Offering benefits for part-time employees

PTO, health insurance plans, and retirement options—these are some of the best employee benefits to attract top talent to your company. Typically, total benefits packages are saved for full-time workers. But considering that millions of people have worked part time for noneconomic reasons—21.4 million in 2016 alone—you aren't obligated to reward part-time staff with full benefits, but that doesn't mean you should overlook them.

Jobs with benefits motivate, engage, and retain good workers. This is why companies that depend on talented part-time employees often struggle to cultivate the same commitment they get from full-time workers. However, a few thoughtful benefits can encourage part-timers to stay with your company longer and positively impact your entire workplace.

In this guide, we'll break down what part-time benefits you're required to provide, explore optional perks to improve the employee experience, and offer practical tips to build a benefits package that works for you and your staff, no matter how many hours per month they clock in.

Looking to reward your global team? Offer salary, equity, and benefits confidently with Oyster.

What Is A Part-Time Employee?

A part-time employee is someone who works fewer than 35 hours per week, according to the U.S. Bureau of Labor Statistics, though the exact definition varies by company and jurisdiction. The distinction between part-time and full-time employees affects benefits eligibility and legal requirements.

Here's how different agencies define part-time work:

• Fair Labor Standards Act (FLSA): No official definition for part-time vs. full-time in the United States
• U.S. Bureau of Labor Statistics: 34 hours per week or less for part-time
• Internal Revenue Service: 30 hours per week cutoff for ACA purposes

Part-time employees are often hired to fulfill specific needs or cover shifts that don't require a full-time commitment. Additionally, experienced professionals approaching retirement may downsize responsibilities and hours, seeking a more flexible schedule without sacrificing essential benefits. The distinction is crucial for managing workforce planning, including compliance with labor laws and crafting attractive benefits packages that retain valuable part-time employees.

Required Benefits For Part-Time Employees

Compared to full-timers, part-time employees aren't legally entitled to the same benefits from their employer. But that doesn't mean you're off the hook. The employee benefits you must offer part-timers depend on several factors, including the size of your company and local, state, and federal regulations.

So what benefits are you actually required to provide? Here are the key legal requirements:

• Retirement plans: Under ERISA, some companies must include part-time workers in qualified retirement plans offered to full-time employees
• Unemployment benefits: Part-time employees qualify based on state laws, wages earned, and hours worked
• Overtime pay: The Fair Labor Standards Act requires pay at a rate of not less than time and one-half their regular pay for nonexempt employees working over 40 hours per week

Common Benefits For Part-Time Employees

Part-time employees want more than just a paycheck. Meaningful nonmonetary benefits show your entire staff they're valued. While employee rewards programs require investment, they boost productivity, morale, and loyalty.

In addition to required benefits, consider offering these perks to part-time employees:

Paid vacation time

All workers need time to rest and connect with family or friends, even if they work a part-time job, but worries about lost income can get in the way. Paid vacation allows part-time workers to return to their team refreshed and motivated. This boosts job satisfaction and supports a healthy work-life balance that benefits the entire organization.

Personal days

Whether catching up on errands, managing mental health, or caring for a loved one, your staff have lives outside of work. You can show them you value their personal well-being as much as their professional productivity by providing paid time off for personal reasons.

Paid sick leave

Health is unpredictable. Part-time employees shouldn't have to choose between staying healthy and making money. Paid time off for sick leave protects your entire team, promoting a healthier and more resilient workforce.

Health insurance

Under the Affordable Care Act (ACA), any American business with 50 or more full-time employees must offer their full-time workers health insurance or face tax penalties.

Although you aren't legally obligated to extend the same health coverage to part-time workers, medical benefits can be a powerful tool for attracting and retaining talent. Employer-sponsored health insurance significantly enhances your company's appeal, especially if your health insurance plans cover dental and vision insurance and other forms of coverage, such as life insurance and disability insurance.

If you opt not to offer health insurance benefits for part-time work, consider cushioning the cost with higher salaries or wages so employees can get health insurance on their own.

Health and wellness stipend

Gym memberships, fitness classes, and wellness apps might sound like unnecessary expenses, especially for small businesses with tight budgets. But investing in your employee's health can have an enormous payoff. A health and wellness stipend encourages employees to stay active and manage stress, leading to improved productivity, fewer sick days, and a more positive workplace atmosphere.

Tuition reimbursement

Organizations can show a strong commitment to professional growth by providing tuition assistance and reimbursements for skill-boosting opportunities. Specialized courses, certifications, and degrees foster a culture of continuous learning and development, enhancing workers' contributions to the organization.

Telecommuting

Work-from-home setups provide flexibility that enhances job satisfaction, improves productivity, and allows employees to work in a personalized work environment. Short commutes and increased flexibility help part-time employees balance work with other responsibilities and lifestyle choices.

Advantages Of Offering Benefits To Part-Time Workers

Why should you invest in part-time employee benefits? Beyond being the right thing to do, it delivers real business value:

1. Attract standout job candidates

Benefits can attract part-time talent in any job market, which is especially important in competitive sectors where part-time workers are concentrated. For example, nearly half of voluntary part-time workers are employed in just three industries: retail, food services, and private educational services. Strong monetary and nonmonetary benefits reflect a dedication to inclusivity and fairness, distinguishing your organization from competitors who do the bare minimum for their part-timers.

2. Foster employee loyalty

A generous benefits package will encourage employees to stick around through the company's highs and lows. Benefits that support well-being and personal growth enhance your workers' connection to your business. They cultivate a supportive work environment that encourages mutual respect and investment, contributing to everyone's long-term success and stability.

3. Boost your brand

Today's workers aren't the only ones who expect fairness and inclusivity from businesses. Your customers do, too. A company culture that takes care of workers with impactful employer-sponsored benefits enhances your brand's reputation. A commitment to fair treatment can differentiate your brand in the marketplace, attracting customers who value ethical and responsible business practices.

Building A Strategic Benefits Package For Global Part-Time Teams

Offering benefits to part-time employees isn't just another budget line item—it's a strategic investment. You're building company culture, strengthening your brand, and setting up long-term success. The key? Balance legal requirements with competitive perks that align with your business goals.

As your team grows globally, this complexity multiplies. That's where having a partner to navigate local laws and market expectations becomes critical. If you're ready to design a benefits strategy that works for your entire team, you can start hiring globally with a platform that handles the details for you.

No matter where your part-time employees are located, Oyster's global employment platform can help you offer them comprehensive benefits. Oyster lets growing companies reward valued international team members while complying with local labor laws.

Nebulous regulations and benchmarks for part-time benefits might sound daunting at first. But this flexibility presents an exciting opportunity to set your company apart. Oyster's Total Rewards program is designed to help you implement strategic perks that attract top global talent, improve retention, and unlock the full potential of your part-time workforce.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.