Staffing: Full- and Part-Time Employees
At some point in the development of your business, you will probably find it beneficial to hire your own employees. This is another critical legal milestone for the company, bringing with it many additional state and federal laws and regulations. It is also a time for strategic decision making concerning whether your needs are best met by part-time employees, full-time employees, or some combination of the two.
The Internal Revenue Code defines part-time employees as those who work 1,000 hours or less in any 12-month period.
- The Advantages of Part-Time Employees
Part-time employees can be an excellent staffing option for small or young businesses, due to the potential for flexibility and the relatively low cost. Such workers necessarily work fewer hours, so will cost less in wages. You may vary the number of hours an employee works based on the amount of work available. In addition, part-time employees typically do not qualify for company-sponsored benefits.
- The Disadvantages of Part-Time Employees
Part-time employees often hold more than one job, meaning possible competition for time and loyalty. In addition, such employees often leave if offered full-time employment by one of their other part-time employers, possibly creating a turnover problem. Keep in mind too, that part-time employees count for purposes of bringing an employer within the scope of state and federal employment laws.
Full-time employees are generally considered to be those scheduled to work 40 hours per week. However, employers have discretion in setting such hours.
- The Advantages of Full-Time Employees
Full-time employees are the most likely to develop company loyalty, and to feel a sense of ownership in the business. This can result in a committed, hardworking workforce, willing to go through any tough times the business may encounter. Full-timers also tend to hold only one job, giving you more control over their time and efforts. For many employers, full-time employees provide a sense of security that someone could manage things in their absence.
- The Disadvantages of Full-Time Employees
For some employers, the advantages of full-time employees are outweighed by the burdens involved in hiring and maintaining such a staff. If you choose to hire full-time employees, you will face the burden of payroll taxes. Depending on the number of employees on your payroll, you will be responsible for keeping on top of myriad complex and ever-changing state and federal laws and regulations. In addition, in order to attract and maintain strong employees, you may be required to offer such benefits as health insurance and paid vacation.
Copyright© 2000 Findlaw Inc.
These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between FindLaw, the author(s), or inc.com and you. Internet subscribers and online readers should not act upon this information without seeking professional counsel. The opinions expressed in the articles found in FindLaw's Library and inc.com's database are those of the author(s) and not those of FindLaw or inc.com.