Why might a business intentionally hire additional part-time employees?

A business might intentionally hire additional part-time employees to avoid Full-Time Equivalent (FTE) qualification, particularly in the context of employee benefits and regulatory compliance. By maintaining a workforce primarily composed of part-time employees, a business can stay below the threshold that requires it to offer certain benefits mandated for full-time employees, such as health insurance under the Affordable Care Act (ACA) in the United States. This strategy allows companies to manage costs effectively, as benefits for part-time employees are typically less extensive or not provided at all, thereby alleviating the financial burden associated with comprehensive employee benefits.

When assessing various business strategies, maintaining flexibility in staffing through part-time roles can provide a company with the adaptability needed to respond to fluctuating demands without incurring the higher costs associated with full-time staff. While hiring part-time workers may have implications for profit margins, union compliance, or employee benefits, the primary motivation in this scenario tends to center around managing FTE considerations.