Why all companies should offer benefits to part-time employees

Part-time workers keep the lights on for huge parts of the economy: retail, hospitality, food service, staffing, seasonal businesses, and franchises. But too often, benefits are still treated like a full-time only perk. That gap creates real stress for workers and real costs for employers turnover, hiring headaches, and inconsistent service.

The good news: you don’t have to guess whether offering part-time benefits is worth it. Some of the most recognizable employers in the country already do it. Starbucks is widely known for expanding access to healthcare benefits beyond traditional full-time roles. Costco has long been recognized for offering healthcare and retirement benefits to eligible part-time employees. UPS highlights healthcare and tuition assistance for part-timers, and Walmart promotes education support through Live Better U alongside health coverage for eligible associates. Target leans into financial benefits like a 401(k) match and has expanded access to healthcare benefits over time.

Here’s what those examples teach us: benefits don’t have to be complicated to be effective. Companies like The Home Depot, Trader Joes, Lowes, and REI show that a practical mix of health coverage options, dental/vision, retirement savings access, and meaningful employee perks can help employees feel supported and help employers keep good people longer. Chipotles education benefits are another strong example: when you help part-time employees build skills and credentials, you create loyalty and a stronger pipeline for future supervisors and managers.

We cant afford benefits, is usually a turnover problem in disguise

For many hourly-heavy employers, the real budget killer isn’t benefits its churn. Every time you replace a trained employee, you pay for recruiting, onboarding, scheduling gaps, and lost productivity. Benefits are one of the most direct ways to reduce that churn because they address what employees actually worry about: access, affordability, and peace of mind.

Cost reality: big-brand benefits vs. a practical part-time package

If benefits cost hundreds per month, how many part-time employees actually participate?

When benefits are expensive, participation becomes the hidden problem. If a traditional plan costs hundreds of dollars per month, part-time employees often have to make a tough call: pay a large monthly premium out of a smaller paycheck, or skip coverage altogether. Even when an employer offers a plan, the real question becomes: how many part-time employees will actually enroll and keep it?

That’s why “benefits offered” and “benefits used” are not the same thing. For hourly and part-time teams, adoption usually depends on three things: affordability, simplicity, and immediate value. If the employee cost feels out of reach, or the enrollment process feels confusing, participation drops—and the employer is left paying for a program that doesn’t reach the people it was meant to help.

A practical alternative is to offer a lower-cost, easy-to-use benefits package that employees can say “yes” to without hesitation. When benefits are priced accessibly and deliver everyday savings (telemedicine, prescriptions, dental/vision discounts, and support services), participation tends to be higher—because the value is clear and the barrier to entry is low.

  • Traditional employer-sponsored insurance is commonly hundreds of dollars per employee per month in total premium cost (split between employer and employee), plus administration.
  • PTBs 7-in-1 Essential Benefits Package starts at $1.99/week (about $8.62/month) and can be offered as voluntary, employee-paid benefits.
  • Some employers also choose to contribute or match to increase participation but its not required to get started.

The bottom line

Offering benefits to part-time employees is not just a nice-to-have. Its a competitive advantage. It helps you hire faster, keep good people longer, improve attendance and engagement, and build a reputation that attracts talent.

And as more recognizable brands keep raising the bar for part-time benefits, the question becomes less Should we? and more How quickly can we implement something that works for our workforce?

Want a simple way to offer part-time benefits?

If you employ part-time, hourly, seasonal, gig, or 1099 workers, you can offer a practical benefits package that complements existing coverage (or fills the gap when there is none). A bundle that includes telemedicine, dental/vision savings, prescription discounts, and EAP-style support can make a real difference in utilization and retention without creating a heavy lift for your team and will only cost a few dollars per week.

About The Author: Ricci DeRosa is the Co-Founder of The Part-Time Benefits Company and has 25+ years in the employee benefits field, serving brokers, associations, and employers. He believes everyone deserves fast, affordable access to healthcare—regardless of how they are employed—especially as 70% of Americans live paycheck to paycheck and traditional insurance can strain family budgets. Known for out-of-the-box thinking, Ricci builds practical benefit solutions for overlooked workers.

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