The difference between part-time and full-time affects the job market for both employees and employers. Job seekers contemplate if a part-time or full-time engagement is right for them. Employers likewise contemplate the difference between a part-time or full-time hire. Essentially, on both sides of the spectrum, everyone asks, ‘what’s in it for me? How does this serve my goals and purpose? Why does the difference between part-time and full-time employees matter? And what side of the spectrum is better for me?
What is part-time and full-time employment
Part-time employment relates to any activity that involves less than the normal time commitment. Full-time on the other hand relates to any activity involving the full amount of time spent. Either way, both part-time and full-time employment are timeline adjectives used to describe work hours.
The Bureau of Labor Statistics has extremely strict definitions of what is the difference between part-time and full-time work. For example, the BLS considers everyone who works more than 35 hours per week at a company to be a full-time employee, whereas anyone who works less than 35 hours per week is a part-time employee. Each organization has its own rules regarding what constitutes part-time work and how many hours constitute full-time work. Some organizations, for example, consider 40 hours per week to be a full-time job, whilst others may grant such status to people working as few as 32 hours. Workers who work 30 hours or less per week, on the other hand, are usually called part-time.
However, a few crucial sections of the legislation specify the maximum number of hours part-time employees can work before they are legally entitled to full-time benefits. As a business owner, you should be familiar with the following acts:
- Affordable Care Act (ACA): Employees who work for a company that employs 50 or more people and work 30 hours per week or 130 hours per month are eligible to an affordable employer-sponsored health care plan, according to the ACA.
- The FLSA specifies that every nonexempt employee who works more than 40 hours per week works full-time hours and is entitled to overtime pay for any time worked in excess of 40 hours.
How did it start?
Ever wondered where the work hours came from? And how we even got to the difference between part-time and full-time? The history remains unclear since the nature of work kept evolving from prehistoric times till recent times. The industrial revolution brought with it a certain style of manual labor. People worked at factories and assembly lines for about 10-12 hours a day, sometimes more.
Henry Ford remains a notable name for bringing on the eight-hour workday. What is now called the nine-to-five or otherwise known as full-time employment. The eight-hour workday preserved the strength of workers so that they worked hard without breaking down so easily. The fair labor standards act in 1938 endorsed the nine-five to limit the exploitation of factory workers.
Now, while no one completely knows how part-time employment started, we know that it came as a result of societal evolution. The increasing number of people willing to work created the shift-duty system which meant working fewer hours. Additionally, the information age helped foster the proliferation of part-time employment. In recent times, fewer people engage in manual labor and just sit on couches, working on computers, or at a desk. The lack of an accurate metric for measuring workers’ output creates the difference between part-time and full-time employees.
Does the difference between part-time and full-time employment matter?
It matters to know the difference between part-time and full-time engagement since People prefer to make choices that better serve them. Government establishments and big corporations lean more towards hiring full-time employees. Of course hiring employees to work full-time means providing benefits like bonuses, health insurance, paid vacations, and so on for employers. Part-time gigs on the other hand provide employees with more time to either work more than one job or start a business.
The difference between the two matters knowing this will help you determine which best works for you. Would you like to spend 8 hours at a desk all your life or build your own business? Whatever the choice, knowing the difference between part-time and full-time employment will help you decide what’s best for you.
Understanding the difference between part-time and full-time employees
Understanding the difference between part-time and full-time employees is critical since it will aid in classifying these two categories of personnel. This distinction between part-time and full-time employees is significant because:
- Misclassifying employees as part-time or full-time can result in fines and penalties. If an employer misclassified an employee who is a full-time employee under the ACA as a part-time employee, the employer will be subject to benefit-related fines. Such penalties would have an impact on their profit and loss statement, with the prospect of their account payables exceeding or equaling their account receivables. For example, if an Applicable Large Employee (ALE) under ACA is required to provide benefits to a full-time employee but does not, the employer will be liable.
- Employers are classified as large or small. The Affordable Care Act- The number of part-time and full-time employees at a company determines whether it is classified as a Small Employer (SE) or an Applicable Large Employer (ALE) (ALE). Being classified as one of these two types of employers is significant since each has different obligations to their employees. If an employer has at least 50 full-time employees or equivalents, it is designated as an Applicable Large Employer (ALE).
Who needs to know the difference between part-time and full-time employees?
This information is relevant to job seekers so that they can set their priorities right, considering the work-life balance. For instance, young people, women, and older people prefer to be part-time employees rather than full-time employees.
Employers need this information more than job seekers to guide them in their hiring process. A big employer might be more inclined to hire full-time employees rather than seek part-time staff. A start-up, on the other hand, would want part-time staff as it might be the more economical choice.
Major differences between part-time and full-time employee
Time is the primal difference between part-time and full-time employees. Workers trade in their time for a job and get paid for this time commitment. The time specifics for full-time employees vary with federal state laws. For instance, in the United States, a full-time employee works about 30-35 hours a week. In some parts of Europe and Canada, a full-time job means anywhere from about 35- 40 hours a week. Part-time employment invariably means any work hours fewer than 30 hours a week.
2. Condition of service
The condition of service for a part-time employee Is based on flexibility so employers are not obligated to provide work benefits. It is usually at the discretion of the employer to provide all, some, or no work benefits. Examples of work benefits include health insurance, paid vacations, etc.
Merits and demerits of hiring a part-time employee
- Hiring a part-time employee is cheaper than hiring a full-time employee because of the decreased obligation to provide work benefits. This set of employees are flexible with their work schedule and are better able to multitask.
- The downside of hiring a part-time employee is that a good number may not be as dedicated to your enterprise and tend to lack detailed knowledge of long-term business plans.
Merits and demerits of hiring a full-time employee
- Full-time employees tend to be more dedicated to your enterprise and can accept higher responsibilities with longer hours.
- However, they require an increased payroll and you are obligated to provide work benefits for them. You might also have to provide extra training for them which will cost money. They experience a great deal of a decreased work-life balance because of the lack of flexibility.
What you can do with Paystubsnow
Running a startup cost a lot of money. In fact, the primary reason many businesses fail is because of financing. Now, as a business owner, you want to save as much as possible. All financial documentation as regards paystubs, 1099, W-2 forms, and invoices can be quickly, effectively, and affordably be prepared at Paystubsnow.
FAQS: What is the difference between full-time and part-time employment?
The difference between full-time and part-time employment is in the number of work hours. Full-time employment is usually between 30-40 hours a week, depending on federal state laws. Part-time employment is any engagement with fewer hours than 30 hours a week.
Do full-time employees get paid more than part-time?
Yes, full-time employees get paid more than part-time. Full-time employees attract higher payroll costs because of the long hours they have to put in at work. In addition, employers are also obligated to provide work benefits that also add up to their maintenance.
Which is better for my company: part-time or full-time employees?
The quick answer is that it is dependent on your company. If you don’t know how many hours per week a job will require, you might be better off starting with temporary or part-time employees, who work less hours and cost less money. Once you’ve determined the output for your company’s part-time employment, you should be able to determine whether you genuinely require someone for 40 hours or more each week.
Many business owners believe that adding full-time employees entails paying for expensive benefits such as health insurance, however this is only true for companies with 50 or more employees. If your company is smaller than that, you are not required by law to provide health insurance to any of your employees, regardless of how many hours they work.