The Pros & Cons of Hiring Full-Time or Part-Time Employees
You can usually tell if an employee is full-time or part-time based on the number of hours they put in each week and their weekly plan.
Full-time employees can give your company scheduling security, consistency in the flow of goods or services, and overall labour management consistency.
Because you won’t have to pay as much when there are dips in workflow, or provide healthcare and other perks, part-time employees can save your business money.
This article is for small-scale businesses owners who must hire staff and must choose between full-time and part-time workers.
It can be difficult for small business owners to decide whether to hire only full-time workers, part-time workers, or a mix of the two. While some firms want a more consistent and predictable workforce, others need more part-time workers to remain adaptable for changing needs.
It’s crucial to understand the benefits and drawbacks of each hiring option before making a decision. You can use this guide to decide whether to hire full-time or part-time workers.
Part-time vs. full-time employees
Many employers hire both part-time and full-time workers depending on the demands of their businesses. Despite the advantages and disadvantages of each employment option, the choice ultimately depends on the demands of your firm.
Technically, full-time or part-time jobs are not fully defined by federal laws or regulations.
Part-time workers typically put in fewer total hours than full-time workers. However, during a busy week or time of year, like the holidays, this can vary.
Part-time employees are workers who are hired to work fewer hours than full-time employees. They typically work less than 30 hours a week, though the definition can vary depending on the employer and the country.
Even though the majority of companies define full-time work as 40 hours per week, many still use 32 hours as the bare minimum. This is significant because it affects who is entitled to paid time off, paid vacations, retirement plans, and other benefits. Employees who work 40 hours per week typically accrue 2,080 hours in a year (40 hours per week multiplied by 52 weeks).
Pros and cons of hiring full-time and part-time employees
Hiring full-time personnel has benefits and drawbacks, and the same is true for part-time staff. Your decision will ultimately be driven by your personnel and general business needs.
Generally speaking, staffing levels are more variable with part-time workers who don’t have guaranteed hours or benefits, as opposed to full-time workers who anticipate a consistent schedule, a certain amount of hours each pay period, as well as holiday time and healthcare benefits.
The benefits and drawbacks of each employee are listed below.
Pros of hiring part-time employees
- Lower overhead costs: Employing part-timers is less expensive than hiring full-timers, who frequently demand greater salary and perks.
- Flexibility: Employing part-timers enables more adaptable staffing for changing scheduling requirements.
- Additional assistance: Having part-time employees makes it simpler to add staff when necessary (either week to week or seasonally).
- Cross-training: To cover shifts and projects as needed, you can develop experienced backup team members (and cross-trained team members).
- Balanced employees: In some circumstances, a part-time schedule enables your devoted team members to hold down additional employment, attend school, or take care of personal obligations. This explains why a sizable fraction of workers choose part-time employment.
Cons of hiring part-time employees
- Inconsistency: Employee retention can be challenging when scheduling is inconsistent, especially for those who require consistent hours.
- Potential inefficiency: Due to a lack of regular repetition, part-time workers who work occasionally may make more mistakes.
- Employment difficulties: When hiring part-time employees, you could run into problems with co-employment. It’s always possible that an employee views working for your organisation as a “side gig” rather than as their primary position. If an employee is double booked for a shift, for instance, they may need to choose which work takes precedence.
Pros of hiring full-time employees
- Better planning: You’ll have more stability in your schedule and be able to better anticipate your workload, projects, and goals.
- Cost savings: Employees who are qualified for benefits are more cost-effective for your business if you have a greater number of them. Large groups with many eligible employees typically result in lower healthcare benefit costs.
- Consistency: Employees will spend more time in their responsibilities and collaborating with other full-time team members, resulting in more consistent productivity.
- Employee loyalty: When workers remain with a company over time, they tend to feel more connected to the brand.
Cons of hiring full-time employees
- Overstaffing: Concerns about overstaffing include the possibility that full-timers won’t be economical when workloads decline and/or production and/or productivity decline.
- Employee stress: Full-time employees deal with higher deadline- and project-related stress. A 2021 study published in the Kansas Journal of Medicine found that there is a strong negative association between employee stress and productivity, which is why employers care about it in addition to caring about the health of their team members.
- Benefits-related costs: The cost of fringe benefits is substantial and increases as you add more full-time staff.
- Employers occasionally have to deal with attendance and performance problems brought on by employee burnout and a poor work-life balance.
Both full-time and part-time employment offer benefits and drawbacks. Full-time employees give more consistent staffing and assistance for your business needs, while part-time workers offer flexibility and the possibility for cost savings. So, the choice is yours to make based on your business needs and staffing requirements.