Hiring new staff is a process that should never be taken lightly, no matter what type of business you run. Whether you’re hiring sales assistants or support staff, you should ensure that you choose the right people for the job and have an employment structure in place that is mutually beneficial.
One of the biggest decisions you can make when it comes to running a business is whether you want to hire full-time employees, part-time employees, or perhaps a mixture of both” By understanding how these employment structures work, and the benefits and disadvantages of each, you’ll be able to make informed choices that will suit your business model the best.
What is part-time work?
Part-time work is any work that offers up to 35 hours of work per week in a permanent position with a company.
What are the advantages of using part-time employees?
One of the best things about having part-time employees is that they have flexible working hours and they can offer cover shifts on the weekends and the evenings, where full-time staff may not be able to. Part-time employees are usually paid hourly wages instead of a salary paid monthly, which usually can end up costing the company less in the long run.
Two part-time employees can often do the job of one full-time employee for less money. The other benefit of this is that you would be getting two unique sets of skills and two different perspectives. You know what they say….two heads are better than one!
Many people are attracted to having a part-time job as it can allow them to maintain other parts of their lives, such as studying or running a household.
What are the disadvantages of using part-time employees?
Because part-time work often does not offer benefits and vacation time, it can be difficult to find dedicated part-time employees. Most part-time employees are looking for part-time work for just a short period of time, so you could experience a massive turnover in part-time employees, which could put a lot of pressure on HR. As they are not at your premises every day, part-time employees may not feel as much loyalty to your business as full-time employees would.
In some part-time roles, employees are able to decline shifts if they can’t make it, which could create issues if you desperately need shifts to be filled.
What is full-time work?
Full-time employees make up the majority of the workforce in the UK. Full-time employees are employees that dedicate more than 35 hours of work to your business. They have detailed contracts and benefits that entitle them to everything from parental leave to life insurance.
What are the advantages of using full-time employees?
In general, full-time employees can be considered a lot more reliable than part-time employees. As they’re receiving benefits and vacation leave, they are more likely to appreciate their job more and take it seriously, thus giving you a more dedicated workforce.
Full-time employees offer higher productivity rates and consistency in their work.
The work that full-time employees do is more structured, and their monthly work schedules are planned well ahead of time.
What are the disadvantages of using full-time employees?
There is not as much flexibility when it comes to using full-time employees. Most full-time employees would not be interested in working overtime or on weekends if need be. They are used to their schedule and want to stick to it.
It is also much harder to get rid of full-time employees. Want to fire a full-time employee It is often nearly impossible and can take years to legally get rid of a troublesome or lazy employee that hasn’t done anything illegal or drastically wrong to give you grounds on which to fire them.
The benefits offered to full-time employees can also end up costing your business immensely. Whenever someone leaves on parental leave, you’ll need to get in a substitute worker while still paying them their full salary.
You’re also responsible for paying tax on each employee’s salary, so there is a lot of admin to go along with the extra costs of having full-time employees.
When should I use part-time employees?
Part-time employees are a great idea for when you are just starting your business, and you are unsure as to the exact roles that need to be filled and how much work will be required of your employees. Start out with part-time employees, and you could always upgrade them to full-time contracts should their workload increase.
Part-time employees also fill flexible roles within companies in which working hours change from week to week depending on the number of clients, orders, etc.
When your company begins expanding is another ideal time to hire more part-time employees.
When should I use full-time employees?
Once your company has become established, and you know exactly how many hours per week you will need employees, and you have definitive roles for them to fill, then you can begin to look at getting a few of your very own full-time employees.
Fill in the most integral roles in the business with full-time employees before any other minor roles. When you sign on full-time employees, you have a massive responsibility towards them, so this decision should not be taken lightly.
The third option
In this article, we only touched on hiring full-time and part-time employees, but there is a third option. Freelancers or sub-contractors can be a fantastic way to get projects done without committing to employing anyone. Simply pay their invoices at the end of every job, and there is no need to worry about tax, NIC, etc.
Freelancers are ideal for when you land a big contract and need extra workers for a short period of time or for one-off jobs.
Whether you decide to use part-time or full-time employees, we recommend that you make a choice that is right for your business and make sure that every employment contract you create covers all of your bases.