A new survey of the nation’s most influential Chief Financial Officers by Duke University and CFO Global Business Outlook finds that 59 percent of CFOs are leaning more on part time workers to compose their workforce. Even relatively important advisers and consultants for projects are being outsourced to keep margin lines and profits in check. With the Affordable Care Act looming around the corner, it doesn’t appear that this trend will be reversing any time soon.
So why are CFOs relying more and more on part time workers?
- 38 percent cite the healthcare reform
- 44 percent blame the economy
- 18 percent say it’s the outsourcing of jobs to other countries
Insights from Deloitte details the many healthcare reform considerations that CFOs must consider for part time employees. The reality is that as far as healthcare benefits are concerned, “full-time employees” are now considered anyone who works 30 hours or more a week. This has a major impact on the way that CFOs can and should rely on part time workers to compose their workforce.
Reviewing the Advantages and Disadvantages of Part Time Employees
As this trend continues affecting how companies create their teams, it’s important for CFOs to consider the benefits and drawbacks of part time employees before implementing a strategy. Benefits of more part time employees include:
- Cost. Undoubtedly, the biggest benefit behind part time employees is the fact that they will help your company cut costs. Whether it’s through lower paychecks or fewer benefits, the overhead per part time employee is considerably lower than a full time one.
- Flexibility. Because there’s no obligation to schedule a part time employee 40 hours a week, managers now have the opportunity to schedule employees as needed to fill the gaps.
- Turnaround. If a professional relationship isn’t working out, the cost and process of replacing a part time employee isn’t as dramatic.
However, there are certainly drawbacks to relying more heavily on part time employees as well. For instance, a part time employee is less likely to show long-term commitment to a company, especially if the compensation isn’t there. Part time employees also tend to be less knowledgeable about your company simply because they’re not as involved in the various workflow processes.