SOUTHERN CALIFORNIA CAREERS / PART-TIME CAREERS : Part-Timers Fend for Themselves When Negotiating Benefits
One of the biggest drawbacks of working part time is the possible loss of valuable benefits. Part-timers face a daunting dilemma: They gain control and flexibility, but still have to pay the doctor and dentist.
More employers are understanding the advantages of part-time employment. But, says Ellen Bravo, executive director of 9 to 5, the National Assn. of Working Women, “the bad news is that most part-time workers still don’t have benefits.”
Traditionally tied to full-time work, benefits have generally not caught up with the 23 million Americans--about 19% of the work force--who work part time. Benefits are largely determined by how many hours an employee works. According to a 1994 survey by Hewitt Associates, a benefits consulting firm, only 28% of employees working fewer than 20 hours a week received paid sick leave, whereas 57% of those working 20 to 29 hours earned the same benefit.
Statutory benefits--Social Security, Medicare, unemployment insurance and workers’ compensation--must be paid to all employees, regardless of the number of hours worked.
Supplemental benefits--such as insurance, retirement plans and financial assistance programs--are offered at the employer’s discretion. But if an employer provides a retirement plan, it may not exclude eligible part-timers. Under the Employee Retirement Income Security Act, coverage must be provided to all employees 21 or older, with one year of service, who work a minimum of 1,000 hours a year.
Compensatory benefits--paid leaves for vacation, illness, holidays, maternity and paternity--are also the prerogative of the employer. The 1993 Family and Medical Leave Act provides up to 12 weeks of unpaid leave after the birth or adoption of a child, to care for a seriously ill child, spouse, or parent or to recover from one’s own serious illness. But employers can exclude employees who have not worked at least one year and have worked fewer than 1,250 hours in the previous 12 months.
While many firms are shifting work to part-time employees precisely to avoid paying benefits, some have instituted part-time benefits policies as an incentive to keep workers productive.
However, most part-time employees find themselves on their own, having to negotiate for the best benefits package they can get.
“People often feel grateful for the opportunity to work part time and are hesitant to rock the boat and ask for benefits,” said Maria Laqueur, executive director of the Assn. of Part-Time Employees. “Benefits are part of your total compensation and need to be negotiated at the outset. It’s very hard to go back and renegotiate for them.”
In their book, “Breaking Out of 9 to 5,” Laqueur and co-author Donna Dickinson offer part-time workers a series of practical negotiating tips:
* Determine ahead of time which benefits are essential and what the added costs will be if they are not provided.
* Study the company’s benefits policy to learn exactly which items are fair game during negotiations.
* In the absence of a clear-cut corporate policy, find out if any part-time co-workers have managed to retain their benefits. Without such a precedent, bargain for insurance coverage, paid leaves and retirement plans separately.
“You can try to negotiate a pay raise to compensate for any loss in benefits,” Laqueur said. “But if that doesn’t work, and it seldom does, you may need to go outside to secure those benefits. If you are changing jobs, you need that benefit information to negotiate a new salary. If you are going out on your own, you need to include the added cost of benefits in pricing your own services.”
Put your proposals in writing, says 9 to 5’s Bravo. “Some people are visual and won’t really hear you until they see the proposal written down. In addition to helping you make your case, writing down responsibilities and desired salary and benefits helps clarify expectations and establishes a basis for evaluating your work.”
Timing is everything, according to Joyce Hadley, author of “Part-Time Careers.”
“You’re really taking your chances if you nab your boss in the hall and suggest a part-time schedule and benefits,” she said. “Assess your boss’s attitude, the office climate and political environment. The perfect time to submit a business proposal is not in the midst of a merger or acquisition, but after a big successful project when everyone is basking in the glory.”
When benefit negotiations fail, part-time employees can seek other insurance options. Some HMOs, such as Health Net, have started offering medical coverage for part-time workers. A number of professional and fraternal organizations like the National Organization for Women, the National Assn. of Women Business Owners, the American Assn. of Retired Persons and Kiwanis and Soroptimist clubs, make group rates available to members, said Los Angeles career counselor Joyce Schwartz.
“Even though you may no longer be an actor or a carpenter, for example, you may still be able to reactivate membership in unions or guilds that you belonged to at another time in your life,” Schwartz said. “Health coverage is also available through many churches and alumni organizations. People who go back to school for retraining can also receive health insurance.”
Managers often lose another type of benefit: “perks” like window offices, executive dining room privileges and preferred parking spaces. Experts suggest discussing perquisites after the more substantive issues have been agreed upon.
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The Benefits Gap
The number of benefits available to part-time employees varies by the number of hours the employee works, with the availability increasing as the hours worked increase. The following chart indicates the percentage of companies offering benefits to the designated category of employee, according to a 1994 survey by Hewitt Associates, a benefits consulting firm:
Benefit Full-time 30+ hrs 20-29 hrs Less than 20 hrs Paid vacation time 100% 86% 80% 47% Paid holidays 99 83 78 51 Paid sick leave 92 64 57 28 Medical insurance 100 76 62 25 Dependent insurance 99 73 60 24 Dental insurance 96 69 55 23 Life insurance 99 69 55 23 Long-term disability 95 53 36 11 Short-term disability 76 47 35 18
Source: Hewitt Associates
