Business structure is the foundation that tells what kind of operations that would be run by the business and this determines it’s growth potential.
For years, many companies and businesses have avoided requiring their workers to operate remotely, thinking certain functions could not be converted into a remote model.
When the now-infamous COVID-19 coronavirus struck, however, everybody got a major wake-up call about what could be.
Seemingly overnight, thousands of staff have switched from on-site jobs to remote full-time workers, posing a new question: exactly what do we expect from our workforce? Today, concerns are being posed not only about the remote and in-office employees, but also about part-time and full-time jobs.
Today, questions are being posed not only about the remote and in-office employees, but also about part-time and full-time jobs.
After all, several positions that were supposed to need an in-office presence are not, so maybe some of the old distinctions between part-time and full-time need to be re-evaluated too.
This is especially important for small companies struggling to attract and retain talent.
If you’re getting ready to hire new workers while keeping your bottom line in check, you’d do well to consider which positions a full-time employee needs and which jobs could better be filled as part-time jobs.
Here’s what you need to know about full time and part time jobs.
What are full-time vs part-time workers
Let’s continue with what a full-time or a part-time employee constitutes.
There is some leeway from business to business on this, but part-time workers are generally workers who work less than 30 hours a week while full-time employees work more than 30 hours a week, usually between 35 and 50 hours a week.
As per the U.S. Department of Labor, “The Fair Labor Standards Act (FLSA) does not specify full-time or part-time employment; this is a matter for the employer in general to decide.”
Advantages of hiring a full-time worker
Full time workers in many sectors are the norm. Some of the advantages of hiring full-time workers are ease in arranging meetings, loyalty perception and more hours of work per worker.
Facility of scheduling: It will be easier to arrange meetings if you know that all of the employees work exactly the same hours. Of, that might not be the case if you have full-time workers who are remote or in various time zones.
Loyalty perception: Employers also see full-time workers as being more loyal to the business, and less likely to be employed than contractors or part-time employees. Though in fact this may or may not be accurate, perception persists.
More work hours per person (i.e. fewer workers): Flexibility and ease are the primary reason people recruit full-time employees. Growing work requires a fixed number of hours to complete, and many employers would prefer to hire one full-time employee rather than two part-time individuals.
Disadvantages of hiring a full-time worker
The simple response is that hiring full-time staff is onerous. Through default a single full-time worker costs more than a single part-time worker.
And if you do not provide the full-time workplace benefits (which many businesses are forced to do by regulation to further raise the costs), it costs more than 20 hours a week for 40 hours.
Additionally, when you have to pay somebody’s time for 40 hours a week, you will have to settle for a slightly less experienced full-time worker, as opposed to a more experienced part-time worker (and more expensive per hour, but still cheaper overall).
Advantages of hiring part-time employees
The value of hiring part-time staff is double. First, charging for less hours of work is less costly, so for those living close to the balance sheet a lean but productive workforce is key.
Second, overall charging for less hours of work will make recruiting more skilled professionals competitive.
Although recruiting staff for less time can seem wasteful, this isn’t always the case.
Many reports suggest that workers spend a significant amount of time not working while being paid at work.
If you set realistic goals for your part-time workers, you might be shocked at what one effective part-time employee can achieve.
Another big advantage of hiring a part-time employee is that it will allow you to get a higher-caliber professional than your small company would be able to afford at full time.
For example, if you can only afford to spend $35,000 a year on a salary for a new social media marketer and want a full-time job, you’ll have to recruit someone with very little experience.
Nevertheless, if you take the same $35,000 and use it to employ someone highly skilled for part-time hours, they can achieve more in 10 or 15 hours a week than a new college graduate would accomplish in 40 hours or more.
Further clock time isn’t necessarily equal to more production.
Disadvantages of hiring part-time employees
You can’t have part-time workers 40 hours a week, they can or may not have compensation from you, and they may have other clients paying for them.
Many of these reasons, some employers fear that, if waters get hard, part-time employees are more likely to jump ship.
These are seen as less reliant on sales than full-time employees whose salaries (and sometimes health care and retirement accounts) are tied to their employment.
Nevertheless, several businesses offer part-time staff insurance, which may alleviate this problem (although it may raise costs).
Furthermore, scheduling part-time employees on their own or alongside full-time employees can be a logistical challenge for organizations that are not yet adept at flexible scheduling.
Departments of Human Resources may be reluctant to add a new type of worker to their management routines, and managers may struggle to adapt to having employees not available throughout the day but only during certain shifts.
What does Job sharing mean?
The separation of one full-time job into two part-time jobs is job sharing.
Work sharing may be helpful for small companies that are in the early stages of growth or have trouble recruiting excellent full-time employees.
Many highly qualified professionals are available only for part-time hours, such as certain parents, people with disabilities and people who seek greater work-life balance or follow certain part-time goals, such as higher education or starting a business.
As per the U.S. Department of Labor, “The advantages of work sharing are said to include improved morale and efficiency.
Work sharing may also be an effective way of hiring new workers and maintaining current ones.
However, in order for a job sharing arrangement to be productive, both people must be able to perform the job as effectively as one person.”
Which structure is best for your business?
The short answer is, it’s up to your business. If you’re not sure how many hours a job takes to complete a week, you could be better off beginning with temporary or part-time workers because they work fewer hours and cost less money.
When you have an understanding of the production for your company’s part-time jobs, it would be easier to see if you just need someone for 40 hours or more a week.
Many business owners believe that recruiting full-time employees means paying for costly benefits such as health insurance, but this is valid only for companies with 50 or more staff.
Unless your company is smaller than that, you have no legal duty to give all of your workers health benefits, irrespective of the hours they work.