Benefits for hourly employees?

Benefits for hourly employees?

I work as a recruiter for a relatively small employer (about 50 employees) The CEO asked me my opinion about not giving health, PTO, and holiday benefits to our hourly full-time employees in an effort to cut costs. She wants only salaried employees to have benefits.

I gave her my take on this and am curious about yours (pros and cons) especially those in HR.

Thanks.

Why women love us:

  • Daily articles on career topics
  • Jobs at companies dedicated to hiring more women
  • Advice and support from an authentic community
  • Events that help you level up in your career
  • Free membership, always

Share your insight

Join an authentic community that helps women support each other at work. Share your professional experience or ask for advice — you can even post anonymously.

7 Comments

Join the conversation
  1. Anonymous

    I stay as far away from benefit administration as possible. That said, I see a couple of potential issues. Specifically, providing to one class of employees but not another. Possible discrimination? Worse though, is employee morale and retention. If your CEO wants to be competitive as an employer, they are shooting themself in the foot with this idea.

  2. Laura

    I worked in HR for nearly 20 years and all I can say is that outside of saving money there aren't any pros and honestly saving money is a stretch because any cost savings will be eaten into by hiring costs. Trying to recruit for full time employees without offering benefits would be a nightmare and the turnover would be high. Nobody is going to stay in a position or work for a company long term that doesn't provide those benefits as it is a clear sign they don't value that "class" of employees and who wants to work for a company where they clearly aren't valued?

  3. Anonymous

    Horrible retention mindset. You will spend more money constantly hiring and training. You will not get high quality candidates. Why should someone work for this company? Try to answer that question for your company. Why are you there?

  4. Maegan, Nike Sales Rep & Career Coach

    I would propose the COST of not giving it. Turnover rate, the individuals you'll lose out on because they are NOT attracted to hourly work without benefits and the impact that will have on the business.

  5. Dr. Patty Gross

    Check with your legal counsel to make sure that it complies with state laws. I can see making benefits available for only full-time employees, so long as your part-time workers don't cut off at 15 minutes less than the full-time allotment, and you don't start converting salaried workers/positions to wage earners.

  6. Anonymous

    Watch the hourly employees quit if the CEO does that.

  7. Anonymous

    Exactly, and they will "quiet quit" while looking for new jobs; they will do the bare minimum not to get fired and not a bit more. If you want enthusiastic employees who do their best work and speak positively about your company, you have to treat them right. If pay is low and there are no benefits, especially if there is little to no chance of promotion to a salaried job, of course they are going to look for other work and aren't going to go the "extra mile." If you treat employees this way, expect them to treat you the same; don't expect superior results when you treat them as if they are inferior people.

Browse recent posts

Fairygodboss VIP
Achieve your career goals.
Be part of the largest online career community for women to find jobs, advice, and support — for free.
Fairygodboss members