- What are some factors that Alan should consider when determining whether or not to offer benefits to part-time workers?
Employees are the single, most essential assets in any organization. Not only do they help in making productions that increase profitability, but they also safeguard companies against competitors. Employees must also work to the best of their capability to facilitate success. However, it is difficult for employees, full-time or part-time, to perform effectively without adequate compensation.
Alan must consider that the current world is in constant competition for talent and skill. In most instances, part-time workers ask for fewer working hours to further their education or to spend more time with family members. Most of these workers offer significant profits to organizations. Therefore, the CPA firm must provide benefits to part-time employees to avoid losing talent and skill. Moreover, these benefits would entice employees, thus moving them away from competitors.
Offering benefits to all employees also minimizes an organization’s turnover rates (Pratt, 2013). An organization whose employees are constantly changing finds it difficult to progress and establish lasting plans. Additionally, an organization that lacks appealing benefits would inadvertently have few veteran employees who are loyal and skilled. Further, incentivizing employees by using benefits reduces the risk of transferring the organization’s information to competitors. Alan should also strive to offer part-time employees benefit packages that are above the bare minimum to ensure employee cooperation and morale (Pratt, 2013).
Since Alan’s job also necessitates recruits’ employment, generous benefit plans for both full-time and part-time employees would ensure numerous job applications. Regardless of the type of employee (part-time or full-time), offering health benefits provides healthy and fit workers (Pratt, 2013). All employees would be more willing to work in an environment that cares for their well-being. Although employee benefits are an expense to firms, most organizations that offer these incentives have a dedicated workforce and profit.
- Discuss any laws and legal issues related to the benefits program for part-time employees.
The U.S. Department of Labor enforces numerous laws that ensure the safety and equality of employees. The Department contains laws like the Employee Retirement Income Security Act (ERISA) to regulate the pension or welfare benefits offered by different firms (SHRM, 2020). According to the Department of Labor, part-time employees work for a minimum of thirty hours a week (SHRM, 2020). For these employees to be eligible for any retirement plan, they must complete 1000 hours of work in twelve months at an organization. These terms are also applicable to full-time workers. Moreover, the Employee Benefits Security Administration ensures that all employees and retirees covered by any private retirement plan understand their benefits and compensation limits.
Additionally, all employees must offer health insurance benefits to employees who work for a minimum of 130 hours per month (SHRM, 2020). The Affordable Care Act (ACA) and the Patient Protection Act enforce these laws. All organizations that fail to adhere to this rule face penalties and constant healthcare assessments. Also, these organizations would suffer from withdrawn employees and even lose investor trust. Most States also necessitate a paid sick leave for all employees, especially Federal contractors. SHRM (2020), therefore, contends that Executive order 13706 requires that employers provide paid sick leave for full and part-time workers. Moreover, the Health Insurance Portability and Accountability Act (HIPAA) ensure that employees, part-time and full-time, are not discriminated against because of their health status. Therefore, HIPAA and the ACA, push both private and public companies into offering health benefits for their workers.
- Do you think the firm should offer benefits to part-time workers? If yes, should they offer paid time-off, the 401(k) plan and health insurance? Or only one or two of the benefits? Explain your recommendation.
Before making any permanent decision, Alan must first consider the statistics in his geographical area. According to the case study, 90% of businesses in the local geographic area where the CPA firm is situated offer time-off benefits to part-time employees. Forty percent of these businesses provide health care insurance, while 15% offer retirement benefits. Similarly, CPA firms in the area offer part-time benefits to their workers. Ninety-five percent of the firms have time-off benefits, Seventy-five percent offer health insurance covers, while sixty-seven percent offer retirement benefits.
Statistics of businesses and CPA firms surrounding Alan’s firm are imperative in explaining the essential nature of part-time employment benefits. If Alan’s firm decides not to offer benefits of offer minimum benefits, the growing number of part-time employees would rapidly dwindle. These employees would feel more enticed to join other nearby firms as they offer appealing benefits. Therefore, Alan must include attractive benefits for the firm’s part-time workers.
Lang (2017) avers that before choosing the type of benefit to offer, an organization must first analyze their employee demographics and gender. For instance, if an organization has older employees, then the 401 (k) plan and health insurance are more suitable. Moreover, insurance prices for an older workforce are higher as compared to young employees (Lang, 2017). Also, gender is essential as premiums for women tend to surpass those of men. Alan must also consider the medical expenses of all employees with chronic diseases. To reduce the cost of these drugs in health insurance, Alan must encourage wellness programs that embrace healthy diets and exercise.
After considering all these factors, and adding to the fact that the firm has a tight budget due to recruitment, Alan must first select two types of benefits to offer to part-time workers. Health care insurance is imperative and at a fixed cost for all employees. If the majority of these workers are young, then the second benefit must be a paid off-time package to increasing working incentives. The firm should also strive to improve these benefits later on when they have fewer budget constraints to offset competition.
References
Lang, D. (2017). 5 Factors That Might Influence the Cost of Your Employee Benefits Package. Jungo HR. https://www.jungohr.ca/blog/5-factors-that-might-influence-the-cost-of-your-employee-benefits-package
Pratt, M (2013). Top 5 Reasons to Offer Employee Benefits. Business. Org. https://www.business.org/finance/benefits/top-reasons-to-offer-employee-benefits/
SGRM (2020). Are we legally required to offer benefits to part-time employees? https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/partimebenefits.aspx