There is no question that full-time employees should get benefits. However, part-time employees are often excluded from benefits, including basic ones like health insurance. However, offering health insurance benefits to part-time employees offers a lot of benefits for both small and large companies.
Are You Required To Offer Benefits?
Legally speaking, you are not required to offer benefits to part-time employees. These are employees who work less than 34 hours per week, according to the US Bureau of Labor Statistics. The Fair Labor Standards Act (FLSA) does not require benefits for part-time employees. Thus, employers get to decide whether they will offer any benefits, and which benefits to provide to part-time employees. While offering health benefits to part-time employees entails additional costs, companies have a lot to gain from offering health insurance to part-time employees.
Benefits Of Offering Health Insurance To Part-Time Employees
Attract Top Talent
Whether it’s a full-time employee or a part-time employee, you surely want to hire the best people. The best way to attract top talent and actually get them to stick is with health benefits. Since it is not required by law, health benefits are a generous perk for part-time employees. You will definitely reap the benefits in the form of better performance and higher revenues with talented employees on your side.
Reduce Turn-over Rates And Recruitment Costs
Paycheck may be the main reason people work, but employees nowadays require more than money. Employees nowadays prefer jobs that allow them to have fulfilled lives outside of work. That includes living healthy lives. So, if your part-time employees feel that they are able to live full lives while working with you, they are less likely to consider other positions, even full-time offers. With lower turn-over rates, you benefit from employees’ experience and knowledge while saving on recruitment costs.
When your employees have the ability to take care of their health, they will be healthier in general. Even if they do get sick, they will be able to get the appropriate treatment immediately. This translates to less sick days and better performance.
Better Organizational Culture
Health benefits can significantly help lower your part-time employees’ stress levels. Whether it’s being able to take care of their health or not having to spend thousands of dollars on medical bills, less stress from their personal life will improve your employees’ performance and attitude at work.
Furthermore, health benefits are conducive to employees’ job satisfaction. If part-time employees feel that they are valued, contribute to the company meaningfully, and are able to meet their personal goals, they will have a positive attitude toward the company and their work.
Earn Additional Tax Benefits
Offering benefits to part-time employees does not have much delineation from full-time employee benefits. Health insurance expenses, including those you offer to part-time employees, are tax deductible. So, while you are investing on your part-time employees, you still save some money on your federal and state income taxes.
Visit National Insurance Partners Inc., to learn more about how employee health insurance can benefit your company.