In preparation for this discussion, complete your assigned reading, as well as the case study "Benefits for Part-Time Workers" at the end of Chapter 15. Then answer the following questions:
What are some factors that Alan should consider when determining whether to offer benefits to part-time workers? Do you think the firm should offer benefits to part-time workers? If yes, should it offer paid time off, the 401(k) plan, and health insurance, or only one or two of the benefits? Explain your recommendation.
In your response posts, either agree with your peers' selections by building upon their points or challenge their selections and provide reasoning for the disagreement.
What are some factors that Alan should consider when determining whether to offer benefits to part-time workers.
Do you think the firm should offer benefits to part-time workers? If yes, should it offer paid time off, the 401(k) plan, and health insurance, or only one or two of the benefits? Explain your recommendation.
The factor that Alan should consider is the pricing of these benefits to part-time versus
full-time workers. Because health care is a fixed cost and the firm will have to cover the same for both part-time and full-time employees, part-time employees will have to pay more (Martocchio, 2015, pg. 355). It also wouldn't make justice for the company because it will consume a lot of their budget that can be used for other benefits. Leading to another factor for Alan to consider is other benefits that can take the place of healthcare.
Both paid time off and 401k should be offered to part-time employees because it would be pro-rated based on the number of hours they work (Martocchio, 2015, pg. 355). Which won't be such a strain on the company budget compared to the health insurance. As mentioned in the factors that Alan should consider it seems that providing health insurance for part-time employees won't be so much of a benefit due to the fixed cost. This explains why a lot of companies only offer insurance to full-time employees only. Being able to offer both 401k and time off is already providing more than other companies in the area which will help when hiring for a competitive position like the CPA's. Alan can also bring to light other options that can be taking the place of health insurance, like offering telework, educational assistance, discounts, disability, or accident coverage. There are multiple other things that the company can do to attract employees to competitive positions.
Martocchio, J. J. (2015). Strategic compensation: A human resource management approach (8th ed.). Upper Saddle River, NJ: Pearson Education, Inc.