Part-time Employee Benefits: Three Reasons to Extend Perks to Staff with Non-Standard Hours

Employers should consider implementing employee benefits for part-time staff to cater to the values of employees, engender employee loyalty, and address any pay gaps to ensure full workplace equality and talent retention. 

Offering employee benefits to part-time workers can be tricky: benefits requirements often depend on the labor laws of the countries you operate in as well as on the type of company you are.

In this article, Pacific Prime discusses the ins and outs of part-time employee benefits along with reasons why extending benefits to part-timers can be a great move. Plus, we’ll offer our best tips for making employee benefits a breeze.

Part-time Employees—Understanding the Numbers

According to the latest OECD data, part-time employment plays a significant role in the labor markets of countries around the world, comprising on average 16% to 25% of the proportion of workers within each country. 

Listed below are statistics associated with the proportion of part-time employees within the workforce of countries across specific countries: 

• Netherlands: 37%
• Switzerland: 27%
• Australia: 25%
• France: 14.2%
• Canada: Between 20-25%
• Germany: Between 20-25%
• United Kingdom: Between 20-25%

Source: OECD

The Reality of the Job for Non-Full-Time Employees

A SEEK Australia article outlined that most people working in part-time positions did so by choice. Key reasons for working part-time included needing the flexibility to balance duties at home (30%), allowing for study outside of work (16%), and parental commitments (13%). 

Unfortunately, the part-time sector still suffers from discrimination and negative perceptions in the workplace, with full-time colleagues and managers believing their part-time counterparts:

• Aren’t as readily available as full-time workers (47%)
• Lack commitment to their company (38%)
• Are a burden to their full-time colleagues because of their “absence” (36%)
• Aren’t working if they’re “not seen in the office” (35%)

This lack of value from the rest of the labor market has led to more than half (58%) of part-time workers believing that their positions were career limiting. In fact, part-time workers often experience gaps in total compensation that their full-time counterparts don’t. 

Some of this can stem from legislative minimum working requirements that part-time workers can fall short of being eligible for. Other reasons are simply because part-time employee benefits haven’t been offered in the past. 

The Rise of Part-time Roles in Professional Services

The global labor market is witnessing a significant increase in part-time employment, especially in the U.S. and the EU. Advances in technology, evolving work-life balance expectations, and changes in industry demands all contribute to making flexible work arrangements a growing norm.

Listed below are some key insights on the rise of part-time roles in professional roles in major regions of the world:

• International Growth in Part-Time Employment in the EU: In the European Union, the number of part-time workers has grown substantially, increasing from around 25.4 million in 2002 to approximately 35.4 million in recent years. 
• International Growth in Part-Time Employment in the United States: In the United States, part-time workers now make up about 17.1% of total employment, reflecting a steady shift towards more flexible work patterns.

Listed below are the contributing factors to this rise of part-time roles:

• Work-Life Balance: A growing number of professionals are prioritizing flexible schedules to better manage personal responsibilities alongside career demands.
• Technological Advancements: Innovations in communication and remote work technology have enabled employees to work effectively from virtually anywhere, disrupting traditional, rigid work schedules.
• Industry Shifts: In industries such as consulting and professional services, there is a clear move towards flexible working patterns to attract and retain top talent in a competitive market.

Why You Should Offer Part-Time Employees Benefits

The key reasons to offer employee benefits to your part-time staff are to appeal to the values of your part-time staff, engender employee loyalty, and address any pay gaps associated with the current job market. 

With industries seeing an increase in part-time positions, now would be a good time to reward your part-time employees with employee benefits. Of course, doing so will largely depend on your budget, goals, values, and the type of work your non-full-time staff carry out for your business. 

Regardless of these considerations, here are some reasons you might want to consider extending part-time employee benefits out to those workers.

1. Workers Value Benefits and Perks

Recent insights reveal that U.S. employees continue to prioritize enhanced benefit packages over straightforward pay raises. A Glassdoor survey from 2023 shows that nearly 80% of workers would opt for additional or improved benefits rather than a direct pay increase. 

This trend underscores the growing importance of comprehensive benefits in today’s labor market, as employees look for long-term financial security and support beyond their base salaries.

Key findings from the updated survey include:

Health Insurance

• Approximately 40% of respondents identified health insurance as the most crucial benefit.
• This benefit is particularly valuable for employees with families, as it helps reduce out-of-pocket medical expenses and provides peace of mind during health emergencies.
• Enhanced health coverage can be a decisive factor for part-time workers seeking parity with full-time colleagues.

Paid Time Off

• Around 37% of employees ranked paid time off as essential.
• Generous leave policies not only support work-life balance but also contribute to higher overall job satisfaction and mental well-being.

Performance Bonuses

• About 35% of participants valued performance-based bonuses as a significant benefit.
• Such bonuses are seen as incentives that can boost productivity and provide additional financial rewards without permanently increasing base payroll costs.

Gender Differences in Benefits Preferences

• The survey indicates that 82% of women prefer enhancements in benefits over pay increases, compared with 76% of men.
• This disparity suggests that women, who often shoulder a larger share of family and caregiving responsibilities, place a higher value on benefits that offer long-term security and support.

2. Benefits Engender Employee Loyalty

The definition of workplace loyalty is quickly becoming transactional. Millennials, in particular, carry a mentality of you pay me for X, I do X, and the completion of that role is a demonstration of loyalty. As such, this new generation is more likely to have changed jobs in the past 12 months.

In Canada, only 54% of millennials held full-time positions. Some of those who had chosen part-time roles did so to continue enjoying leisure and travel activities in their off-work time; however, many found the minimal access to health benefits or sick leave restrictive. 

Offering part-time employee benefits could be seen by some employers as an opportunity to keep hard-working young part-timers looking for a role to work hard at, whilst having the flexibility to play hard.

3. Addressing the Gender Pay Gap

Women earning less than men in the workplace is a longstanding issue. Starting this year, the UK has made it compulsory for employers with more than 250 staff to report their gender pay gap. 

Because most part-time workers are women and part-time staff often receive less in hourly wages than their full-time counterparts, any move to open access and increase compensation would improve gender pay gaps.

Opening senior and leadership roles to part-time or time-sharing arrangements can also help, with female representation in top management adding USD 42 million in firm value to Standard & Poor’s composite 1,500 list. 

What You Should Know About Offering Part-Time Employee Benefits

When offering benefits to part-time employees, it’s vital to consider two main points: First, check whether their work arrangements meet local legal requirements for benefit eligibility. Second, evaluate how benefits and wellness program providers treat part-timers versus full-timers.

For global companies, legal obligations vary by country. For example, in Dubai, all workers must have health insurance per local regulations, while in the United States, the ACA and FLSA dictate benefit eligibility. Navigating these differences requires careful review of local laws.

When it comes to cost, part-time employees typically receive the same benefits as full-time staff. Even if they work fewer hours, companies often decide to value their contributions equally, meaning there are no discounts for reduced work schedules.

How to Know if You Should Give Part-Time Employee Benefits

Your decision to grant perks to your part-time staff will be one you’ll need to make yourself, but having an experienced employee benefits broker can help you do so with confidence. Our consultants and advisors can provide you with the best analysis of your benefit options in the market.

Pacific Prime has an unparalleled market advantage as we work with a range of industries, with groups as small as startups to multinational professional service firms. We have a presence in most major expat locations and are partnered with many of the biggest insurance players in the market.

If your desire is to stay competitive in the market whilst ensuring your employee benefits plan remains sustainable, Pacific Prime is the insurance partner you want in your corner. Contact our team to arrange a meeting, or visit our website to learn more about how we simplify insurance.

Frequently Asked Questions

Why should companies extend benefits to part-time employees?

Offering benefits to part-time staff boosts job satisfaction, loyalty, and fairness. Employees value perks like health insurance, paid time off, and performance bonuses over direct pay raises, which helps close pay gaps and attract top talent.

What legal considerations should companies keep in mind?

Legal requirements vary by region. Companies must ensure that part-time work arrangements meet local laws for benefit eligibility. For instance, US regulations (ACA, FLSA) differ from mandates in places like Dubai, where health insurance is compulsory.

How do part-time benefits impact retention and workplace equality?

Providing benefits to part-time workers promotes equality by reducing compensation gaps and supporting diverse needs. This approach fosters loyalty, reduces turnover, and creates a fair work culture that values every employee.