for your company operations, as long as you comply with labor laws and employee benefitsregulations.

Why Should You Include Perks For Part-Time Jobs?

There are many advantages to offering fringe benefitsfor part-time workers, and these perks can help you attract, engage, and retain this valuable talent pool. Here are a few key advantages of benefits for part-time employees:

1. Increased employee engagement.People working part-time jobs are often happy with their roles in your organization and choose these jobs because of the flexible schedules. They don’t have a lot of free time to dedicate, but offering benefits for part-time workers can help keep them engaged and motivated, which can help bolster engagement levels throughout your entire team.
2. Improved retention rates.Benefits are often a key factor in an employee’s choice to stay with or leave a company. By offering benefits for part-time workers, you may be able to reduce your turnover rates and keep the talent you need to succeed.
3. Access to benefits for part-time employees can lead to better wellness outcomes.Offering benefits like health insurance, gym memberships, or yoga classes can help your team stay healthy and focused on their work, which benefits both them and your company.

What Are the Mandatory Benefits for Part-Time Work?

You don’t have to offer the same benefits package to people in part-time positions. However, they’re entitled to participate in some standard benefits under the law, and your company must pay into them.

Unemployment Insurance

You must pay into unemployment benefitsthrough payroll tax deductions, which benefit your part-time workers if they’re laid off without cause or have a work injury.

Workers’ Compensation Insurance

If one of your part-time workers gets injured on the job, you must provide them with benefits to help cover medical expenses and lost wages. Workers’ compensationensures that all employees are covered in the event of an accident.

Family and Medical Leave

The Family and Medical Leave Act (FMLA) requires companies with 50 or more workers to give eligible workers up to 12 weeks of unpaid leaveeach year for personal or family medical reasons. This benefits part-time employees who may need time off for a family emergency, parental leave, or other major life events.

Overtime Pay

Part-time workers are usually considered nonexempt employees, making them eligible for overtime pay when they work more than 40 hours. This extra pay is an added benefit of part-time employment and can help your employees feel more financially secure.

Retirement Savings

Any employee who works at least 1,000 hours in a given year is eligible to participate in your company’s retirement savings plan, just like any full-time worker, according to the Employee Retirement Income Security Act.

Sick Leave

In some states, you’re required to offer part-time workers sick leave in case they’re ill and can’t come in to work. In New Jersey, for example, companies of all sizes must provide part-time employees with up to 40 hours of earned sick leaveper year.

What Other Benefits Can You Offer for Part-Time Workers?

There are many other advantages you can extend to part-time employees, and you can offer them the chance to participate at a discounted rate. Some other perks you can offer include:

• Participation in your healthcare policies:  This can include health benefits, dental benefits, vision benefits, and more.
• Professional development opportunities: Part-time workers often have other commitments outside of work, such as family or school. Offering professional development programs or tuition reimbursement can help them grow their skills while still balancing their personal lives.
• Social benefits: Part-time employees often feel disconnected from the rest of the team, and benefits like company outings or holiday parties can help them build relationships with their colleagues.
• Discounts and perks: Many companies offer benefits to part-time workers that extend beyond traditional benefits packages. For example, you might give them access to gym memberships at a reduced rate, or offer discounts on products and services that your company partners with.

Overall, offering benefits to part-time employees can help you build a more inclusive workplace that benefits both your company and your employees. By focusing on wellness benefits like health insurance, professional development programs, and social events, you can help your team stay happy, productive, and focused on their work.

Every Employee Can Benefit From Wellness Incentives

It can be easy to overlook benefits for part-time employees, especially if you have a large and diverse workforce. But every employee can benefit from a wellness program, no matter how many hours they work or what their job title is. Staying active, overcoming financial challenges, and finding ways to de-stress are activities that help every employee shine their brightest inside and outside of work.

Talk to a wellbeing specialisttoday to learn how you can improve your benefits for part-time workers. With access to dozens of gyms and health apps, Wellhub helps every employee fit in wellness activities around their busy schedules.

References

• Identifying Full-time Employees. Internal Revenue Service. Retrieved December 14, 2022 from https://www.irs.gov/affordable-care-act/employers/identifying-full-time-employees 
• Labor Force Statistics from the Current Population Survey. U.S. Labor Bureau and Statistics. Retrieved December 14, 2022 from https://www.bls.gov/cps/cpsaat20.htm 
• Overtime Pay. U.S. Department of Labor. Retrieved December 14, 2022 from https://www.dol.gov/general/topic/wages/overtimepay 
• Kagan, Julia. (December 8, 2022.) Unemployment Insurance (UI): How It Works, Requirements, and Funding. Investopedia. Retrieved December 14, 2022 from https://www.investopedia.com/terms/u/unemployment-insurance.asp
• What is Workers’ Compensation? New York State. Retrieved December 14, 2022 from http://www.wcb.ny.gov/content/main/Workers/what-is-workers-compensation.jsp
• Family and Medical Leave Act. U.S. Department of Labor. Retrieved December 14, 2022 from https://www.dol.gov/agencies/whd/fmla
• Are we legally required to offer benefits to part-time employees? Society for Human Resources Management. Retrieved December 14, 2022 from https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/partimebenefits.aspx
• Earned Sick Leave Is the Law in New Jersey. NJ.gov. Retrieved December 14, 2022 from https://www.nj.gov/labor/worker-protections/earnedsick/law.shtml