A comparison of part-time and full-time workers
Creating employee schedules requires strategizing when building your company's workforce. It is possible to hire employees who work part-time, full-time, or even a combination of the two, depending on your business's needs. Part-time vs. full-time workers receive a variety of benefits, so you should carefully consider the differences before deciding on your hiring strategy. It explains what full-time vs. part-time hiring strategies mean for your company and how to differentiate them.
Classification of part-time and full-time employees
There are very specific definitions for how many hours are considered full-time and part-time by the Bureau of Labor Statistics. Anyone who works more than 35 hours per week at a company is classified as a full-time employee, and anyone who works fewer than 35 hours per week is classified as a part-time employee. Part-time work and the number of hours that constitute full-time work are determined by the policies of each company. Depending on the company, some employees may qualify for full-time status for working as few as 32 hours per week, while others may qualify for part-time status for working 40 hours. A part-time employee is one who works 30 hours or less per week.
There are some key places in the law that describe the maximum number of hours part-time employees can work before they become eligible for full-time benefits.
What role does overtime exemption play in employment classification?
Employees' overtime and exemption status are directly related to their part-time or full-time working hours. In the study, employees are always salaried and don't have a legal right to overtime pay for hours worked beyond a standard workweek. If you want to exempt an employee from this policy, you must pay them at least $455 per week or $23,660 per year, regardless of how many hours they work.
It is technically possible to consider exempt employees to be either full-time or part-time workers, but most of them work full-time hours. The study provides time-and-a-half pay to employees who work over 40 hours in a week if they are not exempt. It does not matter what the employer defines as part-time versus full-time, these workers always receive overtime pay.
Part-time and full-time employees' insurance
In accordance with law, qualifying employers must offer health insurance to employees who meet the hourly average requirements, regardless of the number of hours the company considers full-time. As well as workers' compensation and unemployment insurance, many states require employers to offer workers' compensation and unemployment insurance to everyone on their payroll, no matter how part-time or full-time they work.
Part-time employees may also receive extra benefits that aren't mandated by law, even if there is a difference in benefits packages between part-time and full-time employees. As a result of this improvement in part-time compensation packages, your company may be able to retain more workers and attract qualified candidates who move to full-time work.
In addition to covering required insurance for full-time employees, some employers also offer other types of insurance and contributions, such as: Dental insurance, Life insurance, Pension plans etc.
Full-time vs. part-time employee benefits
There are some benefits that are governed by law, such as FMLA leave, and others that are left up to your discretion. In order to qualify for FMLA leave, employees must work more than 1,250 hours per year, an average of 24 hours per week, meaning many part-time employees are not eligible. In order to qualify for paid sick leave, individuals must work a minimum number of hours in their state.
There may also be other benefits included in your unique company policy, such as paid time offer and employee leave options. If you choose to offer these benefits exclusively to full-time employees or part-time employees as well, you may do so without affecting your part-time employees. A strong benefits package often proves essential to attracting full-time employees since most workers expect to receive extra benefits as a full-time employee.
The advantages and disadvantages of part-time employees vs. full-timers
It is important to consider your company's goals and priorities when choosing whether to hire a part-time or full-time employee.
A company that needs flexible shift-based schedules to respond to changing consumer demand or a business owner who needs limited support for a specific task is best suited to hire part-time employees. Companies that need dedicated and consistent employees, however, may be adversely affected by part-time workers. Part-time workers can also be a significant asset when used to fill skill gaps or as support staff for those working full-time hours.
When you require loyalty, hiring for full-time hours is a great choice since full-time employees typically commit to one workplace. The costs of maintaining full-time employees can be prohibitive for a growing company. Part-time employees tend to use their employment as a way to pay for school or support themselves while they work at entry-level full-time jobs in their chosen fields, while full-time employees are more likely to follow directions and put their whole heart into their jobs.