Should You Give Part Time Workers A Piece Of The Benefits Pie?

With the current unemployment rate ranging from 8% to12%, and employers cutting costs as much as possible, part-time employment is being explored by individuals and companies alike.

More employers are looking at new and different business designs. Although benefits are becoming more important to employees, employers are underestimating their importance.

Benefits foster loyalty

Surveys show that seven in 10 employees say retirement benefits are a significant influence of loyalty, but only four in 10 employers realize this. The same split exists when respondents were asked about non health benefits such as life insurance, dental and disability.

Benefits can have an even greater impact on the loyalty of part-time workers because benefits generally are considered to be above and beyond what is expected from an employer.

Although it might seem counterintuitive to provide part-timers with benefits during a time when employers are looking to save money, such offerings may offer employers an advantage in gaining loyalty among part-time employees who generally are difficult to influence when it comes to loyalty.

Ultimately, whether or not an employer decides to offer benefits to part-time employees depends on a cost-benefit analysis. Employers have to consider how much money the company has to spend and what the goal is. Employers also have to ask, “What is the cost of turnover vs. the cost of attracting and retaining employees?”