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Benefits for Part-Time Workers

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1. What are some factors that Alan should consider when determining whether or not to offer benefits to part-time workers?

Alan should consider what JSH competitors offer to their part-time workers. As one of the fastest growing CPA firms the company is going to need to continue to employ top talent in their field, but not offering competitive benefits could hinder this. Additionally, he should consider the results of the two compensation survey reports, which showed 95% of CPA firms offer time-off to part-time employees, 75% offered healthcare, and 67% offered retirement benefits to part-time workers. Finally, Alan should consider the cost factor of offering benefits to part-time employees. As stated, healthcare insurance is a fixed cost and could raise total compensation for part-time employees to nearly 50%.

2. Do you think the firm should offer benefits to part-time workers? If yes, should they offer paid time-off, the 401(k) plan and health insurance? Or only one or two of the benefits. Explain your recommendation.

I believe the firm should offer benefits to part-time employees, however there are options available when creating a benefit package for these employees. First, paid time-off should be incurred based on the hours worked. Additionally, I would recommend 401(k) contributions start after a certain amount of time on the job. Finally, I would recommend providing a fixed healthcare allowance to part-time employees every month. This would be cost effective for the employer and allow the employee to choose his or her own plan. An individual would be able to find affordable plans through different companies, and can receive lower monthly costs and deductibles based on income level. This option allows the company to offer healthcare benefits, remain competitive, but avoid raising costs regarding the compensation

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