Full Time and Part Time Contracts
Resources for Unit 6: Principles of Management. BTEC Level 3 Business Studies
Full Time and Part Time Contracts
Full time contracts are agreements between the employer and employee where the employee is paid to work a set number of hours that is generally accepted as full time in the industry. This is usually between 35 - 40 hours per week. Full time contracts typically come with additional benefits such as medical insurance, pension contributions and paid leave.
Part time contracts are employment agreements where employees work fewer hours than full time members of staff. They typically involve a fixed schedule of which days and times they are expected at work. Some people actively choose to take on part time contracts due to their outside commitments but some may take them because they can't find a full time job.
Benefits and Drawbacks of Full Time Contracts
Benefits of full time contracts
Lower turnover: employees on full time contracts typically feel more secure and tend to be more committed to the organisation. This can reduce turnover leading to a more stable workforce.
Skill development: full time staff have more opportunities to practise and refine their skills as they spend more time in the workplace. Any investment in training is rewarded as staff remain in the workforce.
Team cohesion: Staff who are present at work on a full time basis have lots of opportunities to work with other members of the team. This can improve teamwork, communication and morale
Drawbacks of Full Time Contracts
Higher labour costs: Full time employees typically require higher salaries and their contracts usually come with additional benefits. This increases labour costs for employers.
Less flexibility: Staff on full time contracts typically have fixed schedules and responsibilities. This can make it challenging to adapt to changing
Stress and burnout: Full time employees are often expected to take on higher levels of responsibility that people on different contract types which can feel unmanageable.
Benefits and Drawbacks of Part Time Contracts
Benefits of Part Time Contracts
Flexibility: Managers can adjust staffing levels to align with peak demand times without the need to offer full-time contracts to all staff. This allows employers to schedule additional part-time staff during busy periods, ensuring adequate staffing without overspending.
Lower labour costs: As employers can use part time workers for the times they need extra staff, they do not need to pay staff for idle time. Part time workers also typically receive lower wages and fewer additional benefits than their full time counterparts.
Access to Talent: By offering part-time contracts, businesses can attract people who may not be able to commit to full-time positions due to outside responsibilities. This opens up the recruitment process to a broader range of candidates, allowing managers to select from a more diverse talent pool.
Drawbacks of Part Time Contracts
Higher turnover: Part time roles attract people in transitional phases of their lives or people with outside commitments. This can lead to high turnovers as they seek alternative employment when their circumstances change.
Communication issues: Part-time workers are not present on all shifts, resulting in reduced opportunities for interaction with the team. This can lead to missed meetings and training sessions, creating gaps in knowledge and skill requirements.
Scheduling: As many people who choose to work part time are planning their work around other commitments such as family, it becomes difficult for managers to create schedules that ensure adequate staffing for busy periods while meeting the needs of their part time staff.
