Posts Tagged ‘Retirement Plan’

Benefits for Part-Time Employees

Thursday, May 12th, 2011

According to the U.S. employment statistics reported by the Bureau of Labor Statistics (BLS), there were 26,560,000 employees working part-time in February 2011.  Approximately 31 percent worked part-time because of economic reasons (unable to find a full-time job, full-time hours cut to part-time or seasonal declines in demand).  The remainder worked part-time out of choice or due to personal reasons such as child care, attending school, limits on social security earnings, etc. Women accounted for 62 percent of the part-time workers.

Because they are not as common for part-time employees as they are for full-time employees, benefits packages can be a huge recruitment and retention advantage for employers with part-time workers.  Although involuntary part-time employees will be moving on to full-time jobs as the economy improves, voluntary part-time employees are likely to seek out part-time jobs that offer the best benefits.

The latest data available from BLS regarding benefits for part-time employees was released in July 2010.  From that data, here’s the percentage of employers who provided specific benefits to part-timers (working 1-34 hours):

Retirement plan         39 percent

Paid vacation             37 percent

Health care                26 percent

Paid sick leave           24 percent

The CAI 2011/2012 Policies & Benefits Survey reports that roughly half of employers provide some benefits to part-time employees, with some on a pro-rata basis.  The majority require a minimum of 30 hours per week to qualify for benefits (although some only require 20).

Approximately 50 percent of employers (total responses) who provide part-time benefits provide 401(k), medical and dental insurance, life insurance, AD&D insurance and bereavement pay.  Sixty percent of non-union employers provide vacation and holiday pay.

Benefits provided may vary by size of employer.  For full data on the local provision of benefits to part-time employees and other benefits data, please see the CAI 2011/2012 Policies & Benefits Survey.

Photo source: Earls37a

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