When you’re looking to hire employees for your business, you may think you’re required to offer everyone the same amount of hours, such as 9-5. However, there are a variety of different types of work you can offer employees depending on your needs. These can be full-time employment, part-time employment, seasonal employment, or temporary work.
Hiring employees outside of full-time work will depend on you and your company’s needs. For example, if you have a small business that does not require full-time marketing, you may choose to hire a part-time or temporary employee.
If you work for a business that gets busier around certain times of the year, such as the holidays, you may choose to hire a seasonal employee.
Key Takeaways:
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Because there is no legal definition as to what constitutes a full-time or part-time job, the employer must decide how to define these for their employees.
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Employees who work between 35 and 50 hours are generally considered full-time, and employees who work between 20 and 30 hours are generally considered part-time.
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Seasonal employment is also covered under the Fair Labor Standards Act, which states that employers are required to pay seasonal employees the federal minimum wage or their state or local minimum wage, whichever is higher.
Full-Time Employment
The Internal Revenue Service (IRS) provides the guideline that full-time employees must work at least 30 hours per week or 130 hours per month at their place of employment. These employees must make at least minimum wage for all hours worked up to 40 hours of work per week. Additional hours are expected to be paid out at one and a half times their hourly wage.
Full-time employment comes with many benefits. Some of these benefits depend on the individual employer, industry, or company size, but most offer these benefits to their full-time employees.
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Health insurance. Full-time employees are typically rewarded with health insurance from their employer. In fact, it’s one of the top reasons why employees seek full-time work. Employer’s health coverage helps employees with medical expenses by offering plans that offset out-of-pocket health care expenses.
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Paid time off. Paid time off or PTO is a benefit for employees looking to take time off work. This time is typically paid as regular wages to the employee, making it possible for them to enjoy their break from work. The Bureau of Labor Statistics reports that, on average, full-time hires have eight to ten days of PTO per year.
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Retirement plans. Some companies opt to offer their full-time employees retirement plans such as a 401(k). Many companies will even match or contribute a certain percentage to the monthly amount their employees deposit into their accounts.
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Maternity or paternity leave. Being a full-time employee allows new parents to take time off work following the birth or adoption of a child. This time period typically lasts between two to six weeks or more. These policies will differ based on the employer, but many pay full or partial salaries to their employees during this time.
Part-Time Employment
Part-time employment can be beneficial for both employer and employee. For employees who need more flexibility with their time, a part-time position may be ideal. For employers who may not have enough work for a full-time employee but still need an extra pair of hands, part-time employment allows them to find a financially feasible solution.
Because there is no legal definition as to what constitutes a part-time job, the employer must decide what this means. For example, someone who works 35 hours can be considered both a full-time or part-time employee, depending on the company. However, as a general rule, employees who work between 20 and 30 hours are generally considered part-time.
If your employee is not working full-time, however, that means you may not have to provide the benefits offered to full-time employees. But part-time work comes with its own perks, including:
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Better flexibility. A full-time job takes up most of your week. Full-time employees are more susceptible to burnout and extreme stress, causing health issues. By being a part-time employee, you can reduce your stress and have a better work/life balance with more hours off.
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New opportunities. Part-time hours give you the opportunity to pursue new experiences and training in different fields. For example, if you are going to school or want to take a class to build a skill. You can also consider working for more than one company at a time to develop deeper experience in a field of your choice.
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More money. Although this seems counter-intuitive, working part-time can absolutely mean more financial stability. You can make a combined income between two jobs which may mean you’re bringing home more than you may with a single, full-time job. You may even be surprised that you work fewer hours, too.
The most common question asked is whether or not part-time employees receive benefits from their employers. The answer is it’s up to the employer. Employers will determine whether they offer perks to both full-time and part-time employees, such as medical insurance, retirement plans, paid time off, or paternity or maternity leave.
Seasonal Employment
Seasonal employment is less common than both full-time and part-time employment, but it serves an important need. Some businesses may be open only at certain times of the year, such as businesses that operate at tourist locations such as beach hotels or ski resorts. It also serves businesses that may need more workers during peak periods, such as the holidays.
Seasonal employment is typically considered part-time work, though occasional full-time positions may be available. Depending on the business, the location, and the type of year, a seasonal job may only last for a few weeks or a few months. It typically does not include any year-round employment. Here are some benefits of seasonal employment:
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Better efficiency. Hiring seasonal employees helps businesses operate more efficiently. Seasonal workers are not required to stay on payroll during the slow times of the year, optimizing the company’s efficiency. Seasonal employees also do not typically receive benefits, which reduces the hiring cost for employers as well.
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Breaks for full-time employees. When hiring seasonal employees during busy times of the year, you can offer your full-time employees a break from their regular job while keeping the business running smoothly. This keeps their morale high and allows them to take a break and refresh for when they come back to work.
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Higher customer satisfaction. Preparing for the holiday or seasonal rushes is important in keeping your customers happy. By providing the right amount of service for your customers, you’ll keep your business running smoothly, handle any issues in a timely manner, and leave your customers feeling satisfied.
Seasonal employment is also covered under the Fair Labor Standards Act. This is the same act that covers minimum wage, overtime pay, and youth employment standards. Employers are required to pay seasonal employees the federal minimum wage or their state or local minimum wage, whichever is higher.
Temporary Employment
Temporary employment is what it sounds like — an employee works in a position for a short amount of time under contract terms. Companies may choose to hire a temporary employee before they offer them a longer-term position, whereas temporary employees may choose to work temporarily to find out more about a company or industry.
Temporary employment can exist in other forms as well, such as gigs. For those in creative fields like film and television, photography, design, or writing, temporary employment is normal. These gigs typically work on one-off projects where the creative worker fulfills a project-based need for their client, after which the employment relationship ends.
Hiring a temporary employee may seem like something only larger companies need, but they can be beneficial for companies of all sizes. Here are some reasons why you may want to look into hiring a temporary employee.
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Employee time off. Employees on your staff may face medical emergencies or need to take family leave. This leaves their position open for weeks or months. If your existing employees are already overworked, it’s a good idea to find a temporary hire to fill that position so the business keeps running smoothly.
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Short-term employment. Companies that only need employees for a short amount of time may look to hire temporary employees. This can include businesses like summer camps or beach lifeguarding where trained employees are needed, but only for a short amount of time.
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Short-term projects. Companies looking to embark on large projects, but may need more hands to complete them, may look into hiring temporary employees. For example, if a company is looking to do a marketing rebrand, it may choose to hire an outside consultant or designer to help for a short period of time.
If you’re an employer who still isn’t sure how to classify your employees, it’s a good idea to get familiar with ACA Compliance. These guidelines will help you determine whether your employees are full-time or part-time employees.
Full- Or Part-Time Or Seasonal Or Temp FAQ
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Do part-time employees receive benefits from their employers?
No, part-time employees don’t usually receive benefits from their employers. However, many big companies in the U.S. do offer part-time employees some benefits.
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Are seasonal and temporary employees the same thing?
No, seasonal and temporary employees are not the same thing. However, seasonal employment can be considered temporary work. But temporary work is not always considered seasonal employment.
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Can seasonal or temporary employees be hired as full-time or part-time employees?
Yes, seasonal or temporary employees can be hired as full-time or part-time employees once their contract is complete if the employer has a need and is happy with their performance.