Current unemployment rate is steadily at 5.1%. These numbers may seem appealing to economist and job marketers but most of new employment oppurtunities come from part-time employment. More and more businesses seek the luxury of part-time employment. Of course fewer hours Is the most favorable attribute but there’s more part-time benefits that managers find favorable.
Most companies offer a variety of benefits and compensation in order to retain a talented workforce. Benefits include.
- Opt in health care options
- 401 k (Very few companies still offer this)
- Life and Disability insurance
- Tuition Reimbursement
- Vacation time
Most of these benefits are only offered to full-time employees. Part time employees may have access to some of these benefits depending on which company you’re employed by, but part-time amenities are rare.
The less hours you work the less companies have to pay in labor, which is a major concern for most companies. Yet, not only does this cut down on overall wage hours, but having more part-time employees means you can employ workers “as needed”. Unproductive time makes up for about 20% of all hours worked. Unproductive time includes all the time you’ve spent on the clock not working. Obvious examples include
- Taking a break while on the clock
- Standing around
- Bathroom breaks
- Horsing around which contributes to employee negligence
There are many more examples of employee thief of time but these are just a few.
Disadvantages of Part-time employment
High employee turnover
Companies hate employee turnovers because it results in the loss of productivity and increased training time, not including the time it takes to find new employees. If part-time employee turnover gets too high you can be sure full-time employment will also because it causes more stress on full-time employees to compensate for the loss part-time employees. A good way companies can retain part-time employees is to offer them better pay or more benefits, which is what they want to avoid by hiring you as a part-time worker so don’t expect it if you’re not seeking full-time employment.
Part-time workers aren’t as dedicated to the company as full-time employees, which means they don’t work as hard. In today’s job markets part-time employees know they won’t get the common benefits and stable work hours as full-time wagers would.
Regardless of part-time and full-time status companies are going to incur a hefty expense for employing American workers. Common expenditures include
The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a Federal and a state unemployment tax.
The State Unemployment Tax Act (SUTA) describes state unemployment taxes imposed on employers. The majority of employers are responsible for paying federal and state unemployment taxes. Employers are responsible for paying an employee’s FUTA taxes under the Federal Unemployment Tax Act. Each state determines its SUTA tax rate. In most states, employers are responsible for paying state unemployment insurance taxes to fund their state unemployment insurance system.
And on the job expenses to cover possible litigation toward more dangerous job activities.
Does your job have more part-time or full-time employees? Leave a comment below.