Offer more $$ to part timers instead of health insurance?
justkali
2 Posts
We are considering dropping health insurance for our part-time employees and offering them a monetary adjustment instead. Have any of you ever done this? If so, what was the impact to morale, turnover, etc.?
Comments
It's a tough sell, especially if the employees have gotten used to certain "benefits". Cost-effective-wise, however, I would not be offering part-timers any benefits (NOT that I'm a Scrooge).
That's how we like to staff some of our offices to save on overhead expenses. Most are covered under spousal Plans.
One more alternative, phase it out over the course of this year to allow them to budget for the coming year or in six months, whenever you choose to DSCT the part-time bene.
Hope this helps!
Marty
I worked for an entity that allowed part-time employees to carry the health insurance if they paid for it. Of course, it was expensive, they had to pay all of the premium (pre-taxed, however.) The part-timers also accrued, sick and vacation at half the rate that full-timers did if they worked a minimum of 20 hours per week.
We eventually gave them a choice and called it "Modified Comp." If they chose to waive all the benefits, they were given an 8% increase.
That was about 9 years ago. It may have some legal ramifications by now. Maybe you could check with your Finance department for a suggestion. It could be that both the company and the employee will benefit from the choice. I can only see it being good for morale.
"Sam"