Full-time vs. Part-time: What’s Best for Your Business?

When you’re running a business, it can be a tough call whether to staff your company with full-time folks, part-time people, or a mixture of both. There are definitely pros and cons to each type of employee. Full-timers can provide stability, while part-time workers offer flexibility—both equally important things to consider for your business. So, what’s best for you?

Full-time, Pros and Cons 

According to the IRS website, full-time employees work at least 30 hours per week, or 130 hours a month. Many employers, however, will say that providing 32-40 hours work/week is the standard amount for someone to be considered full-time.

Full-time folks offer the benefit of consistency – in scheduling, individual productivity, and cross-team collaboration. These workers also enjoy the sense of community that comes with being a full-time staff member; they’re more engaged with your company and feel as though they really have a voice.

In terms of downsides, one thing to consider when weighing your options is how overtime and benefits come in to play with full-time employees. Full-time employees are generally eligible for paid vacation time, holidays, 401k plans, etc. These are great options for employees and things jobseekers are looking for. But, if your business is not equipped to offer those types of perks, then hiring folks full-time might not be the most cost-effective route to embark upon.

There is also the matter of insurance benefits—specifically the Affordable Care Act (ACA), which has specific requirements for offering benefits to employees who work at least 30 hours/week. For more information on the ACA, visit Healthcare.gov.

Part-time, Pros and Cons

Part-time employees, typically defined as those working less than what your business considers full-time, are certainly less expensive in the near-term. There’s no need to consider salaries or health benefits (more on that later), plus you’re easily able to adjust these schedules based on business traffic and demand. And if you need more help one day, you can call in an extra shift. Part-time workers also enjoy flexibility themselves; they likely choose to be part-time because of other jobs, school commitments, or family obligations.

On the flip side, it can be tough to keep part-timers around when your scheduling practices are inconsistent—some folks might need steady hours because they work a second job or need to be home when school lets out, and part-time work is attractive to employers because it doesn’t demand consistency. On the flip side, it’s consistency that helps workers learn how to do their job well. Having a staff that works sporadically could lead to potential inefficiency.

We mentioned health benefits, and with that there is a potential catch… you may be required to provide medical insurance benefits to your part-time employees. There is an excellent piece regarding the legal implications of the ACA for part-time employees over at SHRM.org.

From hiring best practices to spotting employee fraud, the Financial Pantry covers everything you need to run a successful small business. We post content on a regular basis, so be sure to stop by and see what’s new! And if you’re in the market for a small business loan or line of credit, we’ve got your back. You can read all about our decades of financing experience on our website, ARF Financial!