Offering benefits for part-time employees

PTO, health insurance plans, and retirement options—these are some of the best employee benefits to attract top talent to your company. Typically, total benefits packages are saved for full-time workers. You aren’t obligated to reward part-time staff with full benefits, but that doesn’t mean you should overlook them.

Jobs with benefits motivate, engage, and retain good workers. This is why companies that depend on talented part-time employees often struggle to cultivate the same commitment they get from full-time workers. However, a few thoughtful benefits can encourage part-timers to stay with your company longer and positively impact your entire workplace.

In this guide, we’ll break down what part-time benefits you’re required to provide, explore optional perks to improve the employee experience, and offer practical tips to build a benefits package that works for you and your staff, no matter how many hours per month they clock in.  

What is a part-time employee?

In simple terms, part-time employment is when an employee works fewer hours than a full-time employee. The distinction between part-time and full-time employees can vary by company and jurisdiction.

The Fair Labor Standards Act (FLSA) doesn’t define full-time or part-time employment in the United States. However, the U.S. Bureau of Labor Statistics considers any employee who works 34 hours per week or less a part-timer. Employees who work at least 35 hours per week are classified as full-time employees. Conversely, the Internal Revenue Service sets the cutoff at 30 hours per week.

Part-time employees are often hired to fulfill specific needs or cover shifts that don’t require a full-time commitment. Additionally, experienced professionals approaching retirement may downsize responsibilities and hours, seeking a more flexible schedule without sacrificing essential benefits. The distinction is crucial for managing workforce planning, including compliance with labor laws and crafting attractive benefits packages that retain valuable part-time employees.

Common benefits for part-time employees

Employees want more than a paycheck, whether or not they’re working a part-time job. Meaningful employer-sponsored perks and nonmonetary benefits reflect a company culture that values its entire staff, showing workers they’re more than just a number on a payroll sheet. Although thoughtful benefits and employee rewards programs for part-time work might require a significant investment, emphasizing work-life balance and well-being can yield higher productivity, morale, and loyalty. 

In addition to required benefits, consider offering these perks to part-time employees:

Paid vacation time

All workers need time to rest and connect with family or friends, even if they work a part-time job, but worries about lost income can get in the way. Paid vacation allows part-time workers to return to their team refreshed and motivated. This boosts job satisfaction and supports a healthy work-life balance that benefits the entire organization. 

Personal days

Whether catching up on errands, managing mental health, or caring for a loved one, your staff have lives outside of work. You can show them you value their personal well-being as much as their professional productivity by providing paid time off for personal reasons. 

Paid sick leave

Health is unpredictable. Part-time employees shouldn’t have to choose between staying healthy and making money. Paid time off for sick leave protects your entire team, promoting a healthier and more resilient workforce.

Health insurance

Under the Affordable Care Act (ACA), any American business with 50 or more full-time employees must offer their full-time workers health insurance or face tax penalties.

Although you aren’t legally obligated to extend the same health coverage to part-time workers, medical benefits can be a powerful tool for attracting and retaining talent. Employer-sponsored health insurance significantly enhances your company’s appeal, especially if your health insurance plans cover dental and vision insurance and other forms of coverage, such as life insurance and disability insurance.

If you opt not to offer health insurance benefits for part-time work, consider cushioning the cost with higher salaries or wages so employees can get health insurance on their own. 

Health and wellness stipend

Gym memberships, fitness classes, and wellness apps might sound like unnecessary expenses, especially for small businesses with tight budgets. But investing in your employee’s health can have an enormous payoff. A health and wellness stipend encourages employees to stay active and manage stress, leading to improved productivity, fewer sick days, and a more positive workplace atmosphere.

Tuition reimbursement

Organizations can show a strong commitment to professional growth by providing tuition assistance and reimbursements for skill-boosting opportunities. Specialized courses, certifications, and degrees foster a culture of continuous learning and development, enhancing workers’ contributions to the organization. 

Telecommuting

Work-from-home setups provide flexibility that enhances job satisfaction, improves productivity, and allows employees to work in a personalized work environment. Short commutes and increased flexibility help part-time employees balance work with other responsibilities and lifestyle choices. 

Required benefits for part-time employees

Compared to full-timers, part-time employees aren’t legally entitled to the same benefits from their employer. But that doesn’t mean you’re off the hook. The employee benefits you must offer part-timers depend on several factors, including the size of your company and local, state, and federal regulations. 

Here are several benefits you may be required to offer your part-time employees in the U.S.:

1. Retirement plans

Under the Employee Retirement Income Security Act (ERISA), some companies are required to include part-time workers in qualified retirement plans offered to full-time workers. Determine if you’re required by law to provide a retirement plan to part-time employees so you can choose the best path forward. 

2. Unemployment benefits

Part-time employees are entitled to unemployment benefits based on the laws in the state where the business operates. Other factors that impact this benefit include wages earned, hours worked within the last year, and the circumstances surrounding an employee’s dismissal, such as quitting, being fired, or being laid off.

3. Overtime laws

According to the Fair Labor Standards Act, employers must pay nonexempt employees a minimum overtime rate of 1.5 times the worker’s regular rate for hours worked over 40 in a workweek. 

Advantages of offering benefits to part-time workers

Today’s workers want to feel like valued members of their organization. Employee benefits are a powerful way to recognize commitment and create a mutually beneficial relationship. Here’s how extending benefits to your entire workforce can benefit your business:

1. Attract standout job candidates

Benefits can attract part-time talent in any job market. Strong monetary and nonmonetary benefits reflect a dedication to inclusivity and fairness, distinguishing your organization from competitors who do the bare minimum for their part-timers. 

2. Foster employee loyalty

A generous benefits package will encourage employees to stick around through the company’s highs and lows. Benefits that support well-being and personal growth enhance your workers’ connection to your business. They cultivate a supportive work environment that encourages mutual respect and investment, contributing to everyone’s long-term success and stability.

3. Boost your brand

Today’s workers aren’t the only ones who expect fairness and inclusivity from businesses. Your customers do, too. A company culture that takes care of workers with impactful employer-sponsored benefits enhances your brand’s reputation. A commitment to fair treatment can differentiate your brand in the marketplace, attracting customers who value ethical and responsible business practices.

Outline the perfect benefit strategy with Oyster

No matter where your part-time employees are located, Oyster’s global employment platform can help you offer them comprehensive benefits. Oyster lets growing companies reward valued international team members while complying with local labor laws.

Nebulous regulations and benchmarks for part-time benefits might sound daunting at first. But this flexibility presents an exciting opportunity to set your company apart. Oyster’s Total Rewards program is designed to help you implement strategic perks that attract top global talent, improve retention, and unlock the full potential of your part-time workforce.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.