In general, we’re living in a time in which there are more jobs available than prospective employees seeking work. Since the Obama administration, employers have been more restricted in when and how they are required to benefit their employees. Full-time benefits have a massive impact on the job-seeking market, and this article will highlight some of the effects.
Getting a Leg Up on the Competition
It’s estimated that 70% of workers aren’t actively seeking a job, while 30% are. Because there’s a relatively small number of people seeking jobs compared to the jobs available, employers have to battle with each other to secure top talent. When a major corporation announces new benefits, such as extended parental leave or unlimited PTO, all other employers, especially those within the same industry, have to react in a way that makes them as appealing as other jobs with exciting new benefits. This has become a constant race to provide more flexibility, more benefits, and more tailored jobs to suit employees’ lifestyles. Some benefits, such as increasing PTO or parental leave, are a much better option for the employer than increasing payroll, so often the enhanced benefit route is the way employers try to attract new talent.
Covering the Basics
While many employees are looking for exciting new benefits, others just want the richest coverage of the basics. In fact, 88% of respondents to a 2020 survey said they value health, dental, and vision benefits in a job search. These things are especially desirable for established or older full-time workers who are looking for coverage for not just themselves, but possibly a spouse and/or children as well. The truth is that the level to which these basic items are covered from employer to employer varies greatly. In the majority of companies, the employee has pay withheld from their check to go toward coverage of health insurance. Some employers completely cover health insurance, meaning that employees take home a larger portion of their gross pay. Young and naive job seekers may not understand this and may be laser-focused on the salary figure, when what kind of coverage their insurance provides will have a huge impact on their well-being. In general, the workforce is becoming savvier about this, requiring hiring companies to improve their benefits and communicate about them upfront with applicants.
Part-Time Options Aplenty
Employees are considered full-time if they work 30 hours per week or more, and legally, they must receive certain benefits if they are full-time. This has become more restrictive for employers (though beneficial for employees), as they have to balance their company’s labor needs while not massively expanding their payroll expenses. The criteria for what makes an employee considered full-time can vary by state. For example, Legal Match reports that workers that commit to just 30 hours per week can be viewed as full-time in the state of Illinois. It can’t be overstated how much more expensive it is to hire a full-time employee than a part-time employee that doesn’t have benefits.
In many industries, employee benefits cost on average at least as much as salary, so an employee that is earning $60,000 per year really costs the company $120,000 per year. With that in mind, employers are seeking applicants for more and more part-time positions. These employees don’t need to receive benefits like full-time employees. Employers are giving part-time workers tons of flexibility and perks for this reason. The number of ways in which an employee can work on a part-time basis abound, and it’s a really great market for those looking to work less than 30 hours per week. Some employers even offer partial benefits and bonus money to part-time employees to draw them in and retain them.
To recap, the current market enables prospective employees to shop around and wait for a better benefits package. Part-time employees are in massive demand and can find something perfect for their situation. This is all a result of a job-heavy, seeker-light environment that doesn’t figure to change anytime soon.
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