Part-Time Employee Benefits: 10 Ideas to Increase Retention
There are 26 million part-time employees in the United States. These workers are an important part of the workforce, and companies everywhere are asking important questions about what part-time employee benefits they should be offering.
What is a Part-Time Employee (PTE)?
Defining a PTE is quite tricky, and it varies from state to state and even between certain states and the federal government. For example, the Affordable Care Act defines anyone working 32 hours as a full-time employee, which is important when knowing when you are legally obligated to offer health insurance. On the other hand, some states may define a PTE as anyone working hours higher or lower than this number.
An easy rule of thumb is to define a PTE as an employee who works fewer than 30 hours per week. But it is always important for companies to understand their state’s particular guidelines and be familiar with any applicable federal laws, such the Fair Labor Standards Act, when making decisions about offering benefits.
Why Should You Offer Part-Time Benefits?
PTEs, like full-time employees (FTE), share many of the same motivations when choosing to work or stay at a particular company. Part-time employee benefits, therefore, are a powerful tool that companies can use to attract, hire, and retain quality part-time employees. In some cases, companies may not be legally required to provide certain benefits, but companies should still carefully evaluate whether offering these benefits may work to their advantage when sourcing talent and increasing retention.
Top 10 PTE Benefits
Here are our top 10 benefits that companies should consider offering to PTEs. Please note: some of these benefits may be required by law for your company’s particular situation. Others may not be required but will definitely sweeten any benefits package for part-timers.
- Health Insurance
One of the most desired benefits for PTEs is health insurance. There are a wide variety of health insurance providers that offer affordable plans specifically designed for part-time workers. Some of these plans even make it affordable for a PTE to add his or her dependents to the plan as well.
- Dental and Vision Coverage
Dental and vision coverage are often a highly sought after benefit, even for some FTEs. Like health insurance, today there are many insurance partners that offer optional dental and vision coverage for part-time staff.
- Student Loan Repayment Assistance
Student loan repayment assistance programs are quickly growing in popularity for companies across the United States as a means of increasing retention. These programs allow for companies to make tax-free payments toward employee student loan balances. They are a great addition to any benefits package and will make any company much more appealing to part-time personnel.
- Prescription Benefits
Prescription drug coverage benefits are also a great supplemental healthcare benefit that can easily be implemented for part-time employees. These plans offer an easy and affordable way to access both brand and generic drugs at affordable prices.
- Disability Insurance
Disability insurance is also a popular benefit that can help protect part-time workers’ incomes in the event that they should become disabled. These plans are often very affordable and add an extra layer of peace of mind for your staff.
- Earned Wage Programs
Easy-to-implement and often free for employers — earned wage programs (such as Tapcheck) are a great way to give PTEs immediate access to the wages they earn after working a shift. These programs allow an employee to log in to a mobile app, view their funds balance, and then immediately transfer these funds to their bank account for a small fee.
- 401k Retirement Benefits
By offering a 401k plan as an employee benefit, companies allow their people to start planning for their lives after working. Employers can also offer customizations to retirement plans, such as 401k matches that encourage workers to invest in their futures and may increase retention.
- Flexible Spending Accounts
A Flexible Spending Account (FSA) allows staff to allocate a portion of their paycheck tax-free to a spending account. This account can then be used on qualifying medical and personal products. It’s a great way to save some extra money on many essential health purchases.
- Paid Time Off Accrual
PTE benefits can also include paid-time-off accrual. Even though part-time employees may work fewer hours, they still need vacations like everyone else. Offering paid time off will help workers feel valued and get some much-needed rest and relaxation, in addition to increasing retention.
- Discounted Product and Services
If a company sells goods or services that can benefit its employees, it should consider doing discount programs for all employees—both full-time and part-time. There are also great programs available that let companies partner with other local businesses to offer discounts to employees at local restaurants, service providers, entertainment venues, and more.
Increasing Retention Through Part-Time Employee Benefits
Providing part-timers with robust benefits packages can help to increase retention and develop a positive and rewarding workplace for all employees. As your company looks ahead to what your benefits packages will be in 2022, it’s important to evaluate both your full-time and part-time benefits packages to ensure that they are truly meeting the needs of your people. Part-time employees are a vital part of the workforce that is often overlooked. As a result, your company has a real opportunity to shine by offering a package that attracts and retains high-quality part-time labor.